Varo is a well known money transfer app that allows you to send and receive money online. Few Varo users are aware of the fact that you can borrow money from Varo.
Varo features a loan option, "Varo Advance" which allows users to borrow money from the platform by getting cash advance of up to $100.
This actually similar to Chime SpotMe that allows users to borrow money from Chime.
A Cash Advance is a type of short term loan that allows you to get money quickly when you need it and Cash advance products often come in variety of sizes.
Incase you find yourself in a situation where you need money as soon as possible, then Varo Cash Advance is a good option for you.
Though you can borrow money from Varo, numerous users often prefer using cash advance apps that work with Varo because the loans they offer ranges up to $200 or even $500 for apps like Branch.
So far as you are eligible for Varo Cash advance, then you can easily obtain a loan from Varo.
Want to know how to borrow money from Varo? then stay glued to this article as I will show you how to obtain a loan from Varo.
Table of Contents
What is Varo Cash Advance?
Though you can obtain a short term loan from your bank, Varo advance is a better option provided you are in need of the money quickly.
With respect to Walsh, founder and CEO of Varo Bank, "Varo advance was created to meet the short term credit needs of millions of Americans, and it continues our commitment to provide customers the strongest possible foundation for their financial success, with instant availability and low transparent pricing".
If you are eligible for Varo Cash advance, you can request a Cash advance of up to $100 immediately in the Varo bank app.
Provided you meet up with the necessities, Varo Advance provides a Cash Advance to your bank account using the Varo bank app.
Varo advance provides just one cost per advance and no APR , whereas other cash advance solutions can have large fees and APRs.
ALSO READ: How to Borrow Money from Chime [Complete Guide].
How Varo Advance Works
Varo Advance allows qualified users to access up to $100 cash through the Varo Bank app.
Based on the advance amount, it has a single flat cost and you are able to make as many payments as you want, whenever you want and in what ever amount. But have in mind that you will have to pay it back in full within 30 days.
An Advance is a recurring loan that is deposited into your Varo bank account and must be returned.
Before being able to obtain cash advance from Varo, there are some requirements.
In order to keep on receiving advances, you must have made at least $1,000 in direct deposit into your Varo Bank account or Varo Savings Account in the last 31 days and neither account can be overdrawn, stopped or cancelled.
Direct deposit here must an electronic deposit from your employer or the government of your paycheck, pension, or government benefits (such as Social security or unemployment insurance).
Person-to-Person payments such as Venmo are not considered as direct deposit. A direct deposit is when funds are deposited using a Varo Money routing number.
Your qualifications will be assessed daily for $20 advances.
You may incur fees for advances more than $20 and your payment history and qualifications will be evaluated periodically to determine if your credit limit should be increased.
Paying on time will help you maintain a good payment history and you will always be eligible to borrow any time you want.
Varo Advance Regular Fees
Below is a table that shows the various fees that comes with borrowing more than $20 from Varo.
Eligibility Requirements to Borrow Money From Varo
There are specific requirements that every financial platform has established in order to be eligible for a cash advance, or to put it another way, any dependable lending program.
The same is true of Varo, as it has a certain eligibility requirement that you need to be aware of. As long as you take care of the following requirements, qualifying for the Varo Advance won't be an issue.
- Your Varo account must be at least 30 days old to qualify for the Varo Advance. If you are a newbie, then you won’t be allowed to borrow money from Varo Advance feature.
- It is important that your account holds no negative credit and that there is no overdraft.
- Your account must be active and should have received at least $1000 via Direct Deposit in the last 30 days.
- Make sure no amount is yet to be paid back to the Varo. As long as there is no pending borrowed amount, you are good to proceed.
How to Borrow Money From Varo
Varo Bank lets its customers to borrow up to $100 through the Varo app. Before you can borrow the amount you need, you must make sure that you meet with the eligibility requirements of Varo cash advance.
Below are the steps involved in borrowing money from Varo:
- Open Varo app - ensure its the latest version of the app.
- Tap "Get an Advance".
- Select the amount to borrow (between $25, $50, $75 and $100 - which are the only available options).
- Setup Automatic Payment.
- Get your Varo Advance.
How to Repay Varo Loan
In order to repay your loan with ease and without any fear of forgetting to repay, you will have to set up an automatic payment to your Varo Advance account between 15 and 30 days from the day you get your advance.
You must return the money within the agreed time period or you will be penalized for that.
The best way to repay your Varo loan is simply keeping your account balance positive with a balance that is slightly greater than the amount you borrowed.
If you receive direct deposit into your Varo account, Varo will quickly deduct the amount that you owe them.
What to Consider When Getting a Cash Advance
Before you go ahead to borrow money, it is necessary that you take into consideration certain points. Below, I will show you some of the most important points to consider.
Borrowing money from a bank or ATM in person might take longer than borrowing cash from Varo Advance.
With Varo advance, you can obtain cash just with a few clicks without even showing up in person.
Most of the cash advances have a high cash advance cost as well as a higher annual percentage rate.
You will notice that Cash advance products charge interest of 5% of the advance amount.
Any time you borrow money from Varo Advance, you will have to pay $5 charge and won't even have to bother about interest.
But do not fail to pay back your advance in 30 days, so that you will be able to borrow again.
Getting a cash advance does not have any effect on your credit score.
On the other hand, a cash advance on your credit card will be added to your balance and this can push your credit utilization rate above 30%, therefore negatively impacting your credit score.
Using Varo advance does not affect your credit in any way.
Final Thoughts: How to Borrow Money From Varo
If you need money as soon as possible, then Varo is a convenient platform for you to obtain cash advance.
Varo allows eligible users get cash advance from the platform up to $100 which will be repaid on an agreed timeframe.
That should explain how to obtain a loan from Varo! The Varo Cash advance is ideal for borrowers seeking quick loans. given that they meet the requirements, of course. The perfect substitute for conventional banking is Varo. It also provides accessibility to at least 55,000 Allpoint ATMs.
Frequently Asked Questions
Can I borrow money from Varo?
Yes. You can take loan from Varo is you are an eligible applicant. The app provides up to $10 but there are certain fees to look into. You are free to make payments in any manner that you want.
Can you get the Varo Advance back?
Varo Advance allows you to access the cash from your Varo Bank Account. Moreover, the advance must be paid back within 30 days of the receipt date.
Which cash advance app works Varo?
There are many cash advance apps that work with Varo, some of them include: Dave, Albert, Empower, MoneyLion, Cleo, Chime and many others.
How can I use Varo overdraft feature?
To use the Varo Overdraft, go to Varo App > Below Checking click on Varo Bank Account > No Fee Overdraft.
How long does it take to borrow money of $50 from Varo?
It can take up to 4 to 7 business days for the transaction to get completed into your Varo Bank account.