Varo unveils the Varo Believe Program for American to build Credit

By Pavithra R

Varo, the digital national bank, has unveiled the Varo Believe Program, a credit building product that includes Visa credit card and credit monitoring.

The newly launched program aims at the 45 mn Americans who are “credit invisible” (who have an insufficient credit history to qualify for credit) and for those who are seeking to boost their credit score. 

The Varo Believe Program is a new kind of credit card program that is linked to a Varo bank account to avoid runaway debt. The card reserves the money that is spent from a linked Varo bank account in real time into a secure Vault Account to pay the user’s credit card balance on time and in full every month.

“A healthy credit score is so important to many of the foundational aspects of our daily lives – renting an apartment, accessing utilities, buying a car, or even applying for a job in many cases. And access to affordable credit is fundamental to long-term financial health. That’s why we knew that Varo’s first credit card needed to lead with innovation and directly target one of the biggest challenges facing millions of American consumers today: responsibly building, repairing, and accessing credit,” said Colin Walsh, CEO and founder of Varo Bank, N.A.

The program is a unique credit building program with no upfront security deposit, no APR, no application fees, no monthly or annual fees, and no foreign transaction fees. Varo then reports the user’s payment history to the 3 major credit bureaus, and customers can view and monitor their credit score directly in the Varo Bank app for free.

Varo’s commitment to help customers build and maintain a strong credit profile is part of the bank’s broader vision to build social and economic resilience within the communities. The bank is reimagining the traditional banking experience by offering all digital premium banking products designed to support financial inclusion and opportunity for its customers and their communities.