Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
Varo Credit Card Review: A Complete Guide to Building Credit in 2025
July 1, 2025
Looking to build or rebuild your credit history? The Varo Believe Secured Credit Card might be exactly what you need. This innovative secured credit card combines the security of a traditional secured card with modern banking features, making it an attractive option for credit-building beginners.
[[ SINGLE_CARD * {"id": "3367", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Credit Builders", "headerHint": "No Credit History Needed"} ]]
What Is the Varo Credit Card?
The Varo Believe Secured Credit Card is a secured credit product offered by Varo Bank, designed specifically for individuals looking to establish or improve their credit history. Unlike traditional secured credit cards, the Varo Believe card doesn't require an upfront minimum security deposit. Instead, it links directly to your Varo bank account, using your account balance to secure your credit limit.
Varo Credit Card Pros & Cons
Pros:
- No annual fee or minimum security deposit required
- Reports to all three major credit bureaus (Experian, Equifax, and TransUnion)
- No hard credit check needed for approval
- Unique Safe Pay option to prevent overspending
- Integration with the user-friendly Varo app
- Potential upgrade path to traditional unsecured cards
Cons:
- Requires a Varo bank account
- Limited credit limit based on account balance
- No rewards program or cash back
- No balance transfer options
- Cannot be used without sufficient funds in the linked account
Who Is the Varo Credit Card For?
The Varo Believe Secured Credit Card is ideal for:
- Credit beginners looking to build their credit history
- People recovering from past financial decisions
- Those who want to avoid traditional security deposits
- Varo Bank customers seeking an integrated credit solution
- Individuals who prefer digital banking solutions
The card's unique features make it particularly suitable for those who want to avoid overspending while building their credit through regular, on-time payments.
Comparing the Varo Credit Card with Other Credit Cards
When considering the Varo Credit Card, it's helpful to compare it with other popular options in the credit builder card category:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Credit Builder account
- Key features: No credit check to apply, reports to all three major credit bureaus
- Standout feature: No minimum security deposit required
Capital One Quicksilver Secured Cash Rewards Credit Card:
- Annual fee: $0
- Security deposit: A refundable $200 security deposit to get at least a $200 initial credit line
- Key features: 1.5% cash back on all purchases, automatic credit line reviews
- Standout feature: Earn rewards while building credit
Current Build Visa® Credit Card:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Build account
- Key features: No credit check required, reports to all three major credit bureaus
- Standout feature: Linked to Current banking app for easy fund transfers
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- Varo Credit Card excels in helping individuals who are looking to establish or improve their credit history
- Chime Card™ offers flexibility with no minimum deposit
- Capital One Quicksilver Secured provides cash back rewards
- Current Build integrates with banking app for convenient use
[[ CARD_LIST * {"ids": ["3069","3058", "5132"]} ]]
Consider Using Kudos
While the Varo Believe Secured Credit Card is excellent for building credit, maximizing your credit card benefits becomes easier with Kudos, a free AI-powered browser extension. Kudos helps you make the most of your credit cards by automatically suggesting the best card to use for each purchase, potentially earning you up to 5X rewards during special Flash Boost events.
If you're looking to get more out of your credit cards, Kudos is the best free shopping app to use when you shop online. They're currently offering $20 back after your first eligible purchase — just sign-up for free with code "GET20" and make a purchase at a Boost merchant.
Our Expert Takeaway
The Varo Believe Secured Credit Card stands out in the secured credit card market with its innovative approach to security deposits and credit building. While it may not offer rewards or cash back, its integration with the Varo banking ecosystem and user-friendly features make it an excellent choice for credit beginners or those rebuilding their credit history.
Varo Credit Card FAQ
What is the annual percentage rate (APR) for the Varo Credit Card?
The Varo Believe Secured Credit Card doesn't charge interest because you can't carry a balance – purchases are deducted directly from your linked Varo account.
How does the Varo Credit Card's secured account work?
Your credit limit is determined by your Varo bank account balance, eliminating the need for a traditional security deposit.
Does Varo perform a hard credit check?
No, Varo doesn't perform a hard credit check when you apply for the Believe Secured Credit Card.
Can I upgrade to an unsecured credit card with Varo?
Yes, Varo offers an upgrade path to traditional unsecured cards based on your payment history and credit score improvement.
How does credit reporting work with the Varo Credit Card?
Varo reports your payment history to all three major credit bureaus monthly, helping you build credit with responsible use.
Unlock your extra benefits when you become a Kudos member
Turn your online shopping into even more rewards
Join over 400,000 members simplifying their finances
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)