Getting rid of credit card debt can be time consuming. Counting down is one way to potentially speed up the process.
Tally consolidates your credit cards into a single, low-interest line of credit so you only have to make one payment, saving you money on interest and fees. The company has been around since 2015 and has received a lot of praise from customers who have used it to manage their credit card debt. Tally has a score of 4.3 out of 5 – excellent – based on more than 550 reviews Trustpilot, with a rating of 4.5 out of 5 from 17,000 reviews on the Apple App Store.
Tally has a few different features, but they all add to the company’s core promise of saving people money and getting them out of debt faster. The company estimates that the average member can save $ 4,185 over five years.
How does Tally work?
When you sign up with Tally, the company examines your credit history to determine if you qualify for a line of credit. If you’re approved, you’ll get a fixed line of credit that will automatically pay off your credit cards. Then, rather than paying off those cards every month, you pay off Tally – ideally at a lower rate than your cards. For example, rather than paying 20.99%, 18.49%, and 17.99% on three different credit cards, Tally will analyze your credit to determine if it can offer you an offer with a lower interest rate for. to save money. The APR you’ll pay with Tally is 7.90% to 29.99%.
Tally membership comes in three different packages:
- Basic members: This only applies to those who are not approved for a line of credit. In this situation, members can still access features that help them develop a plan to attack their credit card debt.
- Basic membership: Basic membership is an introductory option that offers a line of credit, and you can also consolidate all of your different card payments into one bill known as Tally Pays. The app will automatically make your payments on time and calculate how to save interest charges by tackling the card with the highest APR. There is also a handy late fee protection tool. If you haven’t made your payment a few days before it is due, Tally will make sure you take care of it.
- Account +: Tally + costs $ 300 per year and includes two key things that make it more attractive than the base option. You get a bigger line of credit, which can make a difference if you’re trying to deal with oversized debt. Tally + members can also benefit from an APR discount. After making 12 consecutive minimum payments, the company claims the average APR is lowered by 4 percentage points.
Who is Tally suitable for?
Tally is especially good for anyone who has significant credit card debt but still has a relatively good credit rating. In most of the cases, you will need a minimum credit of 660 Goal to benefit from a larger line of credit and larger APR discounts. There are a few exceptions, however, and the company can sometimes find opportunities to help people with a credit score of less than 580.
It’s also a great solution if you’re struggling to meet the due dates of multiple credit cards. Even the free membership without a line of credit offers valuable features to help you develop a strategy for paying your bills.
The best way to see if Tally might be right for your finances is to use the debt repayment calculator on the company website. By sharing a few pieces of information – your credit score range, your existing balances and APRs, and your most recent payment – you can get a realistic idea of ââhow much the business could help you save. You do not need to share your personal details to use the calculator. If you decide to sign up for the service, the company automatically performs a smooth credit check, so you won’t have to worry about hurting your credit score.
Tally Conditions and Fees
Tally does not charge any fees such as origination fees, balance transfer fees, over limit fees or late fees. You will pay interest on your line of credit and the variable APR varies with your credit and can go up or down depending on market conditions. If you choose the Tally + subscription, you will pay $ 300 per year, but the charges come directly from your line of credit instead of your checking account.
If you pay the $ 300 for a Tally + subscription, it renews automatically each year, or you can choose to upgrade to a basic subscription. Once you have paid off your Tally Line of Credit, you can close your account.
Advantages and disadvantages of the Tally app
As with any financial decision, you will need to carefully consider the pros and cons of joining Tally and accessing a line of credit. Be sure to weigh these pros and cons while doing the math to determine if Tally is right for you.
- No origination, delay or balance transfer fees
- Ability to get out of debt up to twice as fast and save thousands of dollars in interest
- Automated payments to avoid late fees from your credit card issuers
- Consolidates all of your bills into one monthly payment to eliminate confusion
- Transparent approach to estimate potential savings
- Not available everywhere – if you live in Maine, Montana, Nevada, Vermont, West Virginia or Wyoming, you will not be able to get a line of credit
- A minimum credit score of 660 is required for larger lines of credit, although the company also works with scores as low as 580
- $ 300 annual fee to access a larger line of credit and greater discounts with Tally +
- Not designed to help you avoid more debt in the future; you will need another budgeting tool to help you put collateral in place to avoid falling back into the debt trap
How Tally Stacks Up To Personal Loans And Balance Transfer Credit Cards
If you are considering using Tally, you are probably also considering applying for a personal loan or taking advantage of a balance transfer offer. Here’s a look at how Tally compares to these other two options.
Tally vs a personal loan: The best personal loans have APRs that start below 7.9% Tally, so this could be a cheaper option for paying off all of your credit cards. However, there are several reasons why Tally can beat a personal loan. First, there is no setup fee for Tally’s line of credit. Some personal loans have origination fees of between 3% and 6% of the loan amount. Second, Tally’s line of credit is specifically for credit card balances, nothing else. With personal loans, it can be tempting to use some of that money for other expenses. Some of the best personal loans also have higher minimum credit score requirements than Tally.
Tally vs a balance transfer offer: Determining if Tally is a better option than transferring your balance to another credit card with a competitive 0% introductory offer from TAP relies on analyzing some numbers for your personal situation. Let’s say you have $ 10,000 in credit card debt and a balance transfer offer comes with a 3% fee. In this case, your fee is $ 300 – the same number as the annual Tally + subscription fee. If the credit card charges 0% APR for the first 12 months and you have a dedicated strategy for paying it off within that time, you’d better use the credit card. Some balance transfer offers have even longer introductory periods (up to 21 months), giving you more time to pay off your debt without additional interest charges.
The bottom line
In a world teeming with quick deleveraging offers, Tally presents itself as a seamless option with no hidden fees and a user-friendly approach that aims to help those who have struggled with credit cards.
Depending on the amount of your credit card debt, Tally could be an inexpensive solution to help you save money and clear those balances faster. Be sure to consider all of your options, however. A personal loan or a balance transfer offer might be more appropriate for your personal needs. Either way, once you’ve gotten rid of your existing credit card debt, educate yourself on the best way to budget to avoid falling back into the routine of overspending.