Tally raises $15M for app to make credit cards less expensive, easier to manage
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Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#2I built the core financial engineering stack at Tally and absolutely love our product! The stuff I worked on was cool (lots of highly non convex optimizations, cool statistical methods, all Scala stack, very FP-oriented, etc.) but mainly the experience we deliver to consumers is incredibly powerful. The biggest challenge was probably getting this very complex, very real-time concept to work on an antiquated financial system. We're proud to say we have. Sign up now! You won't regret it!
Also, PM if interested in anything on the "Careers" page. What do you all think?
Cheers!
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#3Maybe I'm missing something here, but this looks like a business with massive downside risk and very little upside.
It's bundling a bunch of bad debt (nobody who manages their money well is going to pay 20% interest if they have better options) and hoping that the aggregate is less risky. I have a feeling we've seen that sort of wishful thinking about debt before.
So what am I missing that makes Tally so good at managing the risk that people just run up huge debts on multiple cards and leave Tally holding the baby?
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#4 “Tally solves problems that customers have managing multiple credit cards, incurring charges or fees, and not knowing which one to pay first,” Flynn said. “Theirs is an elegant solution that can apply to a lot of people.”
“The investment community has gotten comfortable with non-bank entities originating loan assets,” Brown said.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#5Tally appears to do no underwriting it simply offers you a lower rate than your current cards offer and allows you to pay all the bills at once? Or does Tally have a proprietary method to tell which borrowers are worthy of a lower rate, the story is not really clear on this point.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#6Tally appears to do no underwriting it simply offers you a lower rate than your current cards offer and allows you to pay all the bills at once? Or does Tally have a proprietary method to tell which borrowers are worthy of a lower rate, the story is not really clear on this point.
https://www.meettally.com/faq
Currently Tally is limited to customers who get approved for a Tally Credit Line. The approval is based on typical criteria such as your FICO score, debt and income. As of April 2016, our minimum FICO score is 660.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#7Maybe I'm missing something here, but this looks like a business with massive downside risk and very little upside. It's bundling a bunch of bad debt (nobody who manages their money well is going to pay 20% interest if they have better options) and hoping that the aggregate is less risky. I have a feeling we've seen that sort of wishful thinking about debt before. So what am I missing that makes Tally so good at mana…
Yes, not seeing the business model here. They're basically issuing a credit card of their own.
Somehow, I suspect this will morph into a "consolidate your bills" scheme, or the low rate is only an introductory rate, or there will be big fees, or they try to sell you on a home equity loan, like LowerMyBills.com.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#8Tally appears to do no underwriting it simply offers you a lower rate than your current cards offer and allows you to pay all the bills at once? Or does Tally have a proprietary method to tell which borrowers are worthy of a lower rate, the story is not really clear on this point.
Tally underwrites.
from https://www.meettally.com/how
you will need to qualify for and get the Tally Credit Line. Depending on
your credit history, your APR (which is the same as your interest rate) will
be between 7.9% - 19.9% per year. And similar to credit card APRs, it will
vary with the market based on the Prime Rate.
As mentioned elsewhere, this seems like a hard business -- smart people use their credit cards as charge cards and pif every month. You probably aren't carrying a balance at 20% plus if you have the cash elsewhere. But good luck to them; the more competition banks have the better.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#9Tally appears to do no underwriting it simply offers you a lower rate than your current cards offer and allows you to pay all the bills at once? Or does Tally have a proprietary method to tell which borrowers are worthy of a lower rate, the story is not really clear on this point.
Tally underwrites. from https://www.meettally.com/how you will need to qualify for and get the Tally Credit Line. Depending on your credit history, your APR (which is the same as your interest rate) will be between 7.9% - 19.9% per year. And similar to credit card APRs, it will vary with the market based on the Prime Rate. This looks like it could be helpful, but those rates are no better than your local CU offers. A…
If a credit card company can make money from me by charging the merchants I use the card with, and the credit card company gets its money for free through bank deposits and the credit card company has decades and hundreds of millions already invested in its underwriting model, how can Tally sustainably charge me less than the credit card company?
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#10Maybe I'm missing something here, but this looks like a business with massive downside risk and very little upside. It's bundling a bunch of bad debt (nobody who manages their money well is going to pay 20% interest if they have better options) and hoping that the aggregate is less risky. I have a feeling we've seen that sort of wishful thinking about debt before. So what am I missing that makes Tally so good at mana…
Yes, not seeing the business model here. They're basically issuing a credit card of their own. Somehow, I suspect this will morph into a "consolidate your bills" scheme, or the low rate is only an introductory rate, or there will be big fees, or they try to sell you on a home equity loan, like LowerMyBills.com.
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