Tally App Aims to Lower Your Credit Card Interest Rates
Tired of paying high interest rates on your credit cards? A new app called Tally aims to eliminate that problem completely. The startup just raised $15 million in venture funding to launch its credit card consolidation app.
Tally is designed to help people pay off their credit card debt without having to pay the high interest rates that accompany some credit cards. Users scan their cards into the app, and Tally runs a credit check. If they pass, Tally will offer to pay off the credit cards and create a new loan with a lower interest rate. Then, users make their debt payments to Tally instead.
The APR for a Tally line of credit could be lower than the average APR for a user’s credit cards. This is essentially a credit card consolidation loan, but instead of paying a bank, Tally is giving the loan.
The developers say Tally has already been in a testing phase for the past year, with beta testers working for the last three months. There is no official launch date set, but the new round of funding could give the startup the boost it needs to bring its product to market.
Tally is coming around at an interesting time, with peer-to-peer lenders like Lending Club under intense scrutiny from their financial backers and regulators. The founders of Tally are confident they have a solid business plan. They will only lend money to people with a credit score of at least 660, with interest rates ranging from 7.9% to 19.9%.