Varo Believe Secured Credit Card is issued by online bank Varo. It shares many similarities to other cards for consumers who are looking to improve or rebuild their credit. The closest cousin may be the Chime Credit Builder Visa (r) Credit Card. The Varo credit card is similar to the Chime Credit Builder Visa(r) Credit Card. It does not have an annual percentage or APR, has no minimum security deposit or annual fee, and does not require you to pass a credit check. These features will save you money and prevent you from losing credit points.
Varo Believe Secured Credit Card was created to prevent overspending, missed or late payments, as well as earning rewards. The card’s security features can feel too restrictive or overbearing for some.
These are five facts about Varo’s credit card.
1. To get the Varo card, you need to have a Varo bank accounts
Although there is no cost to open a Varo account, it will still require you to go through a few hoops. There is no security deposit for Varo credit cards, but you will be eligible if your Varo account has had direct deposits of $500 or more in the last 90 days. Deposits from your employer or the government are counted; however, transfers from peer to peer apps like Venmo don’t.
You’ll be invited by Varo Bank to apply for the Varo Believe Secured Credit Card.
2. To a certain point, you can set your credit limit.
Varo Believe Secured credit card requires that you transfer money from your Varo Bank account to your Varo Believe secured bank account. This can only be done through the Varo app. Your credit limit is the amount in your secured account.
Varo’s credit card has spending limits, but not like a traditional credit card. The purchase limit is $2,500 per day and cash advances are $1,000 per day. Total cash advances and purchases cannot exceed $10,000 each billing cycle.
A large purchase such as furniture could exceed your spending limit. You would need to use another payment method to pay for something else that day.
3. Credit card payments are virtually foolproof
Your Varo Believe secured balance is your credit limit. It also serves as the funding source for your credit card payments. Varo automatically subtracts from your secured account the amount of credit card transactions to ensure you have enough money to cover your monthly bills. Varo’s credit card is impossible to spend too much. Varo locks your card if you fail to make a payment. Access will not be restored until the balance is paid.
Varo offers “SafePay” to ensure prompt payments. SafePay is enabled so that balances are paid in full at the conclusion of each billing cycle.
Varo’s credit card reports to the three largest U.S. credit agencies. These measures are sure to benefit cardholders who build or repair credit histories. They incentivize payment of the credit card balance and payment history is a key factor in credit scores. This handholding is not available with traditional unsecured credit cards. You will need to pay more attention to your monthly statements if you decide to upgrade from Varo Believe Secured credit card to a regular card. (The Varo Secured Credit Card is the only one that Varo offers. There’s no upgrade route.
4. The APR is 0%
Your balance will not increase if you make late payments on your credit cards. The APR for the Varo Believe Secured Card is 0%. This is an extremely rare perk that can save you money and is one of the highlights of the card.
It’s not the way traditional credit cards work. When you are ready to upgrade your Varo credit card, be sure to know the APR of your new card.
5. Select purchases qualify for cash back
Two ways to earn cash back with Varo Believe Secured Credit Card are online offers and card-linked deals. Varo’s online offers, which are similar to a credit-card bonus mall with a traditional card, award cash back on purchases made at retailers you access through Varo’s app or via a promotional email.
You could also use a card linked offer to earn cash back. This works in the same way as a coupon. To qualify for the discount, you must activate the card-linked offer first.
Once you have earned more than $5, cash back will be automatically deposited to your Varo bank account. The Varo Believe Credit Card cash-back earnings are limited to $50 per month. Other secured credit cards offer unlimited cashback and don’t require you to shop through specific portals or activate individual offers.
Stride Bank, N.A. Member FDIC issued the Chime Credit Builder Visa(r), Credit Card pursuant to a Visa U.S.A. Inc. license. It can be used wherever Visa credit cards are accepted