Varo Believe has no minimum security deposit, no annual fees, and no APR.1
Varo Believe has no minimum security deposit, no annual fees, and no APR.1
It can be tough qualifying for credit cards or loans with little to no credit history. After all, you need to have credit products to start building credit.
A secured credit card, like the Varo Believe Card, gives you an opportunity to either rebuild credit or start building credit from scratch. It doesn’t matter where your current credit history stands.
With a traditional secured credit card, you can access a line of credit by putting down a security deposit. It’s typically much easier to qualify for secured credit programs compared to unsecured credit cards because the deposit acts as collateral.
The security deposit is usually refundable, and the security deposit amount and credit limit given vary depending on the program. The Varo Believe Program offers one of the best secured credit cards because it has no minimum security deposit, and the money you put toward your deposit goes straight toward paying off the card.
Just like an unsecured credit card, you can use your Varo Believe Card on everyday purchases, and you’ll receive a statement at the end of the month. Paying off your statement on time and in full each month is key to building credit because all your payments will be reported to the three major credit bureaus.
You can think of secured cards as a hybrid between prepaid cards and unsecured credit cards. Like a prepaid card, secured credit cards require money in the account before you can use the card. Unlike a prepaid card, however, the money isn’t taken out of the account when you make a purchase. Instead, you use your credit line like you would with an unsecured credit card.
With a secured credit card, you’ll get a statement at the end of the month and your payments will be reported to the credit bureaus. That can help you build, or rebuild, a positive credit history.
While a traditional secured credit card can be beneficial for credit building, there can be a few drawbacks.
First off, many secured card issuers perform credit checks to determine whether you qualify for the card. This isn’t helpful when you’re actively trying to rebuild credit, as credit checks can negatively impact your credit score.
On top of that, many secured credit card programs charge high annual fees, maintenance fees, and interest rates. With all these fees, it’s easy to fall into runaway debt instead of building credit.
Looking for a secured credit card to help build credit?
Applying for Varo Believe is simple and, more importantly, won’t impact your credit score.
To get on the path to credit building with Varo Believe, you’ll need a Varo Bank Account and a minimum of two direct deposits totaling $1,000 or more in the past 90 days. Additional qualifications apply.
Once you’re approved, you can use your Varo Believe Card anywhere Visa® is accepted.
1. Add money to set your spending limit
2. Use your Varo Believe Card.
3. Pay your balance on-time and in-full.
4. See your credit score directly in the app.
We’ll report your payments to the three major credit bureaus to help you start building a positive credit history. It’s important to pay on time! Late payments may negatively impact your credit, so on-time payments are critical to building your credit score.
Best of all, there’s no minimum security deposit, no maintenance fees, no APR, and no annual fee.
Varo Believe Credit Card | Other Secured Credit Cards | |
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No minimum security deposit | As much as $500 deposit required2 |
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No annual fees | Many fees |
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No APR | Up to ~23%3 |
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Can pay card balance with secured deposit | Fully-locked security deposit |
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Helps you avoid runaway debt*** | ||
No hard credit check to apply | ||
Credit Reporting |
Yes, like all credit products, there’s a possibility you won’t qualify for various reasons. However, because secured credit cards usually require a deposit in exchange for a credit line, it can be easier to qualify for one.
A secured credit card requires a deposit, while an unsecured credit card doesn’t. It’s typically easier to qualify for a secured credit card because the issuer can keep the deposit as collateral.
The deposit for a secured credit card depends on the program. While you need to be prepared to put down up to a $500 deposit for some cards, the Varo Believe Program has no minimum security deposit.
The limit typically depends on your security deposit amount and varies by program. With Varo Believe, you set your own spending limit. Instead of a minimum security deposit, the money you set aside sets your spending limit and goes straight toward paying off your Varo Believe Card.
Secured cards help build credit by reporting your payment history to the major credit bureaus. You can build a positive payment history and improve your credit score when you make your monthly payments on time and in full. Keep in mind, late payments are reported and may negatively impact your credit.
© 2022 Varo Bank, N.A. All Rights Reserved
Varo Bank, N.A. Member FDIC. The Varo Believe Card is issued by Varo Bank, N.A. pursuant to a license from Visa® U.S.A. Inc and may be used everywhere Visa credit cards are accepted.
1The Varo Believe Card is a secured credit card designed to help you build your credit. The card reserves the money deposited into your Varo Believe Secured Account as security to pay your credit card balance on time and in full every month. Varo then reports your payment history to the three major credit bureaus and customers can view and monitor their credit score directly in the Varo Bank app. Your credit limit cannot exceed your Varo Believe Secured Account balance, Bank Account balance, up to $2,500 for purchases and $1,000 for cash advances per day, totaling no more than $10,000 total per billing cycle.
A variety of factors impact your credit including payment history, utilization, derogatory marks, account age, total number of accounts, and inquiries–not all factors are equally weighted. Building your credit may take time and is a process, but the Varo Believe Program may be able to help.
**Your credit limit can’t exceed your available to spend balance in your Varo Believe Secured Account, up to $2,500 per day for purchases or $1,000 a day for cash advances, totaling no more than $10,000 total per billing cycle.
2According to Nerdwallet, most secured credit cards require a deposit of $200 to $300.
3According to a recent analysis by Credit Karma, secured credit card APR can range up to ~23%.