Tally app review: Paying off credit card debt
Tally app review: Paying off credit card debt

Getting out of credit card debt can take a long time. Tally is one way to potentially speed up the process.

Tally consolidates your credit cards into one low-interest line of credit so you only have to make one payment, in an effort to save on interest and fees. The company has been around since 2015 and has received high praise from customers who have used it to manage their credit card debt. Tally has a rating of 4.3 out of 5 – excellent – based on more than 550 reviews on Trustpilotwith 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 up to the company’s main promise: to save people money and get them out of debt faster. The company estimates it can save the average member $4,185 over five years.

How does Tally work?

When you sign up for Tally, the company reviews 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 they can offer you a deal with a lower interest rate for to save money. The APR you will pay with Tally is 7.90% to 29.99%.

Tally membership comes in three different packages:

  • Main Membership: 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 tackle 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 various card payments into one bill known as a Tally Pays. The app will automatically make your payments on time and calculate how to save interest charges by going after the card with the highest APR. There’s also a handy late fee protection tool. If you haven’t made your payment a few days before it’s due, Tally makes sure to take care of it.
  • Count+: Tally+ costs $300 per year and includes two key components 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 tackle oversized debt. Tally+ members can also get an APR discount. After making 12 consecutive minimum payments, the company claims that 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 score. In most cases, you will need a minimum credit of 660 Goal to qualify for a larger line of credit and higher APR discounts. There are a few exceptions, however, and the company can sometimes find opportunities to help those with credit scores as low as 580.

It’s also a great choice if you’re struggling to meet the due dates of multiple credit cards. Even the free membership with no line of credit offers valuable features to help you develop a bill repayment strategy.

The best way to see if Tally might suit your finances is to use the debt repayment calculator on the company’s website. By sharing a few pieces of information — your credit score range, your existing balances and APR, and your most recent payment — you can get a realistic idea of ​​how much the company might be able to 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 soft credit check, so you won’t have to worry about hurting your credit score.

Tally Terms and Fees

Tally does not charge any fees such as setup fees, balance transfer fees, over limit fees or late fees. You’ll pay interest on your line of credit, and the variable APR varies based on your credit and can go up or down depending on market conditions. If you choose the Tally+ subscription, you’ll pay $300 per year, but the fees come directly from your line of credit instead of your checking account.

If you pay the $300 for a Tally+ subscription, it automatically renews every 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.

Benefits

  • No setup fees, late fees or balance transfer fees
  • Potential 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 your bills into one monthly payment to eliminate confusion
  • Transparent approach to estimate potential savings

The inconvenients

  • 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 bigger line of credit and bigger discounts with Tally+
  • Not designed to help you avoid more debt in the future; you’ll need another budgeting tool to help you set up safeguards to avoid falling back into the debt trap

How Tally Compares to Personal Loans and Balance Transfer Credit Cards

If you’re considering using Tally, you’re 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 it could be a cheaper option for paying off all your credit cards. However, there are a few reasons why Tally can beat a personal loan. First, there are no origination fees for Tally’s line of credit. Some personal loans come with 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 whether Tally is a better option than transferring your balance to another credit card with a competitive 0% APR introductory offer relies on calculating certain 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 figure as the annual fee for joining Tally+. If the credit card charges 0% APR for the first 12 months and you have a dedicated strategy to pay it off within that time frame, it is better to 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 full of quick debt deals, Tally shines as a transparent option with no hidden fees and a friendly approach that aims to help those struggling with credit cards.

Depending on how much credit card debt you have, Tally could be an inexpensive solution to help you save money and clear those balances faster. Be sure to consider all of your options though. A personal loan or balance transfer offer might make more sense 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 overspending routine.

Content Disclaimer: Tally paid for the creation of the content on this page. However, the information is based on our unbiased opinion and the vendor did not contribute to the review.

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