TomoCredit, a U.S.-based fintech that offers a credit card that’s designed to build a credit history for first-time borrowers, announced on Wednesday it secured $7 million through its seed funding round, which included participation from KB Investment Inc. (KBIC), a subsidiary of South Korea’s leading consumer bank, Kookmin Bank, along with Barclays, Knollwood Investment Advisory, BAM Ventures, Passport Capital, Ulu Ventures, and Strong Ventures.
TomoCredit describes itself as a next-generation credit card, catering to young adults, international working professionals, students, and immigrants looking to build a better financial future in the U.S. The company revealed it processes millions of dollars in transactions monthly and is FDIC-insured through its partner bank, Community Federal Savings Bank.
“TomoCredit provides credit to the millions of individuals that lack a credit score; most commonly young adults or internationals. Consumers early in their credit history can use TomoCredit to help boost credit scores and position themselves well as qualified candidates for mortgages, auto loans and lower insurance rates.”
TomoCredit further explained that its cards became available in late Summer 2020 and the company received more than 300,000 applicants at launch. Nearly half were immediately pre-approved, leading to more than 10,000 active users today and cards will be issued to the remaining applicants by Summer 2021.
“TomoCredit is a credit card that operates with a debit card model: payments are made on a 7-day automatic payment schedule and no fees or APR are applied. Applications are screened based on real-time cash flow, not FICO or credit scores. Credit limits on average are $3,000, but can scale to a maximum of $10,000. Borrowers can link to their investment accounts to increase their credit limits.”
TomoCredit went on to add that the investment round’s funds will further accelerate its growth through hiring and product development.