TomoCredit Launches TomoScore, A Modern Enterprise Tool That Gives Lenders A Way To Evaluate Borrowers Who Have No Credit History

TomoScore Is A Proven Method For Assessing And Acquiring Mid- To High-Income Borrowers, Keeping Default Rates Better Than Industry Averages

SAN FRANCISCO, March 7, 2024 /PRNewswire/ -- TomoCredit, a fintech startup expanding credit accessibility for millions of Americans, today announced that it is offering TomoScore to businesses – an innovative cash flow-based credit score that provides lenders a risk-free way to identify high-quality borrowers with limited or no credit history. 

TomoScore is a well-trained underwriting model that utilizes real-time, cash-flow based performance data as an alternative to traditional credit scores. By monitoring the cash flow attributes of those considered "credit invisible" – including new U.S. citizens without prior credit history, small and medium-sized business owners, students, and other young adults who demonstrate sound financial practices – TomoScore gives lenders a proven method to evaluate and acquire mid- to high-income borrowers while keeping default rates better than industry averages. 

More than 62 million Americans have thin credit files or no credit history at all, making it difficult to secure loans from lenders. Lenders historically rely on consumer credit scores from FICO and other credit reporting bureaus to identify eligible candidates. FICO scores are calculated using a mix of data including payment history, amounts owed, length of credit history, new credit, and credit mix obtained strictly from credit files. This traditional method ignores a borrower's real-time cash flow data – meaning that credit-worthy, high-income individuals with no credit score could have their application declined by lenders. 

"Our current credit bureau system is outdated and prescriptive, presenting large hurdles for millions of consumers," said TomoCredit founder Kristy Kim. "I experienced this difficulty firsthand when as an immigrant and a recent college graduate with no credit history, I had to pay cash for a car because I faced multiple auto loan rejections. While I was fortunate enough to have the funds to make that purchase, not everyone is in the same financial situation. TomoScore solves that problem by providing lenders with a way to identify high-quality borrowers, even if they lack a traditional credit score, by evaluating real-time cash flow attributes that other credit rating methods overlook."

"The Tomo team understands the 'cash rich, credit poor' customer segment better than anyone else operating in the space," said John Suh, TomoCredit Board Member and renowned business leader. "Despite having a wealth of bank transaction data, this community of upwardly mobile and highly educated individuals has historically been ignored by U.S. financial institutions. Tomo's B2B expansion — starting with the TomoScore — is going to change that by providing a host of new products and services for them."

TomoScore is a first-of-its-kind fintech product that offers lenders years of proprietary performance data and provides a full financial picture – including on-time payments for bills, regular income, monthly rent payments, and investments – of potential high-quality lenders who lack a traditional credit score, allowing financial institutions to make credit more accessible to worthy borrowers without added risk. 

About TomoCredit
Founded in 2019 by Kristy Kim, TomoCredit is transforming the credit industry, offering solutions to establish a robust credit history for those considered "credit invisible" – including new U.S. citizens without prior credit history, small and medium-sized business owners, students, and other young adults who demonstrate sound financial practices. Backed by top-tier investors including Morgan Stanley, Mastercard, and Barclays, TomoCredit has enabled 3.5 million individuals to access credit. 

Through its innovative TomoScore system, TomoCredit utilizes real-time, cash-flow based performance data as an alternative to traditional credit scores. TomoCredit is now providing its proprietary TomoScore system to businesses and financial institutions seeking to evaluate the creditworthiness of high-quality borrowers who may not have a traditional credit score. 

SOURCE TomoCredit