Varo Believe Credit Builder Card (Improving The Score 2023)

varo card

Building a good credit score is fundamental when you need to apply for loans and mortgages. However, without a good credit score, you can find accessing these services and products very difficult.

Varo Credit Builder credit card is a good way to improve your credit score as long as you repay the balance on time and if you can even qualify for the card. 

varo believe infographic

About Varo

Varo is the first fintech company in the United States that got awarded the coveted banking license in 2020. 

The bank offers a bank account without fees, along with a savings account, cash advances, and a secured credit card. 

Accounts have no minimum balance, no fees for overdrafts or transfers, no fees at Allpoint ATMs, and no costs to substitute your debit card. 

Varo is simply a fully-functioning bank account with a range of in-app features designed to make personal banking more accessible, like instant money transfers and early payday.

About Varo Credit Builder

Varo Credit Builder Card is a flagship financial product that helps clients improve their credit scores. It was launched a couple of years ago under the name Varo Believe.

Simply transfer funds from the Varo bank account to the Believe Secured account to set your spending limit. 

Now, use the credit card for your purchases – from gas stations to subscriptions. 

The funds that are already on the credit card will be automatically used to pay off your credit bill on time each month. To make this happen, you have to enable “Safe Pay.” Once you make full payments, Varo will use this information to report to the three well-known credit bureaus.

I love the idea of having this “Safe Pay” feature because it helps you pay your statement balance in full and on time. In addition, you can also use your Varo Believe Card to make purchases up to your credit limit.

If you keep up with the timely monthly payments, your credit score improves, and you can now access more financial products. Varo also reports any negative payment experiences to the credit bureaus. Because of this, it’s advisable to meet your credit obligations in full every month.

READ ALSO: 6 Banks Like Varo Money (Banking Apps in the US)

Pros & Cons

ProsCons
No APRA late fee of $15
No monthly account feesLate and negative payments are reported to credit bureaus
The application doesn’t affect credit scoresYou must have $500+ or more in qualified deposits to apply
No security depositYou need to have no negative balances for the last 90 days
The bank reports to 3 credit bureaus
Earns cashback
You can make purchases up to your credit limit

How to Sign Up For Varo

Applying for the credit builder card is pretty straightforward. In order to get the card, you naturally need to open a Varo account first. 

The advantage is that Varo has a mobile app, available both on the App Store and Google Play, that you can use for the application process.

To be eligible for a credit builder card from Varo, you’ll need the following:

  • A Varo bank account
  • Be older than 18 
  • Have an SSN
  • Be a US citizen or resident
  • Have a minimum of two direct deposits that amount to $500 or more in the past 90 days
  • An active Varo bank account with no negative balances for 90 days

To open a Varo account, you need to fill in your information on the website:

  • Email address 
  • US phone number
  • Password 

The bank will also require additional personal information and verification of identity. You can also add a savings account and finish the application.

For verification purposes, Varo will check your credit score. However, this will not in any way affect your score. After confirmation, you won’t need to pay any annual fees, minimum deposit, or APR, and you can start building a reputable credit history.

The toughest requirement for Believe is to have a minimum of two deposits worth $500 or more in the past 90 days. For that reason, you’ll need to wait for this period to end before you become eligible for the credit card. 

Additionally, you’ll also need to keep your account active for the same period, use the card and ensure you don’t have zero balances.

After that, you can even check via the app whether you are now eligible for the Believe credit card.

READ NEXT: How to Convert Swagbucks into Cash App (Workaround)

How to Build Credit Score With Varo?

making mobile payment

If you’re not sure how Varo helps you build your credit score, here are the two most important things. You’ll need to make timely payments in full to improve your score.

Without these two, you’ll keep having a poor credit rating. Here’s how the Varo Believe Program could help you build your credit score.

Timely Payments

As we already mentioned, you need to move funds from your bank account to the Believe card to make payments. This also determines your spending limit.

As long as there are enough funds in the account, your credit card will be paid off on time. This way, your score improves, and you can take other loans and mortgages in the future.

Keep in mind that Varo charges $15 for late payments. Such late payments reflect negatively on your credit score because Varo also reports these negative payments to the three credit bureaus.

Pay the Amount in Full

In addition to making timely payments, you should also pay the amount in full. This way, your score stays positive and continues improving.

When your debt is paid in full, your credit history shows that you are good at making credit payments. This is good for you in the future, especially because it implies that you are more likely to pay full payments.

The key to boosting this score is ensuring that the Believe account always has funds. You can either move funds or use the card to make purchases. It will come in handy when Varo needs to inform your rating to the credit bureaus.

Cashback and rewards

varo believe card

Spending money can be fun. What’s even more fun is when you get some of it back. We’re talking about real money and not stupid points. 

To avail of Varo’s cash-back feature, find a deal you like in the Varo app by tapping on “Perks” from the app’s home screen. Next, filter by cashback category, and choose the deal you want. 

Check out using your Varo card, but first, follow the link in the deal. See your cashback rewards anytime in the “Perks tab” within 3 and 14 days.

The good thing is that every time you reach $5, the cash is deposited on autopilot into your Varo account.

To check the status and see your total cashback balance, navigate to the Varo app and tap “Perks.” the info is at the top right-hand corner of the screen.

Let’s just repeat this again, you have to make your purchases through the links in the app to receive cashbac.

Conclusion

The Varo credit builder is an excellent alternative if you need don’t have any credit history. They just launched the credit builder card under the Varo Believe program to enable customers to build their scores. 

Once you make payments, they are reported to the credit bureaus to help improve your history and rating.

Varo credit builder is an excellent choice for Millenials and Gen Z’ers who need to start building a good credit score. 

For them, this is a perfect starting point as long as they can make timely payments and find ways to maintain a positive history. Varo can certainly kickstart this process for them and you.

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