Many of you may have heard of the infamous “Stanley Cup/Tumbler” trending all over TikTok. Consumers that have fallen prey to this trend seem to be GenZ, many posting cup reviews all over the app. Although the tumblers do have pretty rave reviews and seem to do the job, the cost of the cup is pretty hefty. But with BNPL options, it’s easy for GenZ to spend their money on microtrends.
What GenZ doesn’t understand is that the cup they thought was $50, is actually near $60 with interest fees. APR awareness is important, and it is definitely more important than a $50 cup you could probably buy off Amazon for $20 cheaper.
High APR and interest rates are the culprits of many microtrends from BNPL purchases. It’s important that GenZ understand the repercussions of credit card debt and spending.
TomoCredit, a credit card that has 0 interest/APR and virtually allows you to never carry a balance, wants GenZ and others to be aware of BNPL while shopping. Fees rack up quickly, and the last thing you want is to carry a balance you can’t pay.
If you are interested in learning more, please reach out to press@tomocredit.com.
If you suffer from a low or (in many cases) no credit score, it may be quite difficult to achieve some of your personal financial goals. Some of these goals include: obtaining an auto loan, mortgage, or applying for any other types of loans.
According to FICO’s most recent statistics, only 1.6% of 232 million U.S. consumers have a perfect credit score at 850. This feat may seem unachievable, but it isn’t impossible.
We surveyed 100 people in San Francisco and asked them what their credit score is. Many answered in the mid-600s to 700 range, with a handful above 800 and some at a PERFECT 850.
We asked those that were above 800 how they achieved this. The following are some tips and tricks they shared:
Pay your bills on time and always pay over the minimum.
Don’t max out your cards.
Keep a low or 0 balance. Some companies, like TomoCredit, feature autopay, so you never have to worry about making a late payment. Tomo’s autopay triggers weekly, so you’ll also never keep a balance.
Only spend on what you need, not what you want.
Have a budget and stick to it. Seems simple, but can be difficult and challenging in practice.
Create a strategy for your credit card usage — designate a credit card to the spending type. For example, if you have more than one credit card, use one for gas and groceries only and the other for major purchases.
Don’t open too many accounts. Retail stores usually have people fall prey to their credit card programs and many tend to forget they signed up for the card until they receive a late payment notice in the mail.
Understand your APR/interest rates. Know how much you are paying and what you will need to pay.
Don’t close your credit card accounts. This factors into your FICO on credit card length history.
Check your score for free. Experian, Transunion, Equifax all have annual free credit reports. Some of your current accounts may also show you your current score on the dashboard when you log in, like Tomo’s dashboard for instance.
How to Financially Prepare Yourself During Layoff Season
2022 saw a mass of layoffs from many companies, with tech at the forefront. Thousands of people were left unemployed, with many having to figure out how to survive the unexpected news, impacting them mentally and financially.
More recent news of layoffs is the cryptocurrency exchange platform, Coinbase. They announced last night that they would be cutting 20% of their workforce, after already reducing 18% of their staff in June ‘22.
Amid these layoffs, we thought it would be helpful to provide a “how-to-guide” on surviving (financially) through unexpected circumstances.
TomoCredit’s Step-by-Step Guide on Financially Surviving a Layoff:
Make sure you have between 3 to 6 months’ worth of salary in case of a layoff or other unexpected circumstance(s).
File for Unemployment immediately. The quicker you file, the faster you will be able to obtain any funds you qualify for. The process can be lengthy, so do not wait!
Organize your bills and create a strategic plan. Make sure you know what bills are due, if there are any plans you can cancel until you can afford them, and call your providers to see if they offer any program to delay your payment dates.
Check your benefits. Depending on your case and your employer, you could qualify for benefits extension (also depending on what state you live in), i.e. COBRA.
Be frugal! Now is the time to pinch every penny and not spend frivolously on things you don’t need.
Create a savings account and a savings plan if you haven’t already. Put money away that you are not spending on necessities. Practice differentiating between needs and wants.
Evaluate your current debt. This can be student/credit card/auto/etc. You should start to look at all your open debt and reach out to companies to see if they offer any sort of forbearance while you are in a time of uncertainty.
Be open to opportunities. Take advantage of any opportunity dealt your way. Even if the opportunity does not make you a ton of money or is equivalent to what you were making before, this can help pay the bills. And who knows, this opportunity could turn into something better in the future.
Track your spending. Create a spending tracker in Excel and make sure you record every penny you spend. You can also use the “cash diet” method to track expenses. This tactic allows you to be more transparent about your spending and can trick your mind into thinking it is harder to let go of paper money.
Use your credit cards wisely. In times like these, you will want to use any credit card you have, strategically. Stay away from your cards that have high APR/interest. These fees rack up quickly and you’ll be in a lot of trouble. Cards like TomoCredit, with 0 interest/APR, will keep you in a win-win situation by helping you build credit without burning a hole in your pocket.
We hope these steps will help you get back on your feet. If you have any questions about our latest blog on financially surviving a layoff, feel free to reach us at press@tomocredit.com
Credit card debt, or any debt for that matter, can be a huge headache. No one likes to borrow money, especially if there is interest accruing on top of that. This New Year, make sure you are well organized and have a plan focused on your financial goals. SF based startup, TomoCredit, helps their users manage credit debt through one of their unique card features — weekly autopay. Users don’t have to worry about remembering to pay on time or carrying a large balance. Instead, the autopay feature triggers weekly on users’ full balance. This means a quicker credit score boost AND 0 credit debt! You start with a 0 balance every week.
Nothing says “new year, new me” like a freshly paid-off credit card every week! Asides from the nifty autopay feature, TomoCredit also features a 0% APR/0 interest AND you don’t have to have credit history to apply!
BNPL has taken consumers by storm in the last few years. But these apps, like Klarna, Afterpay, etc. should not be expecting the same results from spenders in 2023.
Consumers this new year are much more diligent and smart with how they spend their money. With more tools and education on financial literacy and startups, like TomoCredit, placing the importance on smart spending, consumers are all ears (especially in this economy).
Consumers are finally being hit with the high interest they spent on their electronic devices from last holiday. They are learning from their mistakes and to not “bite on an easy hook.”
SF based startup, TomoCredit, announced that they’ve seen a huge spike in applications in 2022 because of their no interest/0 APR card feature. CEO and founder, Kristy Kim, explains that consumers are feeling the aftermath of easy spending with BNPL options, but don’t understand the repercussions until they see interest fees charged to their account.
Time management is something we could all get better at, let’s be honest. Whether it be on the job, in school, or even in your personal life, effective time management has significant benefits. Time management helps you accomplish more tasks quickly and leaves you stress free. There are many different ways to go about managing your time and tools to help you get started, making this much easier. The downside of this is that it can sometimes feel like there are too many different apps out there. Luckily, there are only a few you actually need to tackle time management head on.
Download a Calendar App
One of the most important tools, if not the most important, you can use is a calendar app. A good calendar app will allow you to use it with several devices including your mobile phone and computer. This way, you will always have your calendar right at your fingertips and be able to quickly add something without giving it a second thought or wasting a second of your time. An app likse Google Calendar can not only sync any changes made from multiple devices, but can remind you of upcoming events, allow you to share events with friends, or create a Google Meet call with the touch of a button. These help you to do more and be more connected, especially via Google Meet (a major selling point when working from home or socially distancing).
Make a To-Do List
Another classic time management tool is a to-do list. Although pretty old-fashioned, this tried and true method holds you accountable for all you need to accomplish on any given day. The key to success is not falling behind and setting realistic goals. No, you probably can’t get everything you need to get done before November in the next 3 days, but you can certainly get everything you need done today ahead of time and set yourself up for success. If you end up falling short of your goal, don’t give up. Instead, restructure your list so it’s a bit more realistic and try again tomorrow. By keeping your daily to-do lists short enough to be achievable, you will not only be on track to complete everything you need to get done ahead of time, but you might even end up having fun doing it and want to knock some things off tomorrow’s list as well. Don’t believe it? Try it yourself!
Clean Out Your Inbox
Lastly, take the time to clean out your email inbox. It’s not fun, but by unsubscribing to all the emails you no longer wish to receive and deleting old ones, you’ll find yourself spending much less time sifting through your entire inbox of 11,479 unread emails. As an added bonus, you won’t miss any important events or news you might need to attend to.
Benefits
These methods can help you get more tasks accomplished faster. As if that wasn’t good enough, you’ll soon find yourself having more free time on your hands after getting things done ahead of time. Say goodbye to the stress of having too many things to do and not enough time. You’ll no longer need to bear the weight of knowing you should have done more today or that you’ll have to pick up the slack tomorrow.
The benefits of good time management are linked to financial health — often overlooked but necessary to achieving the things you want faster. Both time and money are necessary commodities that will enhance your life when managed mindfully. With good financial health, you will be better positioned to achieve more of what you want in life.. For example, you’ll be eligible for better mortgages, auto loans, and many other things! These will all save you a ton of money over the course of your lifetime. By continually saving, you’ll save yourself the worry of being unable to tap into your emergency fund should a major crisis come your way.
Do you really need that extra piece of plastic in your wallet? Yes, and here’s why.
Build credit.
A credit score and credit history may seem ambiguous now, but there will come a day when you will wish for that high credit score and long credit history. Whether it is renting or buying a property or financing a car purchase or some other large purchase, your credit score and credit history matter. They will determine if you get approved for that new home or new car, and the borrowing rate you are charged. Would you rather pay more than necessary? Absolutely not, no one does. Time to get a credit card and start building that credit.
Rewards.
There are so many credit cards out there and most of them offer some form of rewards, sometimes even just for signing up! Besides sign-up bonuses, most credit cards offer continuous cash back rewards as you use the card. Why not start paying yourself back for spending money?
Interest-free borrowing.
By using credit cards, you can borrow money for a short period of time and pay zero interest as long as you pay off the credit card in full by the payment due date. You can’t get a lower rate than that.
Peace of mind.
Most credit cards come with some form of insurance these days. This means if you have a fraudulent charge on your card, you can easily report it to your bank and get the funds back right away. If you rely on using cash for all transactions, you risk getting it stolen or simply losing it. With a debit card, your money actually leaves your bank account if a fraudulent charge were to occur. You will eventually get your money back, but it can take longer than if it were to happen to a credit card.
Avoid foreign transaction fees.
There is a lot of world to see and that requires traveling. If you get the right credit card, you can avoid foreign transaction fees when traveling in a different country, which can add up quickly. Save your money for traveling and don’t waste it on fees.
Convinced you need a credit card now?
Be one of the first to get in on the next generation of credit cards. Visit TomoCredit.com to learn more.
