Latest news with #KristyKim
Yahoo
27-05-2025
- Business
- Yahoo
TomoCredit Unveils TomoIQ: AI-Powered Financial Wellness Platform to Build Smarter, Inclusive Financial Future for Everyone
SAN FRANCISCO, May 27, 2025 /PRNewswire/ -- TomoCredit, the leading personal financial wellness platform, is proud to announce the launch of TomoIQ, a groundbreaking AI-powered financial assistant built to make smart, professional-level financial guidance accessible to everyone, regardless of income, background, or credit history. TomoIQ is designed to be more than just a tool—it's a judgment-free companion for individuals navigating the complexities of their financial journey. Whether someone is deep in debt, working to improve their credit score, or saving for their first home, TomoIQ offers personalized, real-time support with empathy, intelligence, and zero shame. "Access to financial knowledge shouldn't be reserved for the wealthy or those who already 'have it together,'" said Kristy Kim, CEO and founder of TomoCredit. "We built TomoIQ to level the playing field—because everyone deserves a chance to make informed financial decisions, no matter where they're starting from." According to Tomo's recent consumer survey, over 80% of customers report feeling "more comfortable" using AI for financial guidance than working with traditional human financial advisors. This significant preference highlights a growing trust in digital tools and the value customers place on accessibility, objectivity, and speed AI offers in financial decision-making. TomoIQ provides guidance on budgeting, debt management, savings strategies, credit building, and more. Unlike generic chatbots or static advice articles, TomoIQ delivers conversational, contextual insights tailored to each user's unique situation, with no judgment and no assumptions. Key features of TomoIQ include: Personalized financial guidance based on real-life questions and scenarios 24/7 access to information on credit, debt, saving, and budgeting Real-Time Financial Health Scoring using alternative data sources. Inclusive design built to serve underserved communities, including thin-file and no-file users Confidential and empathetic tone, ensuring users feel supported, not shamed "TomoIQ isn't just here to help—it's here to make professional financial insight accessible to everyone, not just the top 1%." Kim added. "Whether you're making your first budget or rebuilding after a financial setback, TomoIQ is in your corner, providing guidance that's smart, supportive, and truly accessible." About TomoCredit:TomoCredit is a mission-driven financial technology company committed to helping individuals, especially those excluded from traditional credit systems, build strong financial futures. With a user base of over 4 million, TomoCredit offers tools, education, and now, AI-powered support through TomoIQ, to empower every person on their financial journey. Media Contact:Camilla Guo941-993-7222camilla@ View original content to download multimedia: SOURCE TomoCredit
CBS News
22-04-2025
- Business
- CBS News
Why credit card interest rates are so high now (and what to do about it)
The U.S. economy is showing mixed signals this spring. Inflation is easing and is currently at 2.4% year-over-year (as of the latest reading), but it's still sitting above the Federal Reserve's 2% target rate. And, while interest rate cuts appear possible this year, the rate environment remains elevated for now. Meanwhile, the stock market has been volatile over the last few months. Credit card debt has been climbing in tandem as people struggle under the weight of higher prices, expensive debt and other factors, and it's happening despite today's high average credit card rates. According to the latest data, the average cardholder is carrying nearly $8,000 in credit card debt at a time when the average card rate is closing in on 22% . But why are credit card interest rates so high right now? It has a lot to do with where the economy stands, how the Federal Reserve sets rates and the way credit card companies manage risk. Find out how to start tackling your credit card debt today . Here are a few of the factors that are keeping card rates elevated right now. Perhaps the biggest reason for high credit card rates is the Federal Reserve's benchmark rate — as credit card APRs tend to rise and fall alongside it, experts say. "When the Fed raises its benchmark rate, borrowing costs increase across the board, including for credit card issuers," says Kristy Kim, a personal finance expert and CEO of TomoCredit. "Since credit cards typically have variable rates tied to the prime rate, any increase by the Fed is quickly passed on to consumers." The federal funds rate soared in recent years as the Fed worked to curb inflation, and credit card rates increased accordingly. But more recently, inflation has slowly inched downward toward its 2% target. Despite inflation easing, credit card APRs have stayed near record highs. So why is that happening? Kim notes that the Fed implemented modest cuts in late 2024, but "they haven't implemented substantial reductions yet, meaning prime rates and therefore credit card APRs remain elevated." Credit card issuers are often slow to pass along lower rates, especially when the economy is uncertain. They'd rather keep wider profit margins in case more borrowers start missing payments. Get help with your expensive credit card debt now . High delinquency rates historically lead to higher credit card APRs because lenders raise rates to offset the risk of missed payments. And, delinquency rates are rising, meaning more cardholders are 30 days or more behind on their payments. The New York Federal Reserve reports that 7.18% of credit card debt became 90 days or more past due by the end of 2024, up from 6.36% a year earlier. That's a sign of how hard it's become to keep up with debt, with roughly 48% of American cardholders relying on their credit cards to cover basic living expenses . "When consumers fall behind on payments, lenders will likely raise interest rates or keep them elevated to compensate for the losses," says Leslie Tayne, financial attorney. "When combining potential delinquency rates and missed payments with today's elevated federal funds rates, it's unlikely that credit APRs will decrease anytime soon, even if the economy improves." Today's high credit card APRs are also attributable to the way lenders assess risk. "Another key contributor to today's high credit card rates is individual credit behavior, particularly high credit utilization ratios and missed payments," says Kim. "When consumers carry large balances relative to their credit limits or pay late, issuers view them as higher-risk borrowers and often assign higher interest rates as a result." Kim recommends keeping your credit utilization below 20% and always paying your bill on time. "These habits not only help maintain a healthy credit score, but also signal to lenders that you're a responsible borrower, which can lead to better rates over time," Kim adds. A large credit card balance can make it hard to stay on budget and lead to higher interest costs over time if you can't pay it down. Here are some practical steps you can take to start lowering your credit card debt: Credit card rates remain high for several reasons, led by a high Federal Reserve benchmark rate. Even though the Fed has signaled rate cuts this year, they may not be substantial enough to bring down APRs significantly. Instead of waiting for lower interest rates, you may be better off focusing on bringing down credit card debt and considering lower-cost ways to borrow.
