Those who carry balances (such as myself) may want to weigh in on this. 
Article: https://www.cnbc.com/2018/08/28/robo-advisor-for-the-99-percent-aims-to-help-you-pay-off-debt-faster...
Article: https://www.cnbc.com/2018/08/28/robo-advisor-for-the-99-percent-aims-to-help-you-pay-off-debt-faster...
Interesting concept but there are a few things that concerns me -
Minimum payments made to cards - From their website - "If you have cards with a lower APR than your Tally credit line, only minimum payments will be made to those cards to make sure you won’t be charged late fees." I think my creditors would freak out if I didnt' make more than the minimum payment.
Total minimum payment - From their website - "First, we ask you to repay the minimum payments we made to your credit cards that month. Then, we ask you to pay interest based on your APR. Finally, we ask you to repay 1 percent of the total amount you borrowed from us to ensure you’re making progress toward paying down your Tally balance." 1% of the amount borrowed? $100 on $10K SL. I thought the idea was to get rid of debt.
I'll pass.
@SomewhereIn505 wrote:Interesting concept but there are a few things that concerns me -
Minimum payments made to cards - From their website - "If you have cards with a lower APR than your Tally credit line, only minimum payments will be made to those cards to make sure you won’t be charged late fees." I think my creditors would freak out if I didnt' make more than the minimum payment.
Total minimum payment - From their website - "First, we ask you to repay the minimum payments we made to your credit cards that month. Then, we ask you to pay interest based on your APR. Finally, we ask you to repay 1 percent of the total amount you borrowed from us to ensure you’re making progress toward paying down your Tally balance." 1% of the amount borrowed? $100 on $10K SL. I thought the idea was to get rid of debt.
I'll pass.
That's what concerns me as well. I'd rather go for a personal loan from Lending Club.
Interesting article and concept. Thanks for sharing.
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Weird, their FAQ is at odds with the main article.
If they're just talking minimum payments, that isn't a refinance of the debt which is what I got at first glance, that's just a payment manager... what credit check and loan extension are they talking about then?
That said paying the minimum on lower APR's than the line you get from this place is absolutely righteous and I don't think any lender is going to spook on that from anecdotal reports here. Certainly none of my did and I racked up 20k in revolving debt over the last 9 months of being a lazy bum out of work, and Chase definitely knew I had zero money coming in... and incidently I took some 30D and even a 60D late on TU during this period (cause I wasn't paying attention and my one account without autopay had a forgotten recurring charge on it), and nobody so much as blinked. Oddly I'm getting more pre-approvals for various things with my FICO score 80-100 points lower during the period.
I'm not quite as confused either by the minimum payment thing if they aren't really re-financing the debt wholesale: that's their minimum, but if you pay more than that they'll apply it to the highest interest debt presumably. They should spell that out better for certain but I don't see it as being awkard there... but like others I'd go with a full personal loan: I can cut checks with the best of them, and I'd rather take the FICO win now, thank you.
