The Varo Visa debit card is not prepaid because it has a Varo Bank account to work with. By accessing this option, you will be part of one of the complete bank accounts available so far.
To use your card, you must have funds in the Varo current account you designed in advance. On the other hand, the Varo credit card has the benefit of having no fees or APR; the mission is to help you have better credit.
How does the Varo credit card work?
Let’s start by talking about the benefits of the Varo credit card. As we mentioned, it is a no-fee, no APR option to help you improve your credit by avoiding debt or additional interest charges.
Whenever you make a transaction with your Varo credit card to buy or pay for any product or service, the bank will earn an automatic withdrawal from your Varo bank account and transfer it to a Vault account.
That way can use the balance collected in the Vault account to pay off your credit card balance in full each month. This way, you can ensure you stay current and improve your credit. The Varo card is not prepaid; it is a traditional credit card.
The fact that it is prepaid means that you can pay all the changes you make on the card later, on the date indicated by the bank. With this product, you can improve your credit because Varo informs the three credit bureaus about your transactions with their cards.
Bank accounts available with Varo
To apply for their products, you must first have a bank account with the bank. Before you begin your applications, you must know the options available to you to choose the one that best suits your needs.
Varo Checking Account
Known as Varo Bank Account, it is an alternative that does not charge monthly maintenance fees and does not require a minimum balance available in the account to keep it active.
To register and have your checking account, you must provide the system with a government-issued ID and your social security number. In addition, you must be at least 18 years old and have a mobile device where you can access the Varo mobile application.
You enjoy early access to direct deposit payments among your benefits with Varo. With this account, you can receive deposits the same day they are sent or up to two days before the stipulated payment date.
You can easily obtain cash through one of its more than 55,000 ATMs distributed in different areas of the country. Sending money to other Varo users is free of commissions and is received instantly.
Varo Savings Account
The savings account is part of Varo’s options, it also has no minimum deposit to start using it, and you do not need to keep a constant amount of money. The Varo savings account currently offers an annual percentage yield of 0.50% on all your balances.
On the other hand, you have the option to earn a substantially higher APY of 5.00%, but you must meet some monthly requirements such as:
- Having a daily savings balance of $5,000 or less in a calendar month
- Receive direct deposits of $1,000 p or more during the qualifying period
- Enjoy balances greater than or equal to $0.00 in your savings accounts for a full month
Other Varo Bank Services
In addition to the accounts mentioned above, Varo has other alternatives available to enhance your benefits. One of its great benefits is Varo Advance. It is a financial aid that you will be creating to avoid overdrawing your account.
Another option is Varo Believe; although everything is marked “coming soon,” it will be a program to help you improve your credit efficiently. It would help if you had an active Varo account and no negative or past due balances for this last account.
With the credit card offered with Varo Believe, you will have a credit limit equal to the available balance in your secured Varo Believe account. It will also report your payment history to the three major credit bureaus.