Varo Believe Card review: Build credit with 0% APR and no fees

Varo Believe Card review: Build credit with 0% APR and no fees

There’s no disputing that a secured credit card may help you build credit when used wisely. That said, secured cards often have minimum security deposits and high APRs. Plus, card issuers often do a hard credit check when determining if you qualify.

The Varo Believe Card is different. This no-interest card doesn’t require a security deposit or a credit check, and you won’t pay any fees either. Sound too good to be true? It isn’t, but there are a few crucial things to know before you apply.

Varo Believe Card

  • Annual fee: $0

  • Welcome offer: None

  • Rewards: Earn up to 6% cash back on qualifying purchases at select retailers

  • More details: No credit history is required to qualify, rewards automatically transfer to your Varo bank account once your cash-back balance reaches $5

APR

Unlike other secured credit cards — which often have a higher-than-average APR — the Varo Believe Card has a 0% APR. This means that you won’t need to worry about interest charges if you miss a payment or pay late. In fact, there are no fees of any kind, not even late fees.

Paying no interest or fees is a unique perk, but there’s one catch: If you miss a payment, you can’t use your card until your balance is repaid from your connected Varo bank account.

Annual fee

The Varo Believe Card has no annual fee, which helps you keep more money in your pocket.

Welcome offer

There’s no welcome offer with the Varo Believe Card.

Intro offer

You won’t get an introductory 0% APR on purchases made with your Varo Believe Card. Instead, you’ll get a 0% interest rate on every purchase. Balance transfers aren’t permitted with this card, so unfortunately, you can’t move a balance from a high-rate card to take advantage of this card’s 0% rate.

Rewards rate

Cardmembers earn up to 6% cash back on their purchases with select retailers. Varo’s past cash-back rewards retailers have included Circle K, Forever 21, Macy’s, McDonald’s, Nike, and PetSmart.

How to earn rewards

You can find a current list of cash-back offers by logging into the Varo app and selecting the “Perks” tab.’ It’s possible to earn cash back online or in-store, depending on currently available offers.

How to redeem rewards

Once your rewards balance reaches $5, Varo automatically deposits it into your connected Varo bank account.

Additional benefits

  • No credit check is required when you apply, which means applicants with no credit or poor credit can qualify. And without a hard credit check, your credit score won’t be affected by your application.

  • Varo reports your payments to the three major credit bureaus: Equifax, Experian, and TransUnion.

  • The automatic payment option (Varo Safe Pay) helps ensure you won’t miss a payment.

Who is the Varo Believe best for?

The Varo Believe Card is best for those who want to build credit. It’s also a good choice for existing Varo Bank customers, as you’ll need a Varo bank account and at least $200 in direct deposits in the previous 31 days to be eligible for this card.

This card is also ideal for users who want to set their own credit limit without having to put down a deposit. Your limit is the available spending amount in your Varo bank account, which can be as much as $10,000 per billing cycle.

Lastly, it’s important to note that while there are no fees for late or missed payments, doing so will be reported to the credit bureaus. Before you apply, make sure you’re able to manage payments in a timely manner to protect your credit score.

Varo Believe pros

  • No interest charges or fees of any kind

  • No minimum credit score or credit check to qualify

  • Can help you build credit with responsible use

  • Can earn cash back with select purchases

  • Spending limit will increase with your bank account balance

Varo Believe potential cons

  • If you don’t have sufficient funds in your Varo bank account to pay your card balance, your card will be unusable until it’s repaid

  • No balance transfers allowed

  • Cashback offers are limited to select retailers

  • Only one way to redeem cashback rewards

  • Spending caps apply — up to $2,500 per day for purchases, $1,000 per day for cash advances, and $10,000 per month total per billing cycle.

Where can you use Varo Believe?

Varo Believe is a Visa card, so you can use it anywhere Visa credit cards are accepted.

How to make a Varo Believe payment

  • Make automatic payments via Varo Safe Pay

  • Through the Varo app or online via linked bank account

  • By mail:
    Lending Department
    P.O. Box 108
    Draper, UT 84020

Varo Believe customer service info

Varo’s customer service team is available through the following channels:

  • In-app chat: Sunday-Saturday 8 am to 4:30 pm M.T.

  • Phone: 1-877-377-VARO, Monday-Friday 8 am to 4:30 pm M.T.

  • Submit a support ticket for questions about your account

  • Check out the bank’s FAQ page

Alternative cards to consider

The Varo Believe could be a great choice for Varo customers or those seeking a simple card with no interest charges, but it’s not right for everyone. If it doesn’t seem like the best option for you, consider the following secured credit cards, all of which could help you build credit when you make full, on-time monthly payments.

Capital One Quicksilver Secured Cash Rewards Credit Card

Why we like it: If you’re interested in a secured credit card that lets you earn flexible cash back, the Capital One Quicksilver Secured Cash Rewards Card could be good for your wallet. This card lets you earn 1.5% unlimited cash back on your spending, and you can redeem your rewards for cash or a statement credit.

Interested applicants can determine if they’re pre-approved for this Capital One card with no impact on their credit score. If approved, a $200 refundable security deposit is required with the Quicksilver Secured Cash Rewards Credit Card. Cardholders could upgrade to an unsecured version of the Quicksilver card with responsible use.

Read our full review of the Capital One Quicksilver Secured Card.

Capital One Platinum Secured Credit Card

Why we like it: The Capital One Platinum Secured Credit Card is a straightforward option if you’re interested in a card with flexible security deposit requirements. As with the Quicksilver Secured Card, Capital One lets you see if you’re pre-approved without a hard credit check. If you’re formally approved for the card, you can make a $49, $99, or $200 refundable minimum security deposit.

Capital One will also consider you for an automatic credit line increase after you’ve been a cardholder for six months. It’s possible to upgrade to an unsecured Platinum card when you use your secured card responsibly.

Read our full review of the Capital One Platinum Secured Card.

OpenSky® Secured Visa® Credit Card

Why we like it: Like the Varo Credit Card, the OpenSky Secured Visa Credit Card doesn't require a credit inquiry during the application process. This makes it a great option if you have a thin credit file or poor credit, as your credit score won’t dip when you apply. The minimum security deposit on this card is $200.

With good payment habits, OpenSky card members could qualify for automatic credit line increases every six months. There’s also the option to upgrade to an unsecured OpenSky® Gold Visa® Unsecured Credit Card.

Read our full review of the OpenSky Secured Visa.

This article was edited by Alicia Hahn

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers.