Is Varo Advance Legit? Yes, But It Has Limitations
- Min. Amount
- $20
- Max. Amount
- $500
- Turnaround time
- Instant but charges a fee
Our verdict
Get up to a $500 cash advance with no interest — and a fee as low as $1.60.
Varo Advance is a short-term solution to stretch your paycheck. And with a minimum fee of $1.60, it can be an inexpensive alternative to payday loans.
But when you first sign up, you can only get an advance of $20 at a time until you build your repayment history — which you may not have time for if you need the cash immediately. The maximum advance amount is $250 to $500, depending on your eligibility over time.
If you don't have a Varo bank account, or you need to borrow more right away, check out other short-term loan options.
Details
Product details
| Product Name | Varo Cash Advance |
| Min. Amount | $20 |
| Max. Amount | $500 |
| Loan Term | 15 to 30 days |
| Loan Security | Unsecured |
| Turnaround Time | Instant but charges a fee |
| Requirements | Active Varo bank account in positive standing; an available balance of $0 or more; at least $800 in total qualifying direct deposits within the last 60 days. |
Varo Advance rates, fees and terms
There is no application fee, late payment penalty, interest rate or subscription charge to use Varo Advance. You’ll pay a one-time fee for the service, which varies depending on how much cash you need.
| Amount | Fee |
|---|---|
| $20 | $1.60 |
| $50 | $4 |
| $75 | $6 |
| $100 | $8 |
| $150 | $12 |
| $200 | $16 |
| $250 | $20 |
| $300 | $24 |
| $400 | $32 |
| $500 | $40 |
You can make as many payments as you want within 30 days, or Varo will automatically deduct the full amount, including the fee, on your automatic repayment date. If your account doesn’t have enough funds, Varo takes the balance you owe from future incoming deposits until it’s paid in full.
What is Varo, and is it legit?
Varo is a mobile banking startup that was chartered as a national bank in July 2020. Varo Advance is a legit short-term bridge that allows Varo banking customers to borrow up to $500 for 30 days. It has loaned over $550 million to its customers.
Varo Bank is insured by the Federal Deposit Insurance Corporation (FDIC), and your accounts are insured for $250,000 if Varo goes under. While it doesn’t sell your data, Varo may share your information with other financial companies and their affiliates.
Compare alternatives to Varo
Narrow down top cash advance apps by loan amount, turnaround time and more to find the best for your budget and financial goals. Select Compare for up to four products to see their benefits side by side.
What is the Finder Score?
The Finder Score crunches 3+ types of short-term loans across 65+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best short-term loans for all credit types, you can see how each short-term loan stacks up against other short-term loans with the same borrower type, rate type and repayment type.
Varo Advance reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A- |
| BBB customer reviews | 3 out of 5 stars, based on 208 customer reviews |
| BBB customer complaints | 2,197 customer complaints |
| Trustpilot Score | 1.9 out of 5 stars, based on 2,333 customer reviews |
| Customer reviews verified as of | 11 August 2024 |
Customers praise Varo Advance for getting them funds when they need them while avoiding expensive overdraft fees. For Varo Bank, many cite the high savings APY, mobile check cashing and high-paying referral program as why they love this banking platform.
Most complaints center around poor customer service. Many users also complain about sudden bank account closures and difficulty accessing funds after.
It’s important to note that most customer reviews are for Varo Bank as a whole and not specifically its cash advance feature.
Am I eligible?
To get a Varo Advance, you’ll need:
- An active Varo bank account in positive standing.
- An available balance of $0 or more.
- At least $800 in total qualifying direct deposits within two calendar months
As long as you meet the eligibility requirements, you can request a $20 advance at any time. For advances over $20, Varo will review your repayment history on previous advances and account profile to approve higher advances. Most Varo customers start with the possibility of borrowing up to $250 and may work their way up to $500 over time.
Late or missed payments can disqualify you from future cash advances.
What states is Varo Advance available in?
Varo serves all 50 states. You can request an advance regardless of where you live in the US.
How do I apply
Varo Advance is built into your Varo bank account. Once you qualify, you can request an advance in your Varo app and get your funds immediately.
To apply, follow these steps.
- Choose the amount. Open your Varo app and select your desired advance amount up to your current limit.
- Receive your funds. Varo sends the funds directly to your Varo bank account within minutes.
- Repay the advance. Make payments of any size at any time up to 30 days after receiving your advance.
Varo verifies your eligibility for the $20 advance minimum every business day and higher advance amounts before the start of each month.
What are my repayment options?
When you get a Varo Advance, you’ll select a repayment date when Varo will automatically deduct what you owe from your bank account. You can also manually make a payment by initiating a transfer from your Varo checking or savings account as often as you like until your automatic repayment date.
If you need to borrow more than $500 or don’t qualify for Varo’s full amount yet, consider a different short-term loan or other cash advance apps that work with Varo.
Frequently asked questions
Our answers to common questions you may have about Varo Advance.
How often can I get a Varo Advance?
You can have only one advance at a time and only one per day, even if you’ve paid it back already.
What happens if I miss my autopay date?
You can set your auto-repayment date anywhere between 15 to 30 days from when you get your advance. If you miss your date, you still have until your 30-day due date to pay it back.
Your reviews
Kimberly Finder
Writer
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