Guide to Varo Believe

The new Varo Believe Card from Varo Bank is one of many starter credit cards that can help you build your credit. Guide to Varo Believe

Varo Bank established itself as a digital-only bank to assist those unable to access traditional banking services. The Varo credit card keeps that mission going by giving people who might not otherwise be able to get credit a chance to improve their credit score and build a good credit history. Guide to Varo Believe

That being said, many people might not know about Varo Bank. You may have some questions about Varo and what it can do for you. What is Varo? Are Varo reviews positive, or are customers unhappy with the company’s services? Is Varo safe? Guide to Varo Believe

Let’s look more closely at Varo Bank and the Varo credit card so you can decide if getting the Varo Believe Card is a beneficial idea. Guide to Varo Believe

What is Varo Bank?

Varo Bank was founded in 2015 as a way to give people who might have difficulty accessing traditional banking services the ability to open a checking account and use a debit card to make purchases. Guide to Varo Believe

Varo reviews are predominantly positive, with satisfied consumers praising the bank’s ease of use and lack of fees. Varo Bank received an “excellent” rating from Trustpilot and an A+ rating from the Better Business Bureau.

In 2021, Varo announced plans to release the Varo Believe Card – a credit card designed to help people build a positive credit history while avoiding interest charges and monthly fees. As of this writing, the Varo Believe Card is not fully launched; however, consumers who are interested in getting the Varo Believe Card when it releases can start the process by opening a Varo bank account. Guide to Varo Believe

How does the Varo credit card work?

The Varo credit card is a no-fee, no-APR card that helps you improve your credit score while avoiding debt and interest charges. Guide to Varo Believe

Here’s how it works: Every time you use your Varo credit card to make a purchase, Varo will automatically withdraw money from your Varo bank account and transfer it to a Vault account. You can use the money in your Vault account to pay off your credit card balance in full every month – and if you want to ensure that your payments are always made on time, you can use Varo’s Safe Credit Builder tool to set up automatic credit card payments. Guide to Varo Believe

Is Varo a prepaid card?

Varo is not a prepaid card. It’s a traditional credit card, which means that any charges you make on your Varo Believe Card must be paid off at a later date. Guide to Varo Believe

That said, Varo makes it easy for you to pay off your balance on the Varo credit card. By automatically transferring money from your Varo bank account to your Vault account, Varo helps to ensure that you always have funds available to make on-time Varo credit card payments. These automatic transfers help you pay off your balance in full every month and stay out of credit card debt. Guide to Varo Believe

If you would rather apply for a prepaid card, take a look at our list of the best prepaid debit and credit cards.

Does Varo build credit?

Can you use the Varo Believe Card to build your credit history? Yes, Varo reports all activity on your Varo Believe credit card to the three credit bureaus (Experian, Equifax, and TransUnion), which means that if you use your Varo card responsibly, it can help you improve your credit score and establish a positive credit history. Guide to Varo Believe Guide to Varo Believe

Plus, Varo makes it easy to make on-time monthly payments on your Varo Believe Card – which is one of the best ways to build your credit score. Use the money Varo transfers from your bank account to your vault account to pay off your balance in full every month, avoid credit card debt, and build a history of on-time credit card payments.

Is Varo safe?

Is Varo safe? Yes. Varo bank deposits are FDIC insured up to $250,000, and Varo uses industry-standard, 256-bit AES level encryption to keep your personal information secure and private. Guide to Varo Believe

If you suspect that someone is using your Varo bank account or your Varo Believe credit card fraudulently, contact [email protected] or call Varo customer service at 1-800-827-6526. Then, use the Varo app to lock your Varo credit and debit cards to prevent additional fraudulent transactions. Guide to Varo Believe

Should you sign up for Varo Believe?

If you are interested in building your credit with a card that requires no security deposit, charges no monthly fees, and helps you pay off your credit card balance without additional interest, the Varo Believe Card might be a good option. Keep in mind that the Varo Believe Card is not fully launched yet, so if you’re looking for credit right now, you might want to consider other options. Guide to Varo Believe

While some people will benefit by signing up for Varo Believe, it’s always worth considering all of your options before choosing a credit card. If you want to earn rewards on every purchase, for example, ask yourself whether you might be eligible for a rewards credit card. The Varo credit card does not offer a traditional cash back, points or miles rewards structure, which might not matter to someone who is simply hoping to use Varo Believe to build their credit score and stay out of debt. It’s worth noting, though, that other credit cards might help you achieve the same goal while offering a few more benefits and perks. Guide to Varo Believe

Other credit cards to consider

If you are hoping to use a credit card to build your credit score or improve your credit history, start with our list of the best credit cards for people with inadequate credit.

The Discover it® Secured Credit Card, for example, is a credit-building card that offers rewards on every purchase: 2% cash back on gas stations and restaurants (for up to $1,000 in combined spending per quarter, then 1%) and 1% on everything else you buy. Plus, Discover will automatically match all of the cashback rewards you earn during your first year as a cardholder. Guide to Varo Believe

This card is a secured credit card, which means you’ll need to put down a small, refundable security deposit to access your line of credit. Discover will automatically review your account after seven months to determine whether you qualify to upgrade to a standard unsecured credit card.

If you haven’t started building a credit history yet, take a look at our list of the best credit cards for people with no credit. The Capital One Platinum Credit Card, for example, gives cardholders with limited credit experience the opportunity to practice responsible credit habits with a small initial line of credit. After six months, Capital One will review your account to determine whether you qualify for a higher credit limit. Guide to Varo Believe

The Capital One Platinum card doesn’t offer any rewards, but you won’t need to pay a security deposit to access it, which makes it a great option for people who want to get started with credit.

Bottom line

Although the Varo Believe Card has not yet fully launched, it has the potential to help people build their credit scores while staying out of credit card debt. Guide to Varo Believe

If you are interested in getting the Varo credit card in the future, you can sign up for a Varo bank account right now. Once the Varo Believe Card is fully available to the public, Varo will send invites to all bank account holders who are eligible to use the Varo credit card to improve their credit. Guide to Varo Believe

Nicole Dieker is a freelance writer with a focus on personal finance and habit formation. She spent five years as a writer and editor at The Billfold, a personal finance site where people had honest conversations about money, and she regularly teaches classes on how to build your income as a freelancer. Guide to Varo Believe