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.
Also, there may be lots of people who foolishly don't use CUs. If Tally can reach lots of them they'll do well for themselves.
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 higher than the average return on assets." - Richard Cordray, Director of the CFPB (December 2015)
The bottom line is that banks are significantly overcharging consumers AND have high fixed costs. Because of the technology Tally has built, our cost structure is an order of magnitude lower than banks. This means we can save customers money and be profitable as a business.
Leaves me wondering how much inroad is possible to make going against such big (and dirty-playing) actors.
I mean, obviously if you get to that point you must be doing something right, and shaking the big entrenched businesses can sometimes (most of the times? always?) bring good things, so good luck!
lolol so many assumptions!
yeah they are overcharging. Credit card companies would be profitable lending at Fed Funds Rate + 2%
Instead they charge 14-22% no matter what. No matter what the macroeconomic environment is.
A. For every 10 people who have a credit card, there are 16 late fees assessed every year. With Tally, you don't have to worry about missing payments.
B. 4 out of 10 households carry a balance ($15K average) for a total of $700B. 78% of those balances are held by people with good credit (Prime or Super Prime), yet their average retail APR is 18%. With Tally, you don't have to worry about being charged unfair APRs.
I hope that helps!
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.