Trying to decide which one of your credits 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 Talley, 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 Talley is and if it’s for you.
What Is Tally and Who Is It For?
Talley is a mobile app (currently only available for iPhone) that manages the process of paying down your credit cards. It figures out which cards have the highest APRs and uses a Tally loan with a lower APR to pay down your credit cards.
Basically, you exchange one form of financing for another with a lower interest rate.
Talley 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 Talley’s credit line.
Talley is for anyone who needs help keeping up with all of their credit card payments and trying to figure out which ones to pay down first. To qualify, you currently need at least a 660 FICO score.
Tally will also look at your income to debt ratio as part oft he 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 in fees is the APR interest charge.
If you’re already paying your credit cards in full each month and not incurring fees, Talley’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.
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 not everyone has that option and for those, Tally can be a good choice.
How Does Tally Work?
Upon approval, Tally extends a line of credit to you. The amount depends on your credit profile. The credit line is used to pay your credit cards. You no longer make payments directly to the credit card companies.
Instead, you pay down your Talley credit line, 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 credit line should be lower than at least one of your credit cards and likely more. The credit line APR is 7.9% - 19.9% per year. The rate is not fixed and adjust based on the Prime Rate (as of June 2017).
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.
Charge cards, retail or store cards are not supported.
Which States Is Tally Available In?
Tally isn’t currently available in all states. But they are available in California, Florida, Illinois, Massachusetts, Michigan, New Jersey, New York, Ohio, Texas, Washington, and Wisconsin.
They are hoping to have all 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.
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!