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Credit card debt is a downer. It’s easy to get into and hard to pay off. According to a recent study, 54% of households carry credit card balances month to month. But when it comes to paying off your debt, the good news is there are a lot of resources to help you. One of those resources is an app called Tally. Tally enables you to pay off your credit card debt faster and with less interest. In this Tally review, I’ll tell you everything you need to know so you can determine if Tally is right for you.
What is the Tally App?
Tally is a debt consolidation app created in 2015. Tally helps you see all your credit cards in one place and makes it easy to develop a plan to pay off your debt. Understanding the interest rate and balances on each card makes it easier to make better decisions about tackling your debt.
Tally offers a line of credit to consolidate your credit card debt into a single payment. Said differently, Tally opens a line of credit, pays off your credit cards, and then charges you interest on the line of credit. You then pay Tally directly instead of your credit card issuers.
Often, the line of credit from Tally comes with a lower interest rate and lower fees, saving you money. On average, Tally users save $4,185 and get out of debt up to 2x faster.
How Does Tally Work?
Next, in this Tally review, let’s cover how Tally works.
First, download the app and provide information about your credit cards. This allows Tally to understand your current debt situation and prioritize which card(s) to pay first.
Then, you’ll provide some basic info that allows Tally to determine if you’re eligible for a credit line.
If approved for a credit line, then Tally pays off your credit cards (paying off the highest interest cards first, up to the size of the credit line).
After that, you make one simple monthly payment to Tally. You can continue to use the line of credit Tally provided, rinsing and repeating until you’re free of credit card debt!
Now, if for some reason you want to pay a card on your own, or the Tally interest rate is higher than the credit card interest rate, you have the option to deal with that card yourself. In the Tally app, simply set each card as “You Pay” or “Tally Pays.” This approach gives you maximum flexibility.
Tally Membership Options
This Tally review wouldn’t be complete without discussing Tally’s various membership options. When it comes to signing up with Tally, there are three membership options:
- Tally (with no Credit Line)
- This Tally option applies if you are not approved for or do not elect to use the Tally credit line
- Offers basic debt payoff and planning features (including payment reminders)
- Can make credit card payments automatically (so you never miss a payment)
- $4.99 per month
- Tally Basic
- Tally’s Basic service is what many borrowers will choose, as it’s the most straightforward
- Access to the line of credit through Tally on which you’ll make interest payments
- No additional fees
- Tally’s upgraded service that offers a lower interest rate and access to a larger line of credit
- Personalized payoff plan based on how you want to pay off your debt
- Debt snowball
- Debt avalanche
- Optimizing for credit score improvement (i.e., reducing your credit utilization ratios)
- Ability to automate extra payments towards your credit cards
- Late fee protection (Tally will always make the minimum payment on your cards, even if you don’t, to save you late fees)
- $25/month (paid annually from the credit line, so you don’t have to pay upfront)
- However, you do get a discount on Tally+ if you consistently make your payments on time
Once you sign up for Tally+, you are committed for a year, at which point you can switch to Tally Basic. Tally Basic is a great fit for most people but depending on your card balances and your unique interest rate offering from Tally, definitely check out whether Tally+ will save you money (e.g., if you save more in interest than the $300/yr. annual fee).
Tally Terms, Fees & Conditions
This Tally review wouldn’t be complete without highlighting Tally’s terms, fees, and conditions. When it comes to the fine print, Tally is a pretty straightforward service. You pay interest on the line of credit, but that’s it.
Tally does not charge late fees, origination fees, prepayment fees, balance transfer fees, or over-limit fees.
What you get is what you see. Simply pay the interest on the line of credit to Tally, and chances are you’ll save compared to paying your credit card debt directly.
Alternatives to Tally
Now, before you decide to go with Tally, I want to share some other debt consolidation alternatives as part of this Tally review. Other vehicles you can use to pay off your credit card debt (and reduce interest costs) include a home equity line of credit, a home equity loan, a personal loan, or a balance transfer credit card.
Here’s an overview of those alternatives:
|Consideration||Tally||Home Equity Line of Credit||Home Equity Loan||Personal Loan||Balance Transfer Credit Card|
|Interest Rate(as of the time of this writing)||Variable-rate of 7.9% to 25.9%||Usually variable-rate of 3.5% – 8.5%||Fixed-rate of 4.5% – 6.5%||Varies widely (but fixed rates start at ~5%)||0% intro APR for up to 21 months depending on the card|
|Fees||None||Sometimes have origination fees (not always)||Typical closing costs you’d see on a mortgage (title fees, appraisal fees, etc.)||Varies||May have a balance transfer fee; other fees are consistent with most credit cards|
|How it Works||Tally sets up a line of credit, pays off your credit cards, and then you make one monthly payment to Tally for the line of credit||You create a revolving line of credit against your home equity, which you can usually draw/redraw at will for a fixed period, using the proceeds to pay off credit card debt||Take out a loan with a fixed payback period (similar to your primary mortgage) and use the proceeds to pay off credit card debt||Take out an unsecured loan with a fixed payback period (usually a relatively shorter timeframe) and use proceeds to pay off your credit card debt||Transfer the balance of credit cards to a balance transfer card, allowing you a short window to pay off the balance before interest kicks in at the end of the introductory period|
|Key Considerations||You need to confirm that the interest rate Tally offers is lower than your credit card issuer||Using your house as collateral effectively turns an unsecured loan (your credit cards) into a secured loan (your house)||Same consideration as a HELOC, though home equity loans often come with high closing costs||Personal loan rates can be high, and the payback period is relatively short, meaning you need to be able to make the payments||Only have the introductory period to pay off the balance before the higher interest rate kicks in|
|Best For||A simple, straightforward plan to pay off your credit card debt and minimize interest costs||Paying off your credit card debt with a low-interest rate using your home as collateral; requires more upfront work and means you will carry some interest rate risk||Paying off a larger credit card debt over a longer period, albeit with higher closing costs and interest rates||People looking for one fixed monthly payment and willing to manage payments on their own||Those with small balances they can pay off within the introductory period|
Pros & Cons of the Tally App
Next in this Tally review, before we cover some frequently asked questions, let’s dive into some pros and cons of Tally.
- Tally’s interest rate is often less than you’re paying your credit card issuer
- Only have to make one monthly payment to Tally rather than worrying about numerous credit cards
- Tally’s algorithm is designed to save you as much money on interest as possible
- Tally doesn’t teach you to change the underlying behavior that got you into credit card debt – you need to adjust your spending habits to get out of debt for good
- The interest rate can still be relatively high compared to other options (like a HELOC)
- Tally+ can be expensive, so consider if it makes sense based on your circumstances
Frequently Asked Questions about Tally
Now that you understand some of the basics of how Tally works, I want to cover some frequently asked questions next in this Tally review.
Who is Tally a Good Fit For?
Tally is a good fit for those looking for a one-stop shop to pay off their credit card debt. By aggregating your credit card debt into one manageable payment, you will minimize your interest costs and simplify your finances.
While there are other solutions (like personal loans, HELOC, etc.), they can be complex and require you to do more upfront work and spend more time managing your payments.
How Can You Qualify for Tally?
While Tally doesn’t publish exact qualification standards, they check your credit to qualify you. The best way to determine if you are eligible for a Tally credit line is to sign up and apply! Even if you don’t get approved, you can still use Tally to automatically pay your credit cards and help you understand your financial position.
What Credit Score Do You Need to Use Tally?
Tally typically requires a 580 credit score, but it depends on each borrower’s credit history.
Does Tally Hurt Your Credit Score?
No! Applying for a line of credit with Tally does not hurt your credit score. Tally performs a soft pull on your credit, which means there is no impact on your score.
Additionally, because Tally pays off your credit cards for you, it may improve your credit score by lowering your debt utilization ratio.
However, it is important to note that Tally reports your payments to the credit bureaus, so your credit score is likely to drop if you do not make your regularly scheduled payment to Tally.
Where is Tally Available?
Tally is available in most states! However, as of this writing, it is not available in Maine, Montana, Nevada, Vermont, West Virginia, or Wyoming.
What Credit Cards Work with Tally?
Tally supports credit cards from most major banks, including American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Discover, US Bank, and Wells Fargo.
Tally also supports credit cards from retailers like Amazon, American Eagle, Macy’s, Sears, TJ Maxx, and Walmart.
Is Tally Reputable?
If you’re wondering if the Tally app is legit, the answer is yes!
As of this writing, Tally has a 4.5 rating on the iOS app store with over 18,000 ratings.
On Trustpilot, Tally has a 4.4 rating from 747 people (as of the time of this writing). There are countless stories of people who have used Tally to get their credit card debt situation under control.
In 2021, the Consumer Financial Protection Bureau received just four complaints about Tally, all of which Tally responded to promptly and closed with an explanation.
How is Tally’s Customer Service?
Tally has a robust FAQ section designed to answer some of the most common questions. However, if you need help, Tally does provide support via email at email@example.com.
While Tally says the fastest way to reach them is via email, they also have a phone number you can call between 8 AM and 5 PM Pacific time at (866) 50-TALLY.
How Much Does Tally Cost?
The cost of Tally comes down to the interest rate on the line of credit. Depending on your credit history, the interest rate can vary. However, Tally aims to offer an interest rate lower than what you’re currently paying on your credit cards.
Additionally, if you choose to use Tally+ (to access a lower interest rate and larger line of credit), the cost is $300/year. Depending on your specific situation, this may or may not make sense.
How Much Can You Save with Tally?
While the amount you save with Tally varies, the average Tally user saves $4,185 (as of the time of this writing).
Of note, Tally does not guarantee that you’ll save money, so The burden is on you to make sure the interest rate you’re paying Tally is lower than what your credit card issuer offers. If it’s not, you can simply select to pay that card on your own in the Tally app.
Lastly, it’s worth mentioning that you need to pay attention to the payoff period. You can spend more in total interest if the payback period is longer, even with a lower interest rate. However, Tally’s Credit Card Debt Payoff Calculator can help you with this math to make sure you’re saving money.
Is Tally Safe?
Yes! Tally uses industry-standard 256-bit encryption for all your data.
Additionally, Tally does not store your banking information after you provide info about your credit cards. Tally also commits that it does not sell your personal information.
As always, I encourage you to do your homework to make sure you are comfortable with Tally’s security policies.
Tally Review Summary: Is the Tally App Worth It?
Wrapping up this Tally review, is the Tally app worth it?
The answer is that the Tally app is totally worth it for many people! It is a fantastic way to simplify your credit card debt, lowering your interest payments and helping you get out of debt sooner.
Of course, you’ll want to make a plan to avoid getting into credit card debt in the future, but the Tally app is a great way to start tackling your debt today.
So, sign up with Tally to get started eliminating your credit card debt!