Tymit Digital Credit Card

As far as I can tell, you select an individual purchase, select how many months you want to pay it across and I assume it’s smart enough to schedule it all for you.

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Yea my reading of it was the same as that.

E.g. £2k credit limit.

  • Spend it and pay it back at month as normal (although 42 days interest free rather than the usual 50+, but doesn’t ultimately make a huge deal of difference!)

OR

  • Split some/all of it over a longer timeframe but retain the month to month interest free on the rest of it.

So spend £1,500 on a big purchase and opt to pay that over 18 months at whatever interest rate it offers you (or your standard rate). The remaining £500 available credit can be used month to month and will not incur charges as long as whatever is spent from THAT £500 is paid in full each month.

Appears the only interest-free is either for month to month non-plan spending repaid in full, or for installment plans of 3 months on some purchases - will be interesting to see how they determine that. My guess is “bigger” goods e.g. the household example shown, tech etc.

On a traditional card, you wouldn’t have that type of flexibility and would need to either open another card to get a 0% promo or rely on repeat offers. I believe Halifax Flexicard is essentially the same thing.

Curve were talking about ‘Curve Credit’ and is also essentially the same thing (they’d provide the credit over x months and refund your initial card), but it’s not launched yet.

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Also the non-UK spellings on the website. “Airplanes”, “unauthorized” make it seem like a bit of a transplant from elsewhere. Is this a subsidiary of a foreign company? Not that I have a problem with that, I just like to know the background of financial companies I use.

The lack of proper quotes ("" instead of “”) is also irritating, but not a deal breaker. :joy:

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I’m not saying I’m sceptical but they have no twitter account although I found this

image

It seems to be run by 1 person as well, and is registered to a small flat in London.

Yeah saw that but there’s 6 of them listed as employees on LinkedIn. And they have a wework office thing. Or had

Used the link above.

Use my link to keep the love going

My code if anyone wants to use.

One reason why you shouldn’t is that it is Visa, which is slightly more expensive for foreign currency than Mastercard. Difference is about 0.1%.

What if they just arbitrarily decide not to offer you a payment plan and you’re stuck making a full repayment and you cant afford to?..

‘Full repayment’ would be as per terms of the card, so a few % a month minimum payment is all that’s required, or say £25.

That would incur interest, but any plan longer than 3 months seems to incur interest anyway.

It would be good for them to clarify if every transaction is eligible though - I imagine any transaction would be (subject to credit limit) as otherwise you could just leave it on ‘main plan’ balance and defer paying anyway. you just wouldn’t get interest free for day to day purchases, so the answer will make some difference.

This concern was one I raised with curve about their instalment proposition too

Facebook advert - nothing that’s not on the website to be fair

image

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Eww, I’m not a fan of the design on the back of the card. Looks very cluttered.

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Seems like a good product.
A bit like PayPal Credit, but with a physical card.
I’m certainly interested.
Please feel free to use my referral link: https://tymit.us18.list-manage.com/track/click?u=93636a5451d11fcc05956748e&id=76018b4368&e=81d0dd98e8

Used the link further above. Mine is here if anyone is signing up.

Just had an email from them, essentially Summer 2019 and running over the features/benefits etc… Going to see if they’ll tell me where I am in the list and/or expected wait time.

Hi,

Thanks for joining the Tymit waitlist, your first step towards a better, smarter credit card. In this email we’re going to give you some more information about Tymit and explain the next steps.
Image with an example of a Tymit credit card

When can I get my Tymit card?

Tymit will initially launch by invitation only. We’ve already had a great response to opening our waitlist, so we anticipate rolling out invites to apply for the card on a monthly basis, starting this summer. If you want to get your card as early as possible, you can work your way up the list by encouraging your friends to sign up using the links at the bottom of this email.

In the meantime, we’ll keep you in the loop with regular updates ahead of the launch, and look forward to welcoming you to your new card soon!

What’s wrong with traditional credit cards?

Traditional credit cards haven’t changed much since they first appeared in the 1960s. The banks that issue them rely on old technology, and because they’ve had a monopoly for so long, they rarely give much thought to the customer experience. Consumer expectations of digital apps and services have moved on, but most banking apps are still clunky, offering limited functionality and poor usability.

And the credit on offer isn’t without problems. Traditional credit cards can be expensive, giving customers very little control when they need more time to spread costs and pay off their balance. On a traditional card, the only way to avoid paying interest is to pay off in full every month - if you carry any sort of balance forward, you’ll be charged interest on the outstanding amount and any future purchases until you pay in full.

Credit cards have resisted the flexibility and transparency of modern technology for too long - so at Tymit we decided to do something about it.

What makes Tymit a better kind of credit card

A better app and more insightful data about your spending

Our app will bring you a modern mobile experience: real time notifications (both when you spend and when merchants put ‘holds’ on your credit); spend categorisation; detailed information about purchases, including mapping transaction locations; chatting with customer service from your mobile; and much more. We’re excited about innovating in this space, and we’ll be developing new features and services as we go.

A fundamentally different approach to calculating interest

Tymit computes interest differently to other cards, giving you more control and saving you money. By default, everything you buy with Tymit is payable in full during the next month with no interest.

But you can also choose to spread the cost of any individual purchase across 3 to 24 months within the app, and then pay interest only on that purchase. You can also ‘bucket’ purchases together, enabling you to easily track and spread the cost of multiple expenses of a same kind, such as a holiday or Christmas shopping. Any other purchases payable on the next month will stay interest free. And if you need to, you can adjust the payment period for any purchase easily from within the app. Simply, with no tricks and no fees.

A totally transparent approach to costs

The Tymit card is more transparent than traditional credit cards. Interest costs (if any) are clearly quoted in GBP when you choose a payment plan for a purchase or ‘bucket’. You can even simulate a new purchase to see what your future monthly payments would look like. We take the uncertainty out of using your card, enabling you to make simpler decisions about your spending.

A clear commitment to privacy and data security

We’ll always keep your personal information safe, and we’ll never sell your data on to a third party. We’re not a bank or an advertising-driven tech company - we’re single-minded about providing you with the best possible credit card experience.

About Tymit

Our founding team are based in West London, and have a wealth of experience working for large banks and credit card issuers.

Tymit LTD is supervised and fully authorised by the Financial Conduct Authority (FCA). We’ve spent over a year working with the regulator, making sure our innovative product is fully compliant with all legal requirements.

Questions, comments, or bright ideas?

Please write at support@tymit.co.uk we would love to hear from you.

Kind regards,

The Tymit Team

I would love to know how they think this can be made profitable. The cost to manage the risk of the open credit lines is just too expensive to be profitable on interest levels of a loan.

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The back of that card looks great.

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Depends on the risk of customers - if they are going for vanilla customers with perfect history there should be very very few defaults, and those that do default will go on to pay fees etc.

I have asked what kind of adverse they would consider and that “subject to credit scoring” is what legacy banks use and isn’t transparent or fair to customers. IMO it should be clear who they WON’T take (can’t say who they will take, until a credit check, of course), similar to mortgages - e.g. If you have a default in the last 3 years, go away. If you have a bankruptcy on file, go away. Hardly any mainstream provider gives that for unsecured lending (but they all do for mortgages, as brokers would kick off otherwise)

Banks make so much money as they typically charge 19%+ - investment/funding is probably a few % at most so there is plenty of margin in theory, just look at the bankers bonuses!

Halifax is about 6% for a similar card IIRC - they obviously have the scale, but Tymit being digital should have lower running costs per card and no 0% offers/branches/legacy IT etc.

Tymit show APRs from 12%, that’s fairly expensive for anyone actually paying interest (e.g. any installment plans over 3 months) when you consider the amount of 0% products available to the most savvy consumer.

If a lot of people sign up and ONLY repay in full or only use 3 month plans, it could get tricky (given lower interchange fees these days) - but that’s where I would then expect targeted offers to come out to people that are a good risk. Spend £2k on this new laptop, pay over the next 24 months at just 9.9% APR. Same with retrospective offers prompting people to pay over time (within TCF principles of course!)

That’s not a brilliant deal by any means, but it’s cheaper than just leaving it on a bog standard non-promo card and less hassle than opening a new 0% card or applying for store finance etc.

If their cost of funding is even as high as 5%, assuming no defaults, that’s a pretty hefty markup.

I’m not sure I’ll actually get a card until my adverse drops off next year, but I’m very interested to see how this all pans out.

its not so much the default rate but the cost of holding capital, if the person has a limit of 7k but only spending 1k you still need to hold capital against the 7k which is why credit card APRs are so high

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