What the Varo Credit Card Is

Varo offers a cash-back credit card designed for people building or rebuilding credit. The card earns 2% cash back on all purchases with no category limits, no rotating categories, and no caps on how much you can earn. There is no annual fee. You can use it anywhere Visa is accepted.

Varo is a mobile-first bank, so you manage the card entirely through their app or website—there are no physical branches. The card itself is a physical Visa that arrives in the mail after you open an account. Varo also offers a checking account, savings account, and other banking products, but you do not have to use those to get the credit card.

The card is meant for people who do not yet have an excellent credit score. Varo reports your payment history to the three major credit bureaus (Equifax, Experian, and TransUnion), so on-time payments help build your credit over time. Late payments and missed payments also report, so the card works both ways.

Key Takeaways

  • The Varo card earns 2% cash back on every purchase with no annual fee, no bonus categories, and no spending caps.
  • You manage the account through Varo's mobile app or website; there are no physical bank branches.
  • Varo reports to all three credit bureaus, so consistent on-time payments build your credit history.
  • You do not need a Varo checking account to get the card, though Varo may offer account holders better terms.
  • The card has no foreign transaction fees, which is useful if you travel or make purchases from overseas merchants.

How to Open a Varo Credit Card Account

Start by visiting Varo's website or downloading their mobile app. You will need to provide your name, date of birth, Social Security number, address, and employment information. Varo will run a hard inquiry on your credit report, which temporarily lowers your score by a few points.

Varo does not publish a minimum credit score requirement, but the card is designed for people with fair to good credit—typically a score of 580 or higher, though approval is not may provide at any score. If you are denied, you can contact Varo to ask why, though they are not required to explain in detail.

Once approved, Varo will mail you a physical card, which usually arrives within 7 to 10 business days. You can use your account before the card arrives by adding it to a digital wallet (Apple Pay, Google Pay, or Samsung Pay) and paying with your phone.

Activating Your Card and Setting Up Payments

When your physical card arrives, you set up it through the Varo app or website. You will enter the card number and expiration date to confirm it is yours. The card is then ready to use when ready.

Set up a payment method before you make your first purchase. You can link a bank account (from any bank, not just Varo) to pay your bill automatically each month. Varo allows you to pay the full balance, a minimum payment, or a custom amount. Automatic payments reduce the chance you will miss a due date.

Your billing cycle is a set number of days (usually 25 to 30 days), and your statement closing date is the same each month. Your payment is due about 21 days after the statement closes. You can see all of this in the app under your account settings.

Understanding Fees and Interest Rates

Varo charges no annual fee, no foreign transaction fees, and no fees for balance transfers. There is no fee if you pay late, but late payments do trigger interest charges and report to credit bureaus.

The card has a variable interest rate (APR), which means it changes based on market conditions and your creditworthiness. Varo does not publish a specific APR range, so you will see your exact rate in your account after approval. If you carry a balance, interest accrues daily on the unpaid amount.

Cash advances (withdrawing money at an ATM using your credit card) are not available with the Varo card. If you need cash, you must use a debit card or withdraw from a checking account.

How Cash Back Works

You earn 2% cash back on every purchase, including online, in-store, and recurring charges. There is no minimum spending to earn cash back, no bonus categories that earn more, and no annual cap on how much you can earn. The cash back is real money that reduces your balance or can be withdrawn.

Cash back posts to your account once per month, usually around the same date each month. You can see pending cash back in the app at any time. Once it posts, you can use it to pay your bill, leave it as a credit on your account, or request a transfer to a linked bank account.

Cash back does not expire as long as your account is open and in good standing. If you close the account, you forfeit any unposted cash back, so wait until your monthly cash back posts before closing if you want to keep it.

Building Credit With the Varo Card

Varo reports your payment history, credit utilization (how much of your limit you use), account age, and other factors to Equifax, Experian, and TransUnion. This means the card can help build your credit if you use it responsibly.

To build credit fastest, make small purchases and pay them off in full each month. This shows lenders you can handle credit responsibly without paying interest. Keep your credit utilization below 30% of your limit—if your limit is $1,000, try not to carry a balance above $300.

Late payments hurt your credit score significantly and stay on your report for seven years. Even one missed payment can lower your score by 100 points or more. Set up automatic payments to avoid this risk.

Customer Service and Dispute Resolution

Varo offers customer support through the app, email, and phone. Response times vary, but Varo aims to answer within one business day for email and when ready for phone support during business hours. There are no physical branches, so all support is remote.

If you dispute a charge (claim a purchase was fraudulent or unauthorized), you report it through the app or by calling customer service. Varo investigates and typically resolves disputes within 30 to 60 days. During the investigation, the disputed amount is usually credited back to your account temporarily.

The card is protected by Visa's zero-liability policy, which means you are not responsible for unauthorized charges if you report them promptly. Report fraud as soon as you notice it.

Frequently Asked Questions

Can I use the Varo card if I do not have a Varo checking account?

Yes. You can open a credit card account with Varo without opening a checking account. However, Varo may offer better rates or terms to customers who also hold a checking account with them, so it is worth comparing if you are considering both products.

What happens if I miss a payment?

A late payment is reported to credit bureaus and damages your credit score. Interest accrues on the unpaid balance. If you miss a payment by more than 30 days, Varo may close your account and send the debt to collections. Contact Varo when ready if you cannot pay on time to discuss options.

Is there a credit limit, and can I request a higher one?

Varo assigns a credit limit when you open the account based on your credit history and income. You can request a limit increase through the app after you have made on-time payments for several months. Varo may approve a higher limit without running another hard inquiry, depending on your account history.

Does Varo offer rewards beyond cash back?

No. The Varo card offers only the 2% cash back on all purchases. There are no bonus categories, no sign-up bonuses, and no other rewards programs. The appeal is the flat 2% with no annual fee, not a complex rewards structure.

What should I do if my card is lost or stolen?

Report it when ready through the Varo app or by calling customer service. Varo will deactivate the card and mail a replacement, which usually arrives within 7 to 10 business days. You are not liable for unauthorized charges if you report the loss promptly. You can use your digital wallet while you wait for the replacement card.