Tally Reviews - What Is It?
WARNING: DO NOT USE Tally Until You Read This Review!
Is it a Scam? Does It Really Work?
Tally is an iOS financial application that is meant to help you gain control of your credit cards by allowing you to make strategic payments based on interest rates and balances. The app promises to save your money on interest payments but does it really work as well as claimed let's find out. The app was started in 2015 by Jasper Platz and Jason Brown, two entrepreneurs with backgrounds in technology and venture capital. Their company is based in San Francisco and it managed to raise $15 million in funding in 2016. TechCrunch article reported that investors liked Tally because it was a solution for everyday problems faced by consumers. As we have pointed out in other articles, there are more people who carry balances on their cards than those people who don't use their cards and just pay off their balances. Is the service like Tally as beneficial as said? We decided to figure out how the app works, how much it costs and whether it is worth your attention at all. For this purpose, we researched the information available on its website. Let's see how Tally works.
The problem addressed by this app is common. You have probably got three or four credit cards, each of which has its own balances, credit limits, due dates and APR's. If they are not on auto-pay and they do not send you due date notices then you are at a serious disadvantage. This may end up costing you interest rates ranging between 15.99% and 24.99%, as well as late payments - between $35 and $37. Besides, some credit cards have a "penalty APR", which presupposes to send your APR to 29.99% either for six months or permanently if you have at least one late payment. Tally is claimed to be a good solution to this problem. You will have to tell them which credit cards you have and allow them to access your accounts. They study your balances, interest rates and monthly payments. Then they determine a repayment strategy that is promised to save your money in the long run. You will need to open a line of credit with the company to become their client.
Customer Reviews - Does Tally Really Work?
It is important to discuss the Tally line of credit before we move to the real customer reviews available online. Generally speaking, a "line of credit" is a term that means that a financial company has approved you to borrow a definite amount of money that you can use as frequently or as seldom as you want. Your major task will be to repay the line of credit. A credit card is a kind of line of credit. So, Tally offers a very similar credit-card style financial product. But how exactly can it help you? Let's take a look at the basics of how this works. Tally app performs a credit check to analyze how you have been doing with your credit cards, current/past loans, and other financial products. You won't be approved with credit scores below 660, though. But if you qualify for a Tally line of credit, they will inform you how big the line will be and, according to their site, the interest rate will be from 7.9% to 19.9%. Once you are approved, the app will use that line of credit to pay off your credit card balances. Then you will have to pay Tally each month.
What's the use of this new line of credit? Let's say you have got a credit card with a balance of $4,000 and the APR is 19.99%. You have high APR because of your low credit scores, hence the. Now your scores are better: beyond 720. You ask your credit card company to reduce your APR but they refuse to do so. Your interest payments might reach $66 a month if your average daily balance is $4,000. You want a lower rate and you don't want to pay so much money each month. Tally provides you with good credit increasing your chance to get the lowest rate of 7.9%. This could save you more than $40 a month in interest payments. But Tally intends not just to switch your debt to them. According to the company's Head of Growth Mark Powlen, they want not only to reduce your debt but to build responsible financial habits. Tally's algorithms will probably ask you to pay more than a minimum payment determined by calculating 1% of your balance plus interest payments. In this way, paying more each month will help you waste less money on interest payments and pay down your debt faster. For instance, if you have the daily $4,000 balance at 7.9% and apply a minimum payment, then you would pay about $26 a month in interest. Tally designed a payment that is able to help you to pay off your $4,000 balance in 2 years. As a result, your interest payments would decrease over time slowly and more money would go to your debt. But is this app really as beneficial as described on the official website? The best way to answer this question is to take a look at what real customers are saying about their experience of using it.
"I am not satisfied with tally at all. You need a minimum credit score of 660 to get approval for a line of credit. If you don't have that kind of a score don't waste your time with this option. I was surprised a lot when I spoke to the company's representative over the phone. The guy could not provide any details on how balances are paid down or off. He just said that you can determine how you want your debt to be paid by using the line of credit. This is a red flag for me."
"Tally is a very mysterious company. Whenever you call their customer support you can never get exact answers. Thus, they say that your APR is going to range from 7.9%-21%. The difference is terrific and a potential consumer needs to know what to expect from the service. They seem to have a formula which I failed to find neither on their official website nor from the representative over the phone. Since I don't have their formula on how the APR varies I can't really comment on that app. I decided not to risk."
"Tally has their minimum fico score of 660 and since they never say for sure what sort of APR you are going to have, I think you are going to be in their higher APR bracket. They also take into consideration your debt and payment history. This app is not as great as it may seem. I regret addressing this company. Now I have to pay off not only my debts but also make payments to Tally. Be wise before proceeding with this offer. Personally I cannot recommend it. I still have debts."
My Final Summary
Based on our research, Tally's credit card repayment plan presupposes buying your balance from the credit card company and providing you with a lower interest rate. It differentiates from other refinancing lenders with the fact that it makes payments for your debts on your behalf. It tries to pay your debts more quickly. However, there are certain downsides. Tally may not be the best option for those with credit scores around 700 or higher, as these people can get a card with a 0% interest offer on their own. Remember that the major goal of any financial organization is to earn money. Tally is not an exception and you will need to pay for their services too. The company will help you to pay off your debts faster but they will take a significant sum of money too. Taking into account all pros and cons of Tally I don't think it is right for you. I would recommend you checking out other options over there.
Tally Pricing and Rates
There is no information on Tally's official website as to how much their services cost. They promise to provide you with the credit line with the APR of 7.9% - 19.9% per year. This is not a fixed rate. You can still use your credit cards. But it wouldn't be a good idea to increase your spending because you have a Tally credit line. Tally works with major credit cards including Bank of America, American Express, Capital One, Citibank, Chase, Discover, Barclays, U.S. Bank, and Wells Fargo.