With prepaid cards, you load cash on the card to use the card for purchases. Prepaid card use is not reported to credit bureaus, so they can’t be used to build credit.
Varo Believe offers a secured credit card where your credit (spending) limit is linked to a deposit you make into a Varo Believe Secured Account which is used as security for your monthly Varo Believe Card payment. Each time you make a purchase or cash advance on your card, we’ll secure the transaction amount in your Varo Believe Secured Account. Each month we’ll send you a statement and then you can use the secured funds in the Varo Believe Secured Account to pay your monthly statement balance.
On-time payment history with your Varo Believe Account may positively impact your credit history. Varo Believe is designed to help you build your credit; however, a variety of factors impact your credit including payment history, utilization, derogatory marks, account age, total number of accounts, and inquiries, and not all factors are equally weighted. Building your credit may take time and is a process, but Varo Believe may be able to help.
Continued use of the Varo Believe Card is contingent upon timely payment.