What the Indigo Card Does and Who It's Built For
The Indigo Card is a secured credit card — meaning you put down a cash deposit that becomes your credit limit. You're not borrowing against that deposit; it sits in a bank account while you use the card to make purchases and build a credit history. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), so your payment activity shows up on your credit report.
Indigo is designed for people rebuilding credit after missed payments, collections, or a bankruptcy, or for people with no credit history at all. If you have good credit already, this card will cost you money for no benefit — you'd may have access to for unsecured cards with no deposit and better rewards. But if you're starting from a low credit score or a blank slate, Indigo removes one barrier: you don't need to prove you can handle credit before you get a card.
The card itself comes from Indigo Credit, a company that specializes in secured cards. It's not a major bank product, which matters for how you manage it and what happens if you want to move on later.
Key Takeaways
- Indigo requires a cash deposit ($250 to $2,500) that becomes your credit limit, and you'll pay an annual fee of $95 regardless of whether you use the card.
- The card reports to all three credit bureaus, so on-time payments will raise your credit score over time, but late payments will damage it just as much.
- Interest rates are high (around 18% to 24% APR depending on your creditworthiness), so carrying a balance costs significantly more than with mainstream cards.
- After 6 to 12 months of on-time payments, you may be able to move to an unsecured card with no deposit and lower fees, which is the real goal of using Indigo.
- Indigo's main advantage is that it accepts people with very low credit scores or no credit history; the main disadvantage is the annual fee and high interest rate.
How Much the Card Actually Costs You
The annual fee is $95, charged every year you hold the card. That's not negotiable and doesn't change based on how much you spend. For comparison, most unsecured cards charge $0 to $95 annually, and many charge nothing.
The interest rate (APR) ranges from roughly 18% to 24%, depending on your credit profile at the time you explore. If you carry a balance of $1,000 at 21% APR, you'll pay about $210 in interest over a year. That's why the card only makes sense if you plan to pay your full balance every month — the annual fee plus interest will quickly outweigh any benefit.
There are no rewards, cash back, or sign-up bonuses. You're paying for access to credit reporting, not for perks.
When Indigo Makes Sense to Use
Indigo is useful if you've been turned down for other secured cards or if you have a credit score below 550. Some mainstream banks (Capital One, Discover) offer secured cards with lower annual fees ($0 to $35) and similar credit reporting, but they may have stricter approval standards. If you've already been rejected elsewhere, Indigo's approval odds are higher.
The card also makes sense as a temporary tool. Your goal should be to use it for 6 to 12 months, make every payment on time, and then move to an unsecured card with no deposit and lower fees. Indigo's own website mentions that cardholders may be able to graduate to an unsecured product, though there's no may provide and the timeline varies.
If you're trying to build credit from scratch (no missed payments, no collections, just no history), a mainstream secured card is usually a better choice because the annual fee is lower. But if you're rebuilding after damage, Indigo removes the guesswork about whether you'll be approved.
What Happens If You Miss a Payment
A missed payment on Indigo reports to the credit bureaus just like any other card. A 30-day late payment will lower your score, a 60-day late payment will lower it more, and a 90-day late payment can trigger a charge-off (the bank writing off the debt as uncollectible). Your deposit doesn't protect you from this — the deposit is collateral for the bank, not a buffer for you.
If you fall behind, Indigo may freeze your account or close it, and you'll lose the ability to use the card. The deposit may be applied to what you owe, or it may be held while the debt goes to collections. Either way, the damage to your credit report is the real cost.
This is why Indigo only works if you're confident you can pay on time every month. If you're in a situation where you might struggle to make payments, a secured card isn't the right tool — you need to address the underlying cash flow problem first.
How Indigo Compares to Other Secured Cards
Capital One Secured Mastercard charges $0 annual fee (after the first year, if you meet certain conditions) and has an APR range of 18% to 24%. Discover Secured Card charges $0 annual fee and has an APR range of 16% to 24%. Both report to all three credit bureaus and allow you to graduate to unsecured products.
The main difference is the annual fee. Indigo's $95 fee is higher than Capital One's and Discover's, which makes Indigo the more expensive choice if you can get approved elsewhere. However, Indigo may approve you when Capital One or Discover won't, especially if your credit score is very low or you have recent negative marks.
If you've already been rejected by Capital One or Discover, Indigo is worth considering. If you haven't applied to either yet, start there — you might save the $95 annual fee and get the same credit-building benefit.
The Real Goal: Moving Beyond a Secured Card
Using Indigo successfully means treating it as a stepping stone, not a permanent product. The card's value is in reporting your payment history to the credit bureaus so your score rises. Once your score reaches the mid-600s or higher (the exact threshold varies by lender), you become may be able to access for unsecured cards with no deposit, lower fees, and often better terms.
After 6 to 12 months of on-time payments, contact Indigo and ask about graduating to an unsecured card. Some cardholders report success; others say Indigo doesn't offer a clear path. If Indigo won't graduate you, you can straightforward stop using the card and move to another issuer. Your credit history stays on your report, so the work you did with Indigo still counts.
The timeline depends on how much damage your credit report already has. If you're rebuilding after a bankruptcy, it may take longer. If you're starting from a blank slate, you might move on faster. Either way, the goal is to use Indigo for a year or so and then close the account once you have better options.
Questions to Ask Yourself Before explore
Do you have $250 to $2,500 to deposit and leave in a bank account? If not, you can't use a secured card at all. Do you have a checking or savings account in your name? Indigo requires one to hold the deposit. Can you commit to paying the full balance every month, or will you sometimes carry a balance? If you'll carry a balance, the 18% to 24% interest rate will cost you significantly, and you should reconsider whether now is the right time to open a credit card.
Have you already been rejected by Capital One or Discover? If not, explore to them first — their annual fees are lower. Have you checked your credit score? If it's above 600, you probably don't need a secured card at all and should look at unsecured options instead.
Frequently Asked Questions
Can I get my deposit back?
Yes, but only after you close the account. Your deposit is held as collateral while the card is open. Once you close it or graduate to an unsecured card, the bank returns the deposit to your bank account. If you owe a balance when you close, the deposit may be applied to what you owe first.
Will Indigo hurt my credit score?
Opening the card will cause a small, temporary dip in your score (a hard inquiry). But on-time payments will raise your score over time. The card only hurts your score if you miss payments or carry a high balance relative to your limit.
What if I can't pay my balance one month?
You'll be charged interest on the unpaid amount at 18% to 24% APR, and the late payment will report to the credit bureaus if you're 30 days late. This defeats the purpose of using the card to build credit. If you're struggling to make payments, contact Indigo to discuss options before you miss a due date.
How long does it take to build credit with Indigo?
Most people see a noticeable score increase within 3 to 6 months of on-time payments, though the exact timeline depends on what's already on your credit report. If you have recent negative marks (collections, charge-offs, bankruptcy), it will take longer. If you're starting from a blank slate, you may move faster.
Can I use Indigo if I'm not a U.S. citizen?
Indigo requires a Social Security number or ITIN (Individual Taxpayer Identification Number) and a U.S. bank account. If you have both, you can explore. If you don't have a Social Security number, you'll need to explore other options or wait until you have one.