Tymit Review – Next Generation Credit Card With Added Flexibility

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Summary of Tymit Review
Tymit is one of the first online-only credit cards which seeks to disrupt the current industry. There are a fair few benefits to its offering, such as greater visibility on projected payments and the ability to create customised repayment plans for each purchase. The fee schedule also looks to be pretty good for a credit card. The card itself is easy to use and also involves only a soft credit check, which only reads your record and does not add to it. Some of the downsides are a lack of contactless integration and the lack of Direct Debit for repayments. It also remains to be seen if the customisable features can be easily replicated by current credit cards. Currently there is a £15 account opening bonus at Tymit, please see further down this review for more details.

What is Tymit?

Pronounced ‘time it’ and conceived in 2017, Tymit was one of the first online app-based credit cards. This industry arguably was ripe for some kind of new entrant. Previously credit cards were issued only either via your bank, or specialist companies such as American Express or MBNA. Availability was restricted to relatively few participants and especially in recent years there were few reasons to go for one ahead of another – most worked in the same way.

There were also some structural downsides to the industry. Most cards charged some quite unfriendly fees for late payments. Whilst many offered interest-free periods, they also came with very high interest rates outside of that. It was a slight conflict of interest here, as a good customer who paid a small bill on time did not generate revenues.

Tymit was a technology-based solution which offered users much more control over their card. It allowed for things such as setting up payment plans for a specific item and clear analysis of the interest that was to be charged. Management of the card runs solely on app and there is no website to log in to.

Tymit Sign Up Offer

Tymit offer a generous sign-up whereby anyone opening a card and spends a minimum of £1 gets an instant £15 credit. To get yours simply download Tymit from the app store and when you make the application use friend code SIMONL8857 – ensure it is entered as it is unsure whether the incentive credits if you leave it blank.

Once you have signed up, you’ll be able to see your virtual card which contains all the details you need to start spending. The easiest way to spend £1 is to simply add your card to Google Pay which pre-authorises £1 and returns it instantly. This counts as spend as far as the promotion is concerned and you will receive the £15 instantly. Alternatively, you can simply purchase Amazon gift vouchers.

Is Tymit profitable?

Tymit is a trading name of Tymit Ltd. The last accounts were filed in October 2020 and cover the period to 30 June 2020. There is not much information to be gleaned from these accounts apart from at this early stage the company is loss-making. Tymit raised £4m in 2019 and it appears that half of this cash was paid. It does seem that the coming years will be all about user acquisition for Tymit and losses will continue.

Tymit Operating Model

Tymit operate differently from other credit cards. Whilst you will still receive a physical card in the post, all of the administration is done via the application. This is actually much quicker than logging into a website, as if you have a supporting phone the login can be via fingerprint.

To get a card, you need to download the application and apply online. As it is for a credit-related product you will need to provide identification, proof of address and some indication of earnings. Tymit perform a credit check on you, but this is a soft search only. This means that records are only viewed and not added to: applying for this card does not impact future credit history.

Approval is instant in many cases. When this happens, you are assigned a virtual credit card – basically a picture containing the card number, expiry date and security code – all you need to get shopping. You can also order a physical card for delivery, although if you are using the Tymit card for online purchases only, this is not necessary.

Using the Tymit card is no different from using any other credit card. You simply give the details in the same way. Currently this is by card details only. At the moment the card cannot be linked to Google/Apple Pay for contactless payment.

Purchases made appear immediately in the Tymit account. For each purchase, you get 3 months interest free credit. You can also arrange to pay back each purchase in equal instalments of 3 to 24 months. The application will create a personal payment plan which details fully the amount paid and the interest charged. There is a good level of flexibility here. Transactions can be grouped together into different sets, and payments made towards them. You can also see projected payments and interest for plans before committing to them. For comparison, the APR on the card is 14.9%, which compares pretty favourably to others.

Tymit also charge no fees where other credit card providers might. There are no fees for exceeding the credit limit, late payments or returned payments for regular users. If you are persistently late in paying, they do reserve the right to charge.

Currently settling account works by bank transfer only.

Tymit Review Pros:

  • Tymit offers a better level of flexibility than standard credit cards. You can choose to spread payments out over a period of up to 36 months and get a projection of the all-in cost including the credit charge.
  • There is currently a free period of interest for 3 months – that’s pretty useful if you wish to spread payments without interest.
  • There are no fees for late payments, or exceeding the credit limit as long as you do not make a habit of it.
  • The 14.9% interest charge for purchases compares pretty well to other cards.

Tymit Review Cons:

  • Settling the monthly payment is not possible by Direct Debit. This is a standard feature of other credit cards which ensures payment deadlines are not missed.
  • Other credit cards can have different benefits – for example, American Express offers payment protection specifically for purchases on that card.
  • Lack of integration with Google Pay or Apple means another card to carry if you wish to use it when out.
  • Due to soft credit checks, card limits may be lower and there does not appear to be a way to get it raised. Cash withdrawals are discouraged and come at a low 200GBP/month cap.

Conclusion of Tymit Review

The credit card industry was ripe for some kind of disruption using technology. Tymit may be the first of many challengers. The card is easy to apply for and use and comes with a handy 3-month interest free period. Further product upgrades may see this become a really useful card in future.

Disclaimer: This Tymit review represents my own opinions only and should not be substituted for advice. More information on this card can be found on the Tymit website (http://www.tymit.com). Credit cards are not suitable for all users, so please consider your own circumstances before applying.

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