A new smartphone app launching this week claims it can help you be smarter about managing credit card debt. Hereâ€™s what you should know.
How it Works
After scanning pictures of all your plastic, Tally performs a credit check. If youâ€™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 theyâ€™ll take care of the rest. (You can still log into your issuersâ€™ site to check rewards, for instance.)
Tally â€” founded by Jason Brown and Jasper Platz, with capital backing from Shasta Ventures and Cowboy Ventures â€” offers credit lines to customers with at least a 660 FICO credit score. However, youâ€™ll need one a lot higher to receive its best annual percentage rate, which is 7.9%. (Currently, the highest rate is 19.9%.)
â€śA Tally line of credit operates just like a credit limit on a card,â€ť said Brown, who serves as Tallyâ€™s CEO. You can use whatever card you want, and â€śit always does mathematically whatâ€™s best for youâ€ť using a complex algorithm. â€śIt takes out all the hassle and anxiety of managing credit cards.â€ť