You don't have to declare bankruptcy or use conventional debt management if you want to get some of your credit card debt paid off. There are many lending options for credit consolidation. But which lender to choose? This review will compare and contrast Upstart and Tally products to help you make the best choice.
What is Tally?
Tally is a financial management app that assists you in organizing and paying off your credit card debt. The California-based company founded in 2015 provides an app with features to view all credit card information in one place. A debt manager is assigned to you to help you manage your debt. Tally also provides incentives like discounts at some retailers.
What is Upstart?
Upstart is a personal loan marketplace established in 2012. It differs from conventional lenders in its use of artificial intelligence to match borrowers and lenders.
The AI approval process works well for people with poor credit or no credit history. As a result, it is frequently more flexible on credit scores than many competitors.
What do Upstart and Tally Offer?
You might be thinking about a different choice like Tally or Upstart if you are preparing to pay off your credit card debt and want to do so while saving money on interest. Both have the primary goal of providing access to funds for credit card debt consolidation.
The best thing is their flexible services. You need a credit score of at least 580 to get qualified for a Tally line of credit. Tally also takes into account additional elements, such as outstanding credit card balances, credit card interest rates, financial history, spending patterns, etc. Similarly, Upstart caters to individuals with a credit history of 600 or higher.
What is Tally’s unique offering?
Tally considers the balances on each card to determine the payment amount to make and which card gets paid off first.
You can move any credit card balances to a Tally credit line if you meet the requirements. You'll save on interest fees and pay your debt quickly if the APR is lower.
If your entire Tally credit line gets used, Tally will pay the minimum payments on your credit cards without adding extra fees. However, you are expected to pay the sum plus interest by your subsequent due date.
With the Tally app, you are charged just once per month. Consolidating all monthly payments can make it easy to pay off debt.
What is Upstart’s unique offering?
Upstart offers personal loan rates that are 10% less expensive than those of other reputable lenders.
Whether you repay part or all of your loan, there are no fees to pay.
If approved, the money is transferred within one business day.
Upstart uses artificial intelligence to streamline the application process for personal loans. Before making a choice, the AI carefully considers all relevant information.
How do the fees compare?
Tally provides two service tiers:
Tally doesn't charge:
What are the interest rates?
Tally interest rates
Tally requires a minimum score of 580. The APR for Tally lines of credit ranges from 7.9 % to 29.9 %, though it is variable and based on the prime rate, just like the interest rates on credit cards. Better discounts and credit lines are also available through Tally+.
You accrue discount credits on your principal balance each month. After a year of accumulated credits, your effective APR decreases by an average of 4%. The company has not disclosed the credit term.
Upstart interest rates
Even though Upstart requires a 600-credit score, their AI system may approve you with a lower score if you have a regular income and a steady job. Upstart offers a three- to five-year unsecured personal loan. The range of loan amounts is $1,000 to $50,000. The annual percentage rate (APR) ranges from 5.4% to 35.99%.
What are the eligibility criteria for Tally and Upstart?
Tally eligibility criteria
Download the Tally app and sign up. Tally checks the balances and payment histories on your credit cards after you've synced them. Depending on your debt-to-credit ratio, interest rates, spending patterns, and credit score, you may be eligible for a Tally line of credit. You need a credit score of at least 580 to qualify.
Tally eligibility criteria
Upstart is clear about the things they won't accept, such as:
Which has a better reputation?
Which lender should you choose, Tally or Upstart?
Upstart may be a good choice if you need a personal loan, have good credit or decent credit but have stable employment, or a high level of education. It has over a decade of experience and a much stronger reputation than Tally. The best part is Upstart offers many services apart from debt consolidation, including car refinancing, home improvement loans, wedding day loans, medical loans, and more. If you are ineligible for any other personal loans, Upstart is the best option.
If you are looking for credit consolidation, single monthly payments, and credit management assistance on one platform, Tally is for you. The two marketplaces work differently, and each has its unique benefits. Tally might be a good option if you believe your credit card debt is out of control. You might be better off handling the debt on your own or consolidating it with a personal loan if you don't have any credit card balances or have low APRs.
A borrower's credit score improves when high-interest debt is consolidated into one manageable personal loan and paid off, so choose wisely.
Tally performs a soft credit check when approving lines of credit; this check does not affect your credit score. Supposing you choose the feature "You Pay" rather than "Tally Pays" and you miss a monthly payment deadline to the card issuer, your credit score may suffer. If you pay off credit card debt and lower your credit utilization rate, your credit score may eventually rise.
The automated assistant Tally Debt Advisor helps you choose the most advantageous monthly payments. If payments are optimized, you may be able to pay off your debt faster.
Tally gives you access to a credit line to pay off your outstanding debt. Instead of sending multiple payments to each creditor, you can make one payment. Repayment is due with your ensuing monthly installment.
This feature tracks your APRs, due dates, and balances. It lessens the confusion that results from trying on your own to manage numerous cards from various issuers.
You must independently send the payments to your credit cards if you select You Pay. Your due dates are still sent to you by Tally. The Tally app also lets you pay your credit cards and keep everything in one place.
Based on how you use your credit cards and your desired goals, Tally Advisor personalizes its recommendations for you. Tally Advisor asks you for the date by which you want to be debt-free and then explains how to get there.
Instead of just making the minimum payments, their algorithm determines the ideal plan to pay off your debts as quickly as possible.
Borrowers looking to consolidate their debts and have fair to good credit should consider Upstart.
You're in good shape to get a lower APR if you have good credit. If they believe you have strong earning potential, you might still be eligible for a loan even with a lower credit score. In addition to your credit score, Upstart bases this on your educational background and employment history.
Upstart might be a good option if you require quick access to the money and don't mind paying an origination fee.
After comparing various loan offers from many companies, apply for the best one. The lender runs a hard credit pull after you submit your application to view your entire credit report. Your loan request will either be approved or rejected based on this.
Tally is a good choice for people who:
The Tally app can gather all your credit card information in one place and analyze your spending if you have unpaid credit card balances and are struggling to manage your debt. Tally will schedule payments following your goal date for paying off balances, which you can set using debt management tools.