Trying to decide which one of your credit cards to pay off first or pay the most on can seem like putting together a jigsaw puzzle.
Should you pay the one with the highest interest rate first?
Or should it be the one with the highest minimum payment? What about lowest balance?
With Tally, you don’t have to worry about deciding how much to pay for each credit card. Tally crunches the numbers and sends the most efficient payment to each credit card.
Jason Brown, Tally founder and CEO told TechCrunch in an interview, “There’s an interesting choreography between man and machine. Humans are capable of logic, but their financial decisions are often driven by emotion.”
In this article, you’ll learn what exactly Tally is and if it’s for you.
- Helps you pay down your credit card debt faster
- Get multiple credit cards organized in one place
- Never pay late fees again and get help lowering your APR
What Is Tally And Who Is It For?
Tally is a mobile app (currently available for iPhone and Android) that manages the process of paying down your credit cards. It figures out which cards have the highest APRs and uses a Tally line of credit with a lower APR to help you save money and pay down your credit cards faster.
Tally does more than just pay down your credit cards. It ensures you always pay on time, so you don’t rack up late fees. Plus, you’ll save on interest charges for credit cards that have higher APRs than Tally’s line of credit.
Tally is for anyone who wants to get out of credit card debt faster and needs help keeping up with all of their credit card payments (by helping you figure out which ones to pay down first). To qualify, you currently need at least a 660 FICO score.
Tally will also look at other aspects of your credit profile as part of the qualification process.
The application process is a soft credit check so it won’t impact your credit score. There are no origination fees for the credit line. All you pay Tally is the interest charged when the line of credit is used to pay down your credit cards (Based on your credit history, your APR will be between 7.9% – 19.9% per year. Similar to credit card APRs, it will vary with the market based on the Prime Rate. This information is accurate as of July 2018.)
If you’re already paying your credit cards in full each month and not incurring fees, Tally’s algorithms won’t do much for you. However, you can still use the app to manage payments for all of your credit cards each month. (Note: In order to get the credit card management features of Tally, you must qualify for and accept a line of credit with Tally).
If you have a 0% balance transfer offer available, that is a better choice than Tally since you won’t incur any interest charges. But it should be noted that late fees and (the resulting) penalty APRs can still exist with those offers, so for that reason (and if you don't have access to a 0% APR offer), Tally can be a good choice.
How Does Tally Work?
Upon approval, Tally extends a line of credit to you. The amount is not unlimited and depends on your situation. The credit line is used to pay your credit cards. As long as your cards are set to "Tally Pays", you no longer make payments directly to the credit card companies yourself.
Instead, you pay down your Tally line of credit, which is linked to your checking account.
Using the credit line, the Tally app directs payments to the highest APR cards while lowering payments to other cards, maximizing use of funds.
Brown mentioned in a press release, “When you combine powerful algorithms with the ability to do work on behalf of the customer, you can really help millions of people.
Whether credit card users carry balances or not, research has shown that they find managing their cards as stressful as awaiting major medical test results, and that’s not what credit cards should represent.
At Tally, we believe credit cards should be empowering and more like a passport, not a burden, so we set out to provide a simpler, smarter way to manage them.”
Tally’s line of credit interest rate should be lower than at least one of your credit cards and likely more. Click here to learn more about what Tally charges.
You can still use your credit cards as usual. However, it wouldn’t be a good idea to increase your spending just because you have a Tally credit line.
That will only get you into further debt and defeat the purpose of using Tally, which is to help you get your credit card debt under control and save on interest and fees.
Tally works with major credit cards including American Express, Bank of America, Capital One, Chase, Citibank, Discover, U.S. Bank, Barclays, and Wells Fargo.
They also now work with major retail/store cards. They are: Amazon, American Eagle, Best Buy, Home Depot, Macy's, Sears, TJ Maxx, Target & Walmart.
What States Is Tally Available In?
Tally isn’t currently available in all states. But they are available in Arkansas, California, Colorado, Connecticut, Florida, Illinois, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, Texas, Utah, Washington, Wisconsin, and Washington DC.
They are hoping to have most states added by the end of 2018. If your state isn’t listed, you can get a notification by signing up for the Tally app.
In addition to helping you eliminate your credit card debt, Tally also can help you automatically save money. Like other automatic savings apps, Tally will automatically transfer that amount from your checking account to an FDIC-insured savings account.
The difference is that Tally offers this service for free!
Furthermore, Tally has a rewards program that rewards you with points for saving or doing other actions. You can redeem these points for giftcards, or even use them to donate to a charitable cause.
Trying to juggle multiple credit cards and keep up with payment due dates is just one card away from missing a payment and incurring a late fee.
Talley can help ensure you don’t miss another payment.
If you are paying interest on high rate cards, you can reduce your interest rate by getting approved for a Tally credit line and save big on interest charges.
How many credit cards do you have? We'd love to hear your thoughts on Tally in the comments below!
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Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.