- Annual percentage rate (APR): 24.9% to 29.9%.
- Purchase intro APR: None.
- Rewards: None.
- Annual fee: $0-$99
- Late fee: $0 – $40.
- Credit score: Poor and above (300+).
- Apply Today.
Table of Contents
The Indigo MasterCard offers specific benefits that may appeal to people with bad credit or limited credit history.
- No security deposit: Though the Indigo MasterCard has an annual fee, it does not require a security deposit. Most credit card options available to people with bad credit or no credit history are secured credit cards. You can only use such cards if you make a security deposit. The Indigo MasterCard allows users to build a positive credit history without a deposit. With the Indigo MasterCard, you do not have to tie up as much money as you would with a secured credit card.
- Enjoy quick credit score increases with proper usage: Indigo reports regularly to the three major credit bureaus: TransUnion, Experian, and Equifax. Users who make regular purchases using their Indigo MasterCard and avoid late payments or excessive interest charges should see a quick increase in their credit score. As the score increases, users can apply for cards with more perks and lower interest rates.
- Easy approval process: Applicants go through a pre-approval process for the Indigo MasterCard. Also, since this card is for people with bad credit or limited credit history, a poor credit score is not disqualifying. Applicants need to be 18 years of age or older, have a physical address, a Social Security number, and provide evidence of income and current debts.
- Access to MasterCard account tools: Indigo cardholders have access to MasterCard’s ID theft protection service and protection against unauthorized charges. They also get online account management tools from Indigo.
Though the Indigo MasterCard has benefits that are attractive to some users, it also has some drawbacks that may make it a poor option for others.
- A high annual fee: The Indigo Card does not require a security deposit, but it does have a very high annual fee (currently $125) in most cases. Applicants with good credit may avoid the annual fee, but they may also qualify for other credit cards with lower interest rates. When you make a security deposit with a secured credit card, you will get the money back if you do not default on your payments. With the annual fee, however, you have no chance of getting the money returned to you; $125 is very expensive for a card with no rewards or perks.
- Low credit limit: The Indigo Card has a low credit limit. This limit is not a problem for those who plan to make small purchases and immediately pay them off. However, those who want to make larger purchases may hurt their credit score because they will increase their credit utilization ratio, which is the amount borrowed compared to the overall credit limit.
- High interest rates: The interest rate, currently at 24.9% to 29.9% for purchases, is very high compared to other credit cards. The interest rate is not a problem if you plan to make small purchases and pay them off quickly to build a positive credit history. However, if you carry a balance from month to month, the interest rate can quickly increase your debt and have an unwanted effect on your credit score.
What Can You Expect From the Indigo Card?
The Indigo Card offers options for applications, account management, and customer service.
The Application Process
Applicants can get pre-approved for the Indigo Card. Though pre-approval does not guarantee that someone will get accepted, it means that approval is likely. Despite being a card for people with poor credit, applicants still need to go through a standard application process and provide identification and income information.
One of the perks of the Indigo Card is that new cardholders can choose the design they want to appear on their card.
Indigo Card customers can manage their account online through the card’s online account management system. They’re able to set up payments and reminders, check their balance, and see payment information for past transactions. There is no mobile app, though the application page and account website are both mobile-friendly.
Who Should Get the Indigo Card?
The Indigo MasterCard is for people who want to quickly improve their credit score, but who cannot qualify for another credit card. Cardholders may have to pay an annual fee based on their creditworthiness. However, people with good credit will likely be eligible for a better credit card with a lower interest rate.
The Indigo Card, therefore, is for people who want to increase their credit score but do not want to tie up too much money with a secured credit card. To avoid the high interest charges, users need to pay off their entire balance every month. People who are able to engage in this methodical use of the Indigo Card can benefit from the frequent reports to credit bureaus and quickly increase their credit score.
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