The average American has four credit card accounts, and average credit card balances are around $6,200. It’s not surprising that many people are looking for ways to pay down their debts. But figuring out how to go about it can be daunting.
Do you pay down the highest balances first? Focus on the highest interest rate cards before moving on to others? Or should you just divide your money equally among every card you owe? The Tally app makes answering those questions easy by doing it for you.
Sound good? Here’s what you need to know to make an informed decision about whether Tally is the right financial tool for you.
Pros
Cons
Automates your credit card payments for faster, easier debt reduction
In some cases can make your debt reduction more complicated
Lets you make all credit card payments with a single payment each month
Requires a credit scores of 660 or higher to qualify
Offers a potentially lower interest rate line of credit for paying down debt
Might position you to run up more debt if you’re not careful
About the Tally App
Tally calls itself an “automated debt manager.” Technically, it’s a credit card consolidation app that also builds in some account management functions for your credit card accounts. Using the app is pretty simple:
Download the app for free on your iOS or Android
device. Provide your name, address, birthday and estimated credit score range.
Connect your Tally-supported credit cards to
your account. You can scan the cards or enter them manually.
Wait for Tally to analyze your credit history
and credit card usage—using a soft credit pull that won’t affect your credit
score.
If you qualify, receive a line of credit with a
lower interest rate that you can use to start paying off your credit cards.
Add money to your Tally account that it will use
to pay off cards if you want.
Sit back and watch while Tally does all the
various calculations to figure out which cards to pay off fastest to save you
money based on interest rates and how much you owe.
Tally App Features
Tally is made for people who have multiple credit cards and are struggling to pay them off. The app monitors your balances, interest rates, and due dates for you. If you qualify, it will extend a line of credit to help you consolidate part of your debt at a lower interest rate. And if you opt in to its Tally Pays option, it will pay your credit card bills for you, calculating the best way to save you money based on the interest rates of your individual cards and your line of credit.
The app
claims that members have an average lifetime savings of $5,300.
Credit Card Manager
If you have more than one credit card, that typically means managing multiple apps or online accounts to make sure you’re paying your minimum balances on time each month. With Tally’s Credit Card Manager, all your credit cards are in one place (as long as they are supported by the app), making it easier to manage and pay your debts. You can view the important details of each individual card within the app.
Line of Credit
If Tally can offer you a Tally Line of Credit with an interest rate lower than what you’re paying on your cards, it does. Tally will use your line of credit to pay off as much of your debt as possible. If the line of credit you are extended is too low to cover all of your existing credit card debt, it will prioritize which balances to pay down first. After that, you pay one bill to Tally each month to repay the line of credit extended to you.
If
your line of credit covers all of your existing debt, you simply pay Tally the
interest charges for using the line of credit instead. If you have a remaining
line of credit, you can have Tally use that credit to automatically pay your future
credit card bills. This is a revolving credit line. It renews as you pay it off
so you can continue to use it.
To qualify, you need a FICO score of 660. The app offers lines of credit with an APR between 7.90% and 25.90% (as of August 14, 2020). The APR varies depending on the Prime rate.
Tally
Pays: When set to “Tally Pays,” Tally will make credit card payments for
you using your Tally line of credit. You pay a single bill—to Tally—each month.
Tally dispenses payments to your credit cards based on what will save you the
most in the long run when it comes to interest. It will send payments two
business days before your card’s due date.
You Pay:
When set to “You Pay,” Tally will remind you several days before your due
dates, with suggestions for how much to pay toward each card. You can then pay
all your bills through the Tally app using your linked checking account.
Tally Advisor
You can only use Tally Advisor if you qualify for the line of credit. Tally uses the information about your accounts to understand your debt and your spending habits. Then it makes payment recommendations to help you pay off your credit card debts faster. With this feature, you can set goals and track your progress, and use their calculator to see how much faster you can reach your goals by increasing your payments each month.
Late Fee Protection
Tally keeps track of your credit card accounts and ensures your minimum monthly payments are made to avoid late fees. If you didn’t already make a minimum monthly payment, Tally makes one within two days of the due date. You pay Tally back, plus interest accrued. It will pay even if you’ve used your entire Tally line of credit. Your cards are automatically enrolled in this program, but you can turn this off.
COVID-19
Relief Program
Individuals who have been a Tally user for at least 30 days and are in good standing are eligible to enroll in the app’s COVID-19 relief program. When you enroll in the program, Tally will stop paying your credit cards and your next payment to Tally will be deferred. You do not need to provide any documentation or proof of loss of income to enroll. If your account is already delinquent, it will continue to be reported as delinquent to the credit reporting agencies.
Benefits of the Tally App
Easy Debt Management
One of the biggest benefits of the Tally app is
that it gives you an easier way to manage your credit card debt. If this app
works for you, you can simply make a single payment and know that your credit
card bills are being covered. Tally also offers a lot of features meant to keep
you on time with your credit card payments. That can help improve your credit
score over time. The Tally app might be especially beneficial for keeping up
with credit card payments during periods of short-term financial duress, such
as many people are experiencing during the coronavirus pandemic.
Affordability
Depending on the APR you qualify for with your
Tally line of credit, you could save quite a bit in interest fees. The app is
free to download and never charges any additional fees beyond your interest
rate.
Downsides to the Tally App
Spending
Perhaps the biggest downside to the Tally app is
that it doesn’t keep you from spending with your credit cards. It is easy to
continue adding to your debt rather than paying it off. You can take out a line
of credit with Tally and bring your credit card balances down, but if you’re
not careful, you could spend again and run up your debt. However, this is also
a risk with other types of credit card consolidation.
Complicated
Another downside to the Tally app is that things
can get complicated. You still get
statements from your credit cards, and you have to track what Tally’s paying
versus what you’re paying—if you’re paying anything.
For example, your Tally line of credit might
come with an interest rate that’s lower than some of your cards and higher than
others. In this case, you might not want Tally to cover payments on the lower
interest rate cards, and you’d have to pay those yourself.
Availability
The Tally app is not available to everyone: It’s currently offered in 30 states and Washington DC. If you live outside of those states, you can get on a waiting list to be informed when the app is offered where you live. Not all credit cards are eligible—Tally works with a limited number of banks and stores.
You’ll also need a 660 credit score to be
approved for a line of credit with Tally, which may exclude those who could
most benefit from their help. You also need to be over 18.
Other Debt Management Options to Consider
If Tally doesn’t sound right for you, there are other options to consider when it comes to managing credit card debt.
Balance transfer cards: These cards come with a low introductory APR—often it’s 0%—on balance transfers. That means you can move a balance from one credit card to a balance transfer card. Then, you can make payments on it over a certain period of time without paying any interest. It lets you pay off debt faster and cheaper.
$200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions*
Unlimited cash back on payments: 3% on Home, Auto, and Health categories and 1% on everything else after you make payments on your purchases
No annual fee
Combine the flexibility of a credit card with the predictability of a personal loan
No touch payments with contactless technology built in
See if you qualify in minutes without hurting your credit score
Great for large purchases with predictable payments you can budget for
Mobile app to access your account anytime, anywhere
Enjoy peace of mind with $0 Fraud liability
*To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions.
Card Details +
Debt consolidation loans: Debt consolidation loans provide funds to pay off other debts. Then, you make agreed-upon monthly payments on the loan. If you can get a loan with a low enough interest, it reduces the total cost of your debt. A single monthly payment can also help you stay organized and ensure you pay on time.
Is the Tally App Right for You?
The Tally app offers a service that can be
helpful for many people. If you’re struggling to manage your credit cards or
are likely to forget monthly payments, Tally can keep everything in line for
you. But, as with any tool, it’s important to do your research and understand
the details before deciding if Tally is right for you.
