The Indigo credit card is a suitable choice for individuals with low credit scores or no credit history. However, before applying, it is essential to understand the associated fees, interest rates, and usage guidelines to avoid unwanted financial risks. This article will help you grasp the key information about the Indigo card.
1. Is Indigo a good credit card?
The suitability of the Indigo credit card depends on your financial needs and credit profile. This card is a popular option for individuals with poor credit history or those looking to rebuild their credit scores. While it can help you gradually improve your credit, it comes with an annual fee and higher interest rates compared to many other credit cards on the market. Therefore, before applying, you should carefully consider the costs associated with using this card to ensure it aligns with your financial situation.
2. Where can the Indigo credit card be used?
The Indigo credit card operates on the Mastercard network, meaning you can use it at any store, website, or transaction point that accepts Mastercard worldwide. Currently, Mastercard is accepted at over 37 million merchants globally. However, if you plan to shop at a specific retailer, it is advisable to check in advance to confirm that they accept Indigo card payments.
3. Who is the Indigo credit card for?
The Indigo Mastercard is designed for individuals who have difficulty accessing traditional credit cards, particularly:
- Individuals with low credit scores or no credit history: If you have never used a credit card or have a poor credit score, the Indigo card can serve as a stepping stone to gradually improving your credit profile.
- Those who do not want or cannot afford a secured credit card: Some credit cards require users to make a security deposit, but with the Indigo card, no upfront deposit is needed.
However, if you have a good credit score or are looking for a credit card with better perks, the Indigo card may not be the best choice. There are many credit cards on the market with higher credit limits, lower fees, and more attractive benefits.
If you frequently transact in cryptocurrency, you may want to consider crypto credit cards instead of the Indigo card. Some crypto credit cards offer cashback rewards of up to 8% on purchases, whereas the Indigo card does not provide such benefits. However, one limitation of crypto credit cards is that they do not support cash advances, unlike the Indigo or Milestone cards. Therefore, the right choice depends on how you intend to use your credit card.
To apply and be pre-approved for the Indigo Mastercard, you must meet the following requirements:
- Be at least 18 years old
- Have a valid Social Security number
- Have a physical residential address in the United States
- Have a U.S.-based IP address
- Provide information about your income and existing debts
- Verify your identity as required by the card issuer
4. How much does the Indigo credit card cost?
The Indigo credit card has an annual fee of $75 for the first year and $99 from the second year onward. Some customers may be eligible for a fee waiver. The applicable APR rates are:
- 29.9% for cash advances.
- 24.9% for purchases.
5. Which bank is associated with the Indigo credit card?
The Indigo credit card is issued by Celtic Bank, a financial institution based in Salt Lake City, USA, and insured by the FDIC. Celtic Bank offers various credit products, including the Indigo card, designed to assist individuals with low or no credit history.
Card services and account management for Indigo are handled by Concora Credit (formerly Genesis Financial Solutions), a company specializing in financial products aimed at helping consumers build their credit scores.
6. Who issues the Indigo credit card?
A key feature of the Indigo card is its FDIC insurance, ensuring the safety of deposited funds at Celtic Bank in the event of a banking failure. Under federal regulations, the FDIC insures customer deposits up to $250,000.
Additionally, Indigo cardholders can manage their accounts easily through a mobile app available for both Android and iOS. The app enables users to track transactions, check balances, make payments, and receive financial notifications conveniently.
Furthermore, Celtic Bank’s customer service is always available to assist with any card-related issues, ensuring users receive prompt and efficient support.
7. How to cancel the Indigo credit card?
You can cancel your Indigo Mastercard at any time, but there are important factors to consider before making a decision:
- If you cancel the card before making any transactions, including cash advances, you may be eligible for a refund of the annual fee.
- If the card has already been used, you must pay off the entire outstanding balance before requesting account closure.
Moreover, canceling a credit card can negatively impact your credit score. When a card is closed, your total available credit limit decreases, increasing your credit utilization ratio, which may temporarily lower your credit score. If you are in the process of building or improving your credit, carefully consider the potential consequences before deciding to close your account.
8. What are the advantages and disadvantages of the Indigo credit card?
Pros:
- No credit score required for application.
- No security deposit needed.
- Reports to all three major credit bureaus (Equifax, Experian, and TransUnion).
- Fraud protection ensures secure transactions.
- FDIC insurance safeguards account balances.
Cons:
- High interest rates (24.9% for purchases, 29.9% for cash advances).
- Expensive annual fee, up to $99.
- Low initial credit limit (only $300).
- Annual fee is deducted from the credit limit, reducing available funds.
The Indigo credit card can be a valuable tool for building credit, but it comes with relatively high fees and interest rates. Understanding the terms and conditions will help you maximize its benefits while avoiding financial pitfalls. Carefully evaluate whether this card aligns with your personal financial needs before applying.
