Tally App Review 2024: Consolidate Your Credit Card Debt

Editor's note: Tally no longer offers its line of credit directly to consumers, according to an April 2024 press release from the company. Prospective borrowers may apply for a line of credit through one of Tally's partners. Tally's debt management tools are still available within the Tally app.

Tally is a mobile app that offers users a variable-rate personal line of credit to consolidate debt across multiple credit cards. If you qualify, Tally uses this line of credit to pay off your credit cards in a way that saves you the most money, targeting the credit card with the highest interest rate first. You then pay Tally back directly from your checking account.

Tally’s line of credit is best for borrowers who don’t plan to continue using the cards they’re paying off and can qualify for an interest rate that’s lower than their credit cards.

If you don’t qualify for a line of credit, you can still use the Tally app to see all of your credit card balances in one place, get recommendations for how to pay them off and set up automatic payments.

Table of Contents

Tally line of credit at a glance

How does the Tally app work?

Pros and cons of the Tally app

How to qualify for a Tally line of credit

Debt payoff options for bad credit

How to apply for a Tally line of credit

Tally line of credit at a glance

How does the Tally app work?

The Tally app works by paying off your high-interest credit card balances via a personal line of credit. You then pay Tally back at a lower interest rate, which saves you money and helps you get out of debt faster.

Here’s what the process looks like:

1. Download the Tally app and set up an account. Tally asks for your name, email address and a password.

2. Add basic information and get an approval decision. Enter a home address, your birthdate, annual income and phone number, and approve a soft credit check, which doesn’t impact your credit score. If approved, Tally will display your approved credit line amount and annual percentage rate.

3. Add credit cards. You can scan your credit cards with your phone’s camera or enter their information. The app will connect to your credit card accounts and analyze your balances.

4. Accept the offer. Accept the terms and conditions of the offer you receive.

5. Link a checking account. Tally uses your bank account for repayment.

6. Tally pays your credit cards. With your approval, Tally will usually pay the balances on any credit cards with a higher APR than the credit line. In turn, you make monthly payments to Tally.

How Tally pays off your credit cards

How Tally pays off your credit cards depends on how much debt you have, your credit cards’ interest rates and what amount and rate you qualify for with Tally.

If Tally’s credit line is larger than your total credit card debt and has a lower APR: Tally will use the line of credit to pay off all the cards, and you’ll be left with one monthly payment to Tally. You’ll pay interest on only the amount of credit you use.

If your Tally credit line is smaller than your credit card debt: Tally uses the credit line to pay high-interest cards first. As you repay the app, more of the credit line becomes available and the app pays more of your balances. You can also use the Tally app to set up automatic payments on cards that aren’t covered by the credit line, which may help you avoid late fees.

If Tally’s APR is lower than some of your credit cards': Tally won’t pay off credit cards that have lower APRs than your line of credit. Still, users can set up automatic payments from a linked checking account to manage those card payments through Tally.

» MORE: Debt consolidation calculator: Will consolidating save you money?

Pros and cons of the Tally app

Pros of the Tally app

Prioritizes high-interest cards: The app optimizes your monthly payments, typically paying down your highest-interest debt first. That way, you don’t have to do the work of determining how much to pay toward each card, and you can save money on interest.

Fast approval and access to funds: Tally makes an instant approval decision, and funds are available immediately. This is faster than some personal loans and balance transfer cards, which can take a few days to a week or longer.

Debt payoff features: Even if you don’t use a line of credit, the app gives you suggestions for how to save money as you pay off debt and automatically applies that strategy as it makes payments from your checking account.

Cons of the Tally app

Reports payments to none or one of three credit bureaus: Tally reports payments to only one of the three major credit bureaus, Experian, and in some states does not report payments at all. Having payments reported to all three bureaus (the other two are Equifax and TransUnion) ensures that future creditors can consider positive credit behavior when deciding your rate.

Fees can be high: Some existing users may have received a Tally+ membership offer, which gives you access to a larger credit line and monthly discounts for making on-time payments. However, this membership costs $300 per year, which comes out of your credit line. Tally+ isn’t available to new members.

How to qualify for a Tally line of credit

Tally likely considers information like credit score, income and other existing debts to qualify you. It doesn’t require a specific minimum income, nor does it disclose other qualification criteria.

To meet Tally’s basic requirements, applicants must:

• Be 18 years or older.

• Have a 680 credit score or higher.

• Live in the U.S.

• Have a verifiable income.

Debt payoff options for bad credit

If you aren’t able to qualify for a Tally line of credit, there are other ways to consolidate or otherwise pay off your debts.

Debt consolidation loans: A debt consolidation loan can pay off your credit cards in a lump sum and leave you with just one monthly payment. Unlike Tally, debt consolidation loans have fixed rates, so your initial rate never changes. Depending on the lender, you could also add a co-applicant or co-borrower to improve your chances of qualifying.

» COMPARE: Best debt consolidation loans for bad credit

Credit counseling: A reputable credit counseling agency can also help you get your credit card debt under control. Counselors may offer free budgeting help or set you up with a debt management plan which consolidates your debts under a lower interest rate, similar to Tally.

Avalanche or snowball methods: Consolidation isn’t the only way to pay off debt. You can also use the snowball or avalanche methods without applying for a line of credit or downloading the Tally app. Simply pay off your smallest debt first and work your way up, using the snowball method, or pay off your highest interest debt first and work your way down, using the avalanche method.

How to apply for a Tally line of credit

Download the Tally app, create an account and enter some basic information to see if you qualify for a credit line. You’ll need a 680 credit score.