Understanding Varo Cash Advance 2023 [Comprehensive Guide]
A lot of us know that feeling of dread as we approach month-end, worrying about whether we will be able to cover all our expenses with the little cash left in hand. This is where Varo comes in, offering a solution to eliminate the need to panic over such situations.
Understanding Varo Cash Advance and how it acts as a safety net for these financial uncertainties has been an absolute lifesaver for many, including me.
This method of short-term borrowing has helped me overcome many a cash crunch and I’m witnessing firsthand its increasing popularity.
In essence, Varo Cash Advance offers swift access to extra funds when you need them the most, no more waiting around for payday.
With just a few taps on your cell phone, you can resolve your financial issues without breaking a sweat or losing sleep. Let's break down this fantastic feature and its benefits further…
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What Is Varo Money?
Varo Money is an online-only bank offering its customers various financial products and services. Founded in 2015, Varo is headquartered in San Francisco, California, and is a Federal Deposit Insurance Corporation (FDIC) member.
Varo offers features such as checking and savings accounts, debit cards, cash advances, and no-fee ATM access across the country.
The company aims to provide its customers with convenient and affordable banking services that can be accessed easily through mobile devices.
With Varo Bank, you can get up to 6% cashback for using your cards and rack up real cash in your Varo Account.
How To Open A Varo Account?
Opening a Varo account is a swift process that can be done online through the Varo app. Here are the steps to follow:
- Download the Varo app: The first step is to download the Varo app from the App Store or Google Play Store.
- Start the application: After downloading the app, open it and click the "Get Started" button.
- Provide personal information: You will need to provide your personal information, including your full name, address, date of birth, and social security number.
- Verify your identity: Varo will ask you to take a photo of your government-issued ID, such as a driver's license or passport, to verify your identity.
- Create your account: Once your identity has been verified, you can create your account by choosing a username and password.
- Deposit money: To start using your account, you must deposit money. You can do this by setting up direct deposit, transferring funds from another bank account, or depositing a check through the Varo app.
- Activate your debit card: Once you have money in your account, you can order a Varo Visa debit card through the app.
Once you have completed these steps, you'll be ready to use your Varo account for all your banking needs.
Understanding Varo Cash Advance
Cash Advance is a service offered by Varo that allows customers to withdraw money from their accounts before their next paycheck arrives. It's a short-term loan to help customers cover unexpected expenses or cash flow gaps.
A cash advance is available to eligible Varo customers with a direct deposit set up and a history of regular income deposits. Customers can request a cash advance through the Varo app and receive it directly in their bank account.
The cash advance amount is usually limited to a percentage of the customer's regular income, and a fee is charged for the service. Varo Cash Advance can be a convenient and quick way to access cash when needed.
Still, it's essential to use it responsibly and avoid relying on it as a long-term solution to financial difficulties.
What Are The Benefits Of Varo Cash Advance?
Varo Cash Advance is a great way to access cash quickly and easily. With Varo Advance, you can borrow up to $250 to cover bills or any unexpected expenses.
There is no fee for instant access to your funds, and you can start with as little as $20. You may also qualify for higher limits over time.
Advance is a convenient and cost-effective alternative to traditional bank loans, often requiring lengthy application processes and high-interest rates.
With Varo Advance, you can get the money you need without worrying about hidden fees or long wait times. You don’t have to worry about over-drafting your account since Varo Advance will provide up to $100 of instant cash access if needed.
How To Use Varo Cash Advance?
To avail of Cash Advance, you must be eligible for the service. Here are the steps to follow to request a cash advance:
- Check Eligibility - You can check if you're eligible for Advance by logging into your account through the Varo app and going to the "Accounts" tab.
- Request A Cash Advance - If you're eligible, you can request a cash advance by selecting the "Varo Advance" option in the app's menu and following the instructions provided.
- Choose The Amount - You can choose the amount you need up to your maximum cash advance limit.
- Receive Funds - If your request is approved, the funds will be deposited directly into your account, typically within minutes.
- Repay The Advance - The amount of the cash advance, plus the fee, will be automatically deducted from your next direct deposit. It's important to note that you cannot request a cash advance if you have already reached your cash advance limit, and you must wait until the advance is fully repaid before requesting another one.
What Are The Eligibility Criteria For Varo Cash Advance
To avail benefits of Cash Advance, you must meet the following eligibility criteria:
- A Varo bank account that has been active for at least 30 days and is not overdrawn.
- An Active Varo Debit Card
- You must have received at least $1,000 in direct deposits to your Varo checking or savings accounts within 31 days.
You can get a $20 advance anytime if you meet all these requirements. For advances worth more than $20, Varo will examine your repayment history on past advances and account profile.
What Is Varo Cash Advance Limit?
Varo Cash Advance Limit is a service that allows you to borrow up to $250 to cover bills or any unexpected expenses.
You can start with a $20 limit and qualify for higher limits based on your direct deposit amounts and repayment history.
With Varo Advance, you will only be charged a simple, flat fee for advances over $20 and there is no fee for instant access to your funds.
How To Increase Varo Cash Advance Limit?
Your cash advance limit with Varo is not set in stone. In fact, it's quite possible to increase your limit if you know the right steps to take. So how do we go about doing just that?
Improve your credit score
The importance of a good credit score cannot be underestimated when it comes to increasing your cash advance limit with Varo.
Varo determines your eligibility and limit based on specific criteria, and your credit score plays a significant role in this.
Regular and timely payments of bills, avoiding maxing out your credit cards, and reducing the number of hard inquiries on your credit report can substantially improve your credit score.
Thus, maintaining a good credit score increases your chances of getting a higher cash advance limit.
Increase Your Income
Your income is another determining factor that Varo considers when setting up your cash advance limit. The higher your regular income, the more likely you will be offered a more significant cash advance limit.
So if you're looking at bumping up that amount, increasing your income is one way to go about it.
This could involve negotiating a pay rise, adding another source of income or even switching jobs if it results in more significant paycheck.
Use Your Varo Bank Account Frequently
Frequent use of your Varo bank account also influences how much you can get on cash advances from them.
Regular deposits into this account show them that there's constant money flow, which builds trust and confidence in offering higher advances.
Pay off Your Existing Varo Advance Balance
Another key tip is ensuring any existing Varo Advance balance is paid off on time or early if possible. This impresses upon them that you can manage borrowing responsibly, significantly boosting their trustworthiness in providing higher advances.
Remember, consistency here is crucial - showing regularity in paying off an existing balance can get them more inclined to offer more significant limits since they are assured of repayment.
Contact Varo Customer Support
If all else fails or if you feel like you've ticked all boxes but still aren't getting the higher limits desired, don't hesitate to reach out directly to Varo Customer Support. They're always ready to guide and provide necessary assistance which is often very helpful.
Follow these strategies consistently and see yourself inching towards raising that much-needed cash advance limit with Varo.
What Is Varo Checking Account?
Varo Checking Account is an online checking account allowing you to bank anywhere without monthly fees.
Varo offers a Visa debit card so you can easily access your funds wherever you go with over 55,000 Allpoint ATMs worldwide for free and manages your money in one easy-to-use banking app. You don't need a minimum balance requirement or have to pay any hidden fees.
Varo Checking Account is FDIC insured and provides you with bank-level security. You can also access your account on the go through their app, which allows you to manage your money in one place with secure and reliable banking.
What Is Varo Savings Account?
Varo Savings Account is an online savings account that offers customers up to 5.00% APY on their deposits.
With no monthly fees and minimum balance requirements, Varo Savings Account is a great way to maximize your money and grow your savings. Customers can open an account with Varo in minutes and earn interest immediately.
Varo Savings Account offers two interest tiers so customers can earn more depending on their account balance. For balances up to $5,000, customers can earn 5.00% APY; for balances over $5,000, they will earn 3.00% APY.
The bank also has a sizeable fee-free ATM network, so customers don't have to worry about paying extra fees when withdrawing cash from their accounts.
Varo Cash Advance Alternatives
If you find that Varo Cash Advance isn’t quite cutting it for you, don't fret. There are several straightforward yet effective alternatives to explore.
In this article, we are going deeper into four of these options that may work out perfectly for you: Earnin, Dave, Brigit, and Possible Finance.
Earnin
Earnin is an app allowing you to access your paycheck before your payday arrives. You get to withdraw the cash you've already earned but haven't received yet.
No interest or hidden fees are involved, but users can leave a 'tip' for the service.
How it works:
- Connect your bank account and upload your employment info.
- As you work throughout the week, your hard-earned money is tracked.
- You can then draw from the accumulated sum up to $100 per day.
What Stands Out:
Earnin prioritizes transparency and affordability - they believe everyone should have access to their pay as they earn it.
Dave
Dave is an app that provides small cash advances to cover upcoming costs before payday, ensuring you don’t fall short on cash.
How it Works:
- Sign up for a $1/month membership cost.
- Connect your bank account and provide employment details.
- Get an advance of up to $75 directly deposited into your account.
What Stands Out:
On top of cash advances, Dave keenly observes your spending habits giving personalized budgeting tips and alerts when you are at risk of overdrafts.
Brigit
Brigit helps facilitate cash flow between paychecks by offering instant cash advances up to $250 without a credit check.
How It Works:
- Set up with a monthly subscription fee of $9.99.
- Link up your checking account for monitoring.
- Access quick advances straight into your checking account whenever needed.
What Stands Out:
In addition to delivering swift cash inflows without any late fees or penalties, Brigit implements artificial intelligence to predict future income disruptions which can go a long way in steering clear of overdraft fees!
Possible Finance
Possible Finance offers small personal loans rather than paycheck advances with a quick application process via their mobile app.
How It Works:
- Complete a short application on the app, typically approved within minutes
- If approved, funds are sent immediately or there's an option to receive the loan via a Visa debit card in 30 minutes for an extra fee.
- Start with loans as low as $50 and build from there based on repayment success.
What Stands Out:
Possible Finance's empowerment approach makes it unique – successfully paying back their loans helps you build credit!
Each of these mentioned alternatives present their own set of advantages and ways of functioning towards meeting immediate financial needs in its own way – opt for what fits you best and lets you breathe easy!
What Is Varo Believe?
Varo Believe is a credit card program designed to help people build their credit. It is linked to a Varo bank account, which helps avoid runaway debt and provides the opportunity to earn rewards.
The Varo Believe Secured Credit Card prevented overspending and missed or late payments. The card offers no annual or foreign transaction fees and free access to your FICO score.
Additionally, it allows you to set up automatic payments from your Varo Bank Account, so you can easily keep track of your spending and make sure you never miss a payment.
FAQs Regarding Varo Cash Advance
How To Overdraft Varo Card?
Varo eliminated overdrafts in 2020 and offers no overdraft protection services. This means that if you don't have enough money in your account to cover a purchase, the transaction will be declined.
How Do I Get A Higher Varo Advance?
To Increase your Varo Advance limit, maintain a good credit score, have a stable income, and use your Varo Bank account frequently. You can also contact Varo customer support for assistance in increasing your limit.
Am I Eligible For Varo Advance?
Varo's overdraft protection is available to customers who have had their account for at least 30 days, have a direct deposit of at least $1,000 per month and have a Varo Debit Card.
How Long Does Varo Advance Take To Deposit?
With Varo Advance, you can deposit up to $250 into your bank account in minutes.
Conclusion
Varo Cash Advance is a great way to access fast funds whenever needed. With no fees or interest charges, it’s a convenient and affordable way to bridge the gap between paydays.
Whether you’re dealing with an unexpected expense or need some extra cash, Varo is the perfect solution for getting the money you need quickly and easily.
With this Varo Cash Advance blog, you will now have a clear and comprehensive understanding of Varo Cash Advance and how it can benefit you.
Michael Restiano
I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.