There's a new app in town that wants to make it easier to remember to pay those credit cards.
Or as its co-founder Jason Brown told Mashable: "It's kind of like a self driving car for your credit card." Yes, the apps have taken over. And it has one goal: making sure those credit card companies don't slap the consumer with another late fee again.
The reason behind this for Brown, a serial entrepreneur, came after he looked into into a market where he thought consumers were being over charged for a service. From there, he wanted to make a product that could take that friction out of the equation for the consumer.
Enter Tally and credit card companies.
"As I dug into it, I just came to understand that credit cards are the most profitable bank lending business," Brown said in an interview with Mashable. "They're four times more profitable than any other loan they give."
Here's how Tally works.
Tally follows users accounts and determines how they can best pay off the credit cards. Tally users get a line of credit and they pay tally, which then pays the credit card company.The reason for this is that Tally has the automation built in to ensure a credit card payment is never missed again. And the fees, for balances that can't be paid off, are reportedly lower than a credit card (as low as 7.9 percent, but higher depending on credit history).
"Our dream is that people's credit cards live inside an app and instead of carrying their balances on credit cards, they're carrying them on their phone," Brown said in the interview. "I'd want to make sure that consumers are getting a significant discount on their [annual percentage rate] from the credit card portfolio they're looking to pay off."