A new smartphone app launching this week claims it can help you be smarter about managing credit card debt. Here’s what you should know.
How it Works
After scanning pictures of all your plastic, Tally performs a credit check. If you’re approved, the service helps you pay off your high-interest cards using a new line of credit with a lower rate. Simply pay Tally once a month, and they say they’ll take care of the rest. (You can still log into your issuers’ site to check rewards, for instance.)
Tally — founded by Jason Brown and Jasper Platz, with capital backing from Shasta Ventures and Cowboy Ventures — offers credit lines to customers with at least a 660 FICO credit score. However, you’ll need one a lot higher to receive its best annual percentage rate, which is 7.9%. (Currently, the highest rate is 19.9%.)
“A Tally line of credit operates just like a credit limit on a card,” said Brown, who serves as Tally’s CEO. You can use whatever card you want, and “it always does mathematically what’s best for you” using a complex algorithm. “It takes out all the hassle and anxiety of managing credit cards.”