Varo users are wondering how to borrow money from Varo.
The process is simple as long as you qualify for it.
Varo features a loan option, "Varo Advance" which lets users borrow money from the platform by getting a cash advance of up to $100.
This is same to Chime SpotMe that lets users 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. Cash advance products come in a range of sizes.
Varo cash advance is a simple way to get money for emergencies.
However, many users prefer using cash advance apps that work with Varo because the loans they offer can range up to $200 or even $500 for apps like Branch.
Getting a Varo cash advance is pretty easy as long as you are eligible for the cash advance.
Knowing how to qualify for Varo cash advance is important to borrow money from the platform.
That said, this article focuses on showing you how to borrow money from Varo mentioning the eligibility requirements for the cash advance.
Table of Contents
What is Varo Cash Advance?
While you can get a short-term loan from your bank, Varo Advance is a better option if you need money quickly.
As per Colin 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."
Once you qualify for Varo Advance, you can request a cash advance of up to $100 immediately in the Varo Bank app.
Varo Advance provides a cash advance to your bank account using the Varo Bank app provided you meet the requirements.
Varo Advance provides just one cost per Advance and no APR, whereas other cash advance solutions can have large fees and APRs.
How Varo Advance Works
Varo Advance allows you access to up to $100 cash via the Varo Bank app once you qualify.
It has a single flat cost based on the Advance amount, and you can make as many payments as you want, whenever you want, in whatever amount.
All you have to do now is pay it back in full within 30 days.
Varo Advance is a low-interest credit line.
An "advance" is a recurring loan that is deposited into your Varo Bank Account and must be returned.
There are some requirements.
To continue receiving advances, you must have made at least $1,000 in direct deposits into your Varo Bank Account or Varo Savings Account in the previous 31 days, and neither account can be overdrawn, stopped, or cancelled.
Direct deposits must be an electronic deposit from your employer or the government of your paycheck, pension, or government benefits (such as Social Security or Unemployment Insurance).
Direct deposits are not considered person-to-person payments (such as Venmo).
A direct deposit is when funds are deposited using a Varo Money routing number.
Your qualifications will be assessed daily for $20 Advances.
Fees apply to advances exceeding $20, and your payment history and qualifications will be evaluated periodically to determine if your credit limit should be increased.
Payments must be made on schedule to maintain eligibility for Advances.
Varo Advance Regular Fees
| Advance | Fee |
|---|---|
| $20 | $0 |
| $50 | $3 |
| $75 | $4 |
| $100 | $5 |
Eligibility Requirements To Borrow Money From Varo
- Your Varo Bank Account must be at least 30 days old and active.
- You’ll need to have at least $1,000 in Qualifying Direct Deposits to either your Bank Account, Savings Account, or both combined within the last 31 days.
- You must have activated a Varo Bank Debit Card linked to your Varo Bank Account.
- Additional qualifications apply.
How to Borrow Money From Varo
Varo Bank allows customers to borrow up to $100 through the Varo app. Users must only meet the Varo Advance eligibility requirements in order to borrow the amount they desire.
Below are the steps to borrow money from Varo.
- Open Varo app (make sure you're using 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 The Money You Borrow From Varo
To repay your loan accordingly, you'll need 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.
Keeping your account balance positive (which should be equal to or greater than the amount borrowed) is the best way to repay your Varo advance.
You don't have to be concerned if you receive direct deposits into your Varo account.
Varo will immediately deduct the sum without penalizing you.
What To Consider When Getting A Cash Advance
Fees
The majority of cash advances have a high cash advance cost as well as a higher annual percentage rate.
You'll find that many cash advance products charge interest of 5% of the advance amount.
When you borrow money from Varo Advance, you'll only have to pay a $5 charge and won't have to worry about interest.
All you have to do now is pay back your Advance within 30 days.
Speed
Obtaining a cash advance is typically a simple procedure.
Borrowing money from a bank or ATM in person could take longer than borrowing cash from Varo Advance.
Varo Advance allows you to acquire cash at the touch of a button without ever leaving your couch.
Credit
Taking out a cash advance has no effect on your credit score.
A cash advance on your credit card, on the other hand, will be added to your balance.
This could push your credit utilization rate above 30%, negatively impacting your credit score.
Your credit score will not be affected if you use Varo Advance.
Final Thoughts
Varo is a convenient option for someone with fairly direct finances.
Varo lets eligible users get a cash advance from the platform up to $100 which will be repaid on an agreed timeframe.
If this amount is small for you, then cash advance apps can be an option for you but beware of the fees they charge.
References:
https://www.varomoney.com/cash-advance/
https://www.varomoney.com/what-is-cash-advance/
Frequently Asked Question
Does a cash advance hurt my credit score?
Cash advances on credit cards increase your credit use, which might hurt your credit score. Varo Advance cash advances have no negative impact on your credit score.
Do you have to pay back a cash advance?
Yes, you will have to repay a cash advance. Varo Advance allows you to set your repayment date, which must be within 30 days of the date you received your Advance.
How much money can I get with Varo Advance?
Varo Advance allows you to borrow up to $100 if you qualify.
How quickly can I get a cash advance?
A cash advance can help you get cash quickly, but it's usually an expensive way to borrow money. Once you qualify for Varo Advance, you can borrow up to $100 with the touch of a button.