Debt consolidator, but on a phone. All usual criticisms of debt consolidation, but with the irrational exuberance of a SV startup to add on.
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
#42Earlier quoted context omitted.
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.
Good question on introductory rates and fees. Tally does NOT offer introductory or "teaser" rates. Your Tally APR is your Tally APR. And Tally does NOT charge ANY fees of ANY kind. Here's a cut and paste from our FAQ: "There’s no annual fee, no origination fee, no prepayment fee, no balance transfer fee, no late fee, no overlimit fee, nada. Like you, we hate hidden fees." Tally makes money by charging interest on the…
The site does not seem to have terms and conditions, so we don't know if Tally reserves the right to change that at any time, with or without notice.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#43Earlier quoted context omitted.
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?
Hey, great question. This is Jason (Tally co-founder). Credit card APRs are massively inflated. Here are two points to consider: A. There is a 500% difference in the likelihood of someone paying back a loan with a 760 FICO score vs someone with a 660 FICO score, but only an 8% difference in APR. B. "the credit card business continues to be the most profitable bank lending business, with returns more than four times h…
500% sounds like a deliberate play with numbers, if the default rates were 2% and 10% respectively, I could choose to call that a 500% difference, or more reasonably, an 8% difference.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#441. How does Tally calculate how to much to pay for a bill? For example, sometimes I have will receive a statement weeks prior to the bill date where I only have to pay a small amount, but I'm actually carrying a larger by the time that the payment due date comes around. 2. Do you do a hard pull of credit?
You raise a really good question. Credit cards are confusing by design. Many people don't have the time to optimize how they pay their cards.
The Tally algorithm absorbs all this complexity and recommends whatever is in your best interest.
1. With the fact pattern you've provided, there are situations where Tally would only pay the Statement Balance (the smaller amount you mention) so that you can take advantage of your card's grace period.
But if you are not in grace with a card (meaning you haven't paid 100% of your Statement Balances for the previous 2 consecutive statement periods), Tally will suggest paying more/all of the Statement Balance to minimize your interest charges.
Bottom line: Tally is really smart and mathematically suggests whatever is in your best interest.
2. To see if Tally makes sense for you, its a soft pull and then a hard pull to actually open a Tally account.
-Jason (Tally co-founder).
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#451. How does Tally calculate how to much to pay for a bill? For example, sometimes I have will receive a statement weeks prior to the bill date where I only have to pay a small amount, but I'm actually carrying a larger by the time that the payment due date comes around. 2. Do you do a hard pull of credit?
I'd like to know the answer to this as well. Do you require login credentials from your users or what? I assume there's not some secret API for credit cards ...
Yup, you provide credentials just like mint.com, Acorns, Digit, Level Money, Penny, etc.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#46Debt consolidator, but on a phone. All usual criticisms of debt consolidation, but with the irrational exuberance of a SV startup to add on.
Tally is more like a self driving car for your credit cards. It helps optimizes all your payments, balances, stops late fees, and helps you avoid obscure penalties.
Even if you never carry a balance, Tally is the easiest ways to manage your credit cards.
Re: Tally raises $15M for app to make credit cards less expensive, easier to manage
#471. How does Tally calculate how to much to pay for a bill? For example, sometimes I have will receive a statement weeks prior to the bill date where I only have to pay a small amount, but I'm actually carrying a larger by the time that the payment due date comes around. 2. Do you do a hard pull of credit?
You raise a really good question. Credit cards are confusing by design. Many people don't have the time to optimize how they pay their cards. The Tally algorithm absorbs all this complexity and recommends whatever is in your best interest. 1. With the fact pattern you've provided, there are situations where Tally would only pay the Statement Balance (the smaller amount you mention) so that you can take advantage of y…
Ironically, by doing a hard pull, you're hurting my credit slightly, which is against your stated mission.
Some of the appeal of the new FinTech startups are that they don't measure customers based off traditional models of risk eval (FICO, etc.) but that they are able to factor in both past and future based on many more data points. I'll keep monitoring Tally and hope in the future you can arrive to this same point.
BTW, I hope you look into marketing to credit card churners. I think they would love your product.