In order to avoid declined transactions, a number of banks and financial institutions offer overdrafts for their users. They also offer overdraft protection fees for this service. An overdraft protection program pays for a transaction when the funds are insufficient. Under the terms of the contract, you have to pay an overdraft protection fee. Fees will vary based on whether the bank covers the transaction or transfers funds from an allied account.
Currently, Varo card does not offer any overdraft for its customers. Instead, Varo offers another feature called Varo advance. Let’s examine what Varo Advance is and how it works.
What is Varo Advance
Varo Advance lets you access extra cash without overdrawing your account when you need it. Varo Advance is a healthier option for your bank account compared to overdrawing. You don’t need to bring your account balance to zero. Keeping control of your balance is more manageable with Varo advance, so you can concentrate on what matters most in life.
Varo Advance is a way to cover unexpected expenses without incurring high-interest rates or credit checks. Depending on your eligibility and qualifications, you can borrow up to $100 without bringing your balance below $0.
Varo Advance charges no overdraft, unexpected, or unfair late fees. To get another advance, you only have to repay the Advance plus the advance fees within 30 days. Since there is no credit check, getting an Advance will not affect your credit.
Why should you use Varo Advance?
A paycheck doesn’t always last as long as it should. You may find yourself in a situation where you need to buy goods for yourself or your family members immediately, but you lack the funds. This situation may force you to take out a loan with a high-interest rate which may contradict your financial situation. With Varo, you find a dependable solution that helps you through tough times yet allows you to remain relaxed while repaying your loan.
Most people take out an overdraft or use a credit card to spend the extra cash they need. Both of those come with charges and interest. Additionally, many people have a hard time getting out of debt.
Varo Advance gives you $100 for a flat fee, and you pay it off once you’re paid. You don’t even need to pay the charge if you borrow money within the limit. It’s an easy way to get by when your finances are tight. It also won’t leave you deep in debt.
How Do I qualify for Varo Advance?
Varo Advances are subject to certain requirements. Those are
- You must activate your Varo bank debit card.
- Your Varo account should be active means not closed or suspended
- Your Varo Bank account should be at least 30 days old.
- In order to qualify, you must have had a direct deposit of at least $1000 to your Varo account, savings account, or both combined, within the last 31 calendar days.
- For you to continue to receive Advance, any previous late or missed Varo advance payments are not allowed.
As soon as you meet the requirements, you can get an advance the next day. Varo will see if you’re eligible for a Varo Advance every day. You’ll get an Advance the next day as soon as you meet the requirements. And Varo will check your eligibility monthly so you can get higher limits.
You’ll find out in the app if you’re qualified or what you need to do to qualify.
Your direct deposit can qualify as payroll, pension, or government benefit payments your employer makes. Your deposit name must match the name on your Varo Bank account and Varo Savings Account.
Fees for the Varo advance
If you ask for $20 or below as an Advance, there is no fee from Varo advance. But Varo charges fees according to the amount greater than $20 and onwards. Don’t worry; the fees are so minimal that you wouldn’t bother them. Suppose you need $50; the fee would be $3 then. For $75, the charge is $4; for $100, the charge is $5.
RELATED : 8 Best Cash Advance Apps That Work With Varo
Varo Advance Vs Overdraft Protection
If you are still confused then here is the comparison between Varo Advance and Overdraft protection.
| Charges | Varo Advance | Overdraft Protection |
| Do I have to go below $0? | Nope | Overdraft protection requires a negative balance. |
| Will I pay Overdraft fees? | Nope | Overdraft protection usually charges a transaction fee for covering a transaction. |
| Will I be charged interest? | Nope | If you have a credit card or line of credit that offers overdraft protection, you have to pay interest on the amount you borrowed. |
What can I do about repayment?
Varo Advances let you choose a repayment date when they’ll take money out of your account automatically. You can also make a payment manually by transferring money from your Varo checking or savings account as often as you like.
In case you need more than $100, or you don’t want to open an account with Varo, consider another short-term loan.
What happens if I forget about autopay?
You can set your auto-repayment date anywhere between 15 and 30 days after you get your advance. Even if you miss your date, you still have 30 days more to pay it back.
Is it possible to get more than one Advance at a time?
You’ll be able to get a new advance once your previous advance is fully repaid, as long as you keep qualifying for the program.
Be sure you have enough money in your next direct deposit to pay Varo back on time. Varo is always ready to keep giving you Advances if your payment system is updated.