US-based Varo Bank will increase to $500 effective 27 November, its Varo Advance cash limit for qualifying customers to help mitigate holiday period financial pressures. The increase doubles the previous maximum limit of $250. And it is five times increase from the $100 offered at the product’s launch in late 2020. The bank says that Varo Advance is one of the lowest-cost short-term loans available among finance apps.
Varo says that the Advance facility seamlessly integrates into the its mobile app. It only takes a few taps to apply, with no impact on credit score. Customers receive the money in their bank account within seconds. They can make use of a flexible 30-day repayment period. The result is a more customer-friendly alternative than predatory payday lenders or other money apps. Such products require repayment on the next payday. There are no hidden charges, fees for instant access, or requests for tips.
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“We have increased the maximum limit for Varo Advance because our customers living paycheck-to-paycheck have asked for a way to pay for increased living costs without going into costly debt,” said Colin Walsh, the founder and CEO of Varo Bank. “Varo Advance allows customers to cover their short-term cash flow gaps at a low cost. With flexibility to pay it back over 30 days, we hope it will be particularly helpful at holiday time.”
Varo to Anyone
Varo Advance is the latest example of how Varo Bank has quickly responded to customers’ financial challenges in 2023. For example, to solve the issue of unprotected P2P wallets without deposit insurance, it introduced Varo to Anyone. This provides Varo customers with fast, free, and secure P2P payments to anybody with a US debit card. Varo also has one of the nation’s highest savings APY rates in the country to help build wealth once a customer achieves positive monthly cash flow.
Varo released its Wealth Watch Insights survey focusing on Americans living paycheck-to-paycheck earlier this month.
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By GlobalData
