Does Varo Use ChexSystems?

Past overdrafts or unpaid bank fees can make a traditional checking account harder to open. Even after you pay what you owe, accurate negative information may remain in your banking history for several years.

Varo Bank offers a different option for people who’ve faced account denials. Its account has no monthly fee or minimum balance, but its mobile-only model won’t suit everyone.

Varo Doesn’t Use ChexSystems

Varo doesn’t use ChexSystems when it reviews applications for a Varo Bank Account. The bank confirms that past ChexSystems problems won’t be part of its approval decision.

This means an old overdraft, unpaid fee, or account closure in your ChexSystems consumer report won’t automatically prevent you from opening an account.

Varo also doesn’t check your traditional credit history for its Bank Account. Applying won’t affect your credit score.

Approval still isn’t guaranteed. Varo must confirm your identity and may deny an application when the information provided can’t be verified or raises fraud concerns.

Who Can Open a Varo Bank Account?

Varo is open to applicants throughout the United States and Washington, D.C. You don’t need to live near a branch because Varo operates entirely online.

To apply, you must:

• Meet the residency requirement: You must be a U.S. citizen or permanent resident with a physical address in the United States or Washington, D.C.
• Meet the minimum age requirement: You must be at least 18.
• Provide identification: Varo may request a driver’s license, state ID, passport, or military ID.
• Provide a Social Security number: Varo uses it to confirm your identity.
• Open an individual account: Varo doesn’t currently support joint or business accounts.

Each customer can have only one Varo Bank Account. You may also qualify for Varo’s savings, credit-building, or cash advance products after opening the main account.

The Varo Bank Account Has No Monthly Fee

The Varo Bank Account has no monthly maintenance fee, minimum balance requirement, or overdraft fee. Varo also doesn’t charge a fee for purchases made with its debit card.

The account includes:

• Early direct deposit: Eligible paychecks and government payments may arrive up to two days before the scheduled payment date.
• Debit card access: You’ll receive a Varo Visa debit card for purchases and ATM withdrawals.
• Virtual debit card: You may receive virtual card access before your physical card arrives.
• Mobile check deposit: Eligible customers can submit checks through the Varo app.
• Online transfers: You can connect outside bank accounts and move money through the app.
• Bill payments: Varo supports digital bill payments from the Bank Account.

Early direct deposit depends on when the payer sends the deposit file. Varo can’t guarantee that every payment will arrive two days early.

Varo Doesn’t Charge Overdraft Fees

Varo doesn’t charge traditional overdraft fees. Transactions may be declined when your available balance isn’t high enough to cover them.

This can help if overdrafts contributed to your previous ChexSystems problems. A declined debit card purchase may be inconvenient, but it won’t create a $30 or $35 overdraft fee.

Some customers may qualify for Varo Advance, which lets eligible account holders borrow a small amount for a fee. Varo Advance isn’t overdraft protection, and eligibility depends on account activity and other requirements. Fees vary by the amount borrowed.

Don’t treat Varo Advance as free money. Review the fee and repayment date before accepting an advance.

ATM Withdrawals Can Be Free or Costly

Varo customers can withdraw cash without a Varo fee at U.S.-based Allpoint ATMs.

Varo charges $3.50 for withdrawals at out-of-network and international ATMs. The ATM owner may charge another fee, which can make an outside withdrawal expensive.

Check the ATM locator in the Varo app before withdrawing cash. Allpoint ATMs are commonly found inside pharmacies, convenience stores, and major retailers.

Varo doesn’t operate physical branches. That may be a drawback if you often need cashier’s checks, in-person help, large cash withdrawals, or face-to-face service.

Is Varo a Second Chance Bank Account?

Varo can serve the same purpose as second chance checking because it doesn’t use ChexSystems. However, it provides a regular bank account rather than a temporary account with extra monthly charges or limited features.

Varo Bank is a federally chartered bank, not a financial technology company that depends on a partner bank to hold deposits. Eligible deposits receive Federal Deposit Insurance Corporation coverage up to legal limits.

The account may make sense if you:

• Have negative ChexSystems information: Varo won’t review it during the application.
• Want to avoid monthly charges: The Bank Account has no monthly maintenance fee.
• Have struggled with overdrafts: Varo doesn’t charge overdraft fees.
• Receive direct deposit: Eligible payments may become accessible early.
• Prefer mobile banking: The account is managed through Varo’s app.

It may not fit someone who needs branches, joint checking, business banking, or regular in-person cash services.

Check Your ChexSystems Consumer Report Anyway

Varo doesn’t use ChexSystems, but you should still review your ChexSystems consumer report.

Another bank or credit union may check it in the future. ChexSystems collects information about deposit account applications, openings, and closures, including reasons an account was closed.

Look for accounts you don’t recognize, incorrect balances, wrong closure reasons, and paid debts that still appear as unpaid.

Accurate negative records can generally remain for five years. Paying a balance won’t usually remove it early, but the record should show that the debt was paid.

Dispute information that’s inaccurate or incomplete. Fixing the record now can give you more banking choices later.

What Could Cause Varo to Deny Your Application?

Since Varo doesn’t use ChexSystems, a denial will usually have another cause.

Possible issues include:

• Identity verification problems: Varo may be unable to confirm your personal information.
• Incorrect application details: A typo or outdated address may stop the review.
• Missing documents: Varo may request a valid identification document or a selfie.
• Eligibility problems: Applicants must meet Varo’s residency and citizenship requirements.
• Existing account: Varo allows only one Bank Account per customer.
• Fraud concerns: Conflicting information may trigger additional screening.

Double-check every detail before submitting the application. Use the same legal name and address shown on your identification documents.

Other Banks That Don’t Use ChexSystems

If you want to explore additional options beyond Varo, the following banks also skip ChexSystems when approving new accounts:

Learn More

• Banks That Don’t Use ChexSystems – Take the first step to rebuilding your banking history with our list of banks that do not use ChexSystems for account approval.
• Credit Unions That Don’t Use ChexSystems – Find a credit union that will work with you, not against you. Learn about the credit unions that don’t use ChexSystems.
• Am I in ChexSystems? – Unsure if you’re in ChexSystems? Learn how to find out and take control of your financial status.
• How to Get Out of ChexSystems – Learn how to get out of ChexSystems in four simple steps.
• Second Chance Checking Accounts – Take control of your financial future with our list of over 450 banks that offer second chance checking accounts.