We report payment history on your Varo Believe credit card, both positive and negative, to all 3 major credit bureaus – TransUnion®, Experian®, and Equifax®, which can help you build your credit if you make on-time payments. This history includes the date the account was opened, the balance of the Believe Card on the last day of the reported month, if applicable, the amount past due, the highest credit amount since the Believe Card was opened, and the date of your last payment. Keep in mind that Varo Believe will be just one piece of your overall credit health.
Third parties use credit bureau data to build credit-scoring models that generate individual credit scores. Two of these credit models are known as FICO and VantageScore. Varo has no role in the development of these credit scoring models, or in assigning individual credit scores, but does provide Varo Believe customers with free access to your VantageScore® 3.0 score provided by TransUnion®.
A variety of factors impact your credit, including payment history on all credit lines, utilization, derogatory marks, account age, and total number of credit accounts and inquiries—not all factors are equally weighted. Building your credit is a process that may take time, but the Varo Believe Program may help. Continued use of the Varo Believe Card is contingent upon timely payment.
What is the VantageScore?
VantageScore® was founded by the three major credit bureaus (Experian, Equifax and Transunion) in 2006 as a more inclusive alternative to the FICO Score. VantageScore® models score consumers who may not be scoreable by conventional models that require a minimum of six months of credit history or an update to the credit file at least once every six months.
What If I make a late payment?
If you turn off Safe Pay and don’t pay your monthly statement balance on time, you may become ineligible for Believe. To keep using your Varo Believe card, make on-time payments. To avoid missing a payment, turn on Safe Pay in your Varo App, by tapping Varo Believe Card > Card Details > Safe Pay. Safe Pay is completely free and automatic.
If you prefer not to use Safe Pay for automatic payments, you can make manual payments from a linked account or your Varo Believe Secured Account, or you can mail us a check. Keep in mind that if you choose to pay with a linked account or check, the secured funds in your Varo Believe Secured Account will be made available 3 business days after we receive your payment in full.
If I use all the money in my Believe Secured Account, does Varo Believe report high utilization?
Varo doesn’t report utilization to the major credit bureaus because Varo Believe has no pre-set credit limit. Credit bureaus or credit models may use data we do report (e.g., balance, highest credit) in defining attributes relating to credit utilization that are used in scoring models. Varo does not control how credit scoring models use the information that Varo reports.
Your spending limit is established by the amount you deposit into your Varo Believe Secured Account (shown as Available to Spend in the app). Your spending limit can’t exceed your Available to Spend 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.
How does the Believe Program appear on my credit report?
You’ll see Varo Believe on your credit report labeled as “Varo Bank.” It’ll show up under your Total Accounts with the date the account was opened and the account balance the last time it was reported to the credit bureaus.