Unsecured Credit Card: Unlike a traditional credit card, there are no fees or interest, and you don’t need a credit history to start. Also, applying does not impact your credit.With traditional credit cards, you are given a limit by the creditor. As you spend, the balance on the credit limit increases and this affects your credit utilization rate. This is based on how much of your limit you have spent. For traditional credit cards, credit utilization rate may impact your credit score.
At Varo, we want to help you build your credit history, especially if you are starting with damaged, poor, or no credit.
Secured Credit Card: Unlike traditional secured credit cards, Varo Believe requires no upfront security deposit and no fees.The balance on your Believe Card is still reported because, since we want to report all your on time payments to help improve credit.
Prepaid Cards: With prepaid cards, you load cash on the card to use the card for purchases. Unlike Varo Believe, Prepaid card use is not reported to credit bureaus, so they can’t be used to build credit like the Varo Believe card.