Upstart vs Tally vs SoFi Personal Loans Comparison: Which Credit Card Consolidation Option to Pick?

At some point in their lives, most people find themselves saddled with some level of debt. This can be the result of financing a car or a home with multiple credit cards. Because of a lack of financial education, many people end up carrying around five to seven credit cards with balances that are nearly maxed out. This is not uncommon. Many of these credit cards have astronomical interest rates, and paying off these balances can be a real challenge for many people.

Credit card debt can be reduced by consolidating multiple credit cards into a single account. As a result of credit card consolidation plans, account holders can compile all of their debts into a single, lower interest rate account or use a low-interest loan to pay off all of their debts. If you want to get rid of some of your credit card debt, you don’t have to file for bankruptcy or use traditional debt management. But should you use Upstart vs Tally or Tally vs SoFi?

The Path to Consolidation

Even though the services discussed here are good options for credit card consolidation, people who don’t know much about the process should talk to a debt management expert or financial advisor before moving forward.

Upstart

With the help of Upstart, credit card holders can pay off high-interest debt by taking out a loan with a lower interest rate, which they can then pay back with their regular monthly payments. For 3 to 5 year terms, Upstart will lend amounts ranging from $1000-$50,000. Between 5.22% and 34.99%, interest rates are available. The monthly payment will always be the same with these fixed-rate percentages. Individuals can consolidate high-interest debt into a single, manageable personal loan, which has a positive impact on their credit score once it is paid off. Upstart looks at the borrower’s past payment history to figure out what a reasonable monthly payment would be.

Tally

Tally is a credit consolidation service, accessible primarily through its mobile application, that allows an individual to add their credit cards and have Tally work for them to pay them down. When a new account holder is approved by the services Tally offers, the service pays off all the credit cards, and then issues the account holder a low interest line of credit. The account holder then begins paying back Tally at the lowered interest rate. In this way, all of the previous debt is consolidated into one simple bill each month. Tally also offers rewards for staying on track, such as discounts at certain retailers.

SoFi Personal Loans

SoFi is a general online banking service that offers a variety of financial products, ranging from investing, to checking in savings. They also offer credit consolidation with lower interest rates and no fees. SoFi will issue a personal loan in an amount between $5000 and $100,000 for the account holder to pay off high-interest credit cards. This is fixed at an APR of between 7% and 21.28%. As with other similar services, the account holder pays off the high interest credit card, and then pays SoFi back monthly at a lower interest rate until the loan is paid off. SoFi will pay lenders directly for the client and offers a 0.25% APR discount for the service. Payments to SoFi are set on a given date of the month, and there are no application fees or prepayment penalties. The terms of the loan range between three and seven years.

Summary

For those who are buried under a mountain of credit card and student loan debt, the first step is to decide to take action and get out of debt. Many of these services are only a small portion of the options available, but the ones reviewed here have been chosen because of their reasonable features and low rates. Have you decided to go with Upstart vs Tally or Tally vs SoFi? It’s likely that you’ll need to do more research before settling on the best option for you, but we recommend SoFi for debt consolidation. SoFi has been around for quite a while and is more than just a debt management company, but instead has experience in a wide range of financial options. It also offers longer loan terms and lower interest rates.

FAQ

1. Do I have to pay off all of my debt with the services?

No, all three services allow the account holder to choose what previous accounts they wish to combine.

2. How quickly will I be approved for a debt consolidation loan?

All three of the services reviewed here offer either instant approval or decline, or have an answer within a day or two.

3. Do I have to have a minimum credit score to apply for the services?

Tally requires a credit score of 560 and above, while the other two require 580 and above.