What the Indigo Card Actually Offers
The Indigo Card is a secured credit card — you put down a cash deposit, and that deposit becomes your credit limit. There is no annual fee, which sets it apart from many other secured cards. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), so responsible use builds your credit history.
The interest rate is high: the APR ranges from 18.99% to 24.99%, depending on your creditworthiness at the time you open the account. If you carry a balance month to month, you will pay significant interest. The card also charges a one-time processing fee of $99 when you open it — this comes out of your deposit, so if you deposit $500, your actual credit limit starts at $401.
Indigo does offer a path to graduation: after you demonstrate responsible use (typically 7 to 12 months of on-time payments), you can request to convert to an unsecured card. When that happens, your deposit is returned to you. This is the main reason people choose Indigo — not because the card itself is generous, but because it can lead somewhere.
Key Takeaways
- Indigo has no annual fee and reports to all three credit bureaus, making it useful for building credit history from scratch.
- The $99 processing fee reduces your starting credit limit, so a $500 deposit gives you only $401 to use.
- The APR of 18.99% to 24.99% is high, which means carrying a balance costs you significantly more than it would with a standard card.
- You can request conversion to an unsecured card after about 7 to 12 months of on-time payments, at which point your deposit returns to you.
- Indigo works best if you use it to build credit and pay the full balance each month, not as a card to carry debt on.
When Indigo Makes Sense for You
Indigo is worth considering if you have no credit history, a very low credit score, or a recent negative event (bankruptcy, collections, missed payments) that makes other cards unavailable to you. If you have been turned down for regular credit cards, a secured card is often the next step, and Indigo's lack of annual fee makes it cheaper than some alternatives.
The card also makes sense if you are disciplined about paying the full balance each month. When you do that, the high APR never touches you — you pay no interest at all. The card then becomes a tool to build credit history at no cost beyond the initial $99 processing fee.
Indigo is less useful if you already have fair or good credit. You will may have access to for cards with lower APRs, better rewards, and no processing fees. If you need to carry a balance for any reason, the 18.99% to 24.99% rate will cost you substantially more than a standard card would.
How the Deposit and Credit Limit Work
You choose your deposit amount when you open the account, and it can range from $250 to $5,000. Your credit limit equals your deposit minus the $99 processing fee. So if you deposit $500, your limit is $401. If you deposit $1,000, your limit is $901.
The deposit sits in a deposit account held by the bank. You do not earn interest on it. The money is yours — it is not a fee — but you cannot touch it while the card is active. Once you convert to an unsecured card or close the account, the deposit is returned to you.
After you have made on-time payments for several months, you can request a credit limit increase. Indigo may increase your limit without requiring an additional deposit, or it may ask you to deposit more money. There is no may provide of an increase, and the decision depends on your payment history and credit behavior.
Comparing Indigo to Other Secured Cards
Other secured cards in the market include the Capital One Secured Mastercard, the Discover Secured Card, and the OpenSky Secured Visa Card. Here is how they differ:
| Card | Annual Fee | Processing Fee | APR Range | Deposit Range |
|---|---|---|---|---|
| Indigo | $0 | $99 | 18.99%–24.99% | $250–$5,000 |
| Capital One Secured | $0 | $0 | 18.9%–24.9% | $200–$2,500 |
| Discover Secured | $0 | $0 | 18.99%–24.99% | $200–$2,500 |
| OpenSky Secured | $0 | $0 | 18.99%–24.99% | $200–$20,000 |
The main difference is the processing fee. Capital One, Discover, and OpenSky charge no processing fee, which means your full deposit becomes your credit limit. If you deposit $500 with Capital One, your limit is $500, not $401. Over time, this $99 difference is small, but it is real money out of your pocket.
All four cards report to the credit bureaus and offer a path to conversion. The APRs are nearly identical. If you are choosing between Indigo and another secured card, the processing fee is usually the deciding factor — unless Indigo is the only one that will approve you, in which case the fee is worth paying.
What Happens After You Build Credit
The goal of a secured card is to use it responsibly and then graduate to an unsecured card. With Indigo, you typically become may be able to access for conversion after 7 to 12 months of on-time payments. You do not have to wait for Indigo to offer — you can request conversion yourself once you meet the timeline.
When you convert, Indigo closes the secured account and opens a new unsecured account. Your deposit is returned to you, usually within 5 to 7 business days. The new unsecured card may have a different APR, different terms, and different benefits — Indigo will tell you what to expect before you convert.
Some people convert and then close the unsecured card after a few months. This is a mistake if you are still building credit. Closing the card removes it from your credit history and can lower your credit score. If you convert successfully, keep the card open and use it occasionally, even if you move to a better card for everyday spending. The longer history of on-time payments helps your score.
Fees and Costs You Should Know
Beyond the $99 processing fee and the high APR, Indigo charges late fees and over-limit fees like most credit cards. A late payment fee is typically $25 to $35 for the first late payment and $35 for subsequent ones. An over-limit fee applies if you spend more than your credit limit and Indigo allows it — this is usually $25 to $35 as well.
There is no foreign transaction fee, which is a small advantage if you travel internationally. There are no rewards — no cash back, no points, no miles. You get the card to build credit, not to earn benefits.
If you miss a payment by 30 days or more, Indigo will report it to the credit bureaus. This will damage your credit score significantly and defeat the purpose of using the card to build history. The card only works if you treat it as a tool for on-time payments, not as a source of borrowed money.
Red Flags and When to Look Elsewhere
Do not open an Indigo card if you cannot afford to pay the full balance each month. The 18.99% to 24.99% APR will trap you in debt faster than you expect. If you need to carry a balance, look for a personal loan or a 0% introductory APR card instead — both are cheaper than a secured card's interest rate.
Do not open an Indigo card if you have been denied by Capital One, Discover, or OpenSky. If multiple issuers have turned you down, a secured card may not be the right tool yet. You might need to work on your credit score first — pay down existing debt, dispute errors on your credit report, or wait for negative marks to age off your history.
Do not open an Indigo card if a company is charging you a fee to help you open it. Indigo is a real product from a real bank (Indigo Credit Card, issued by Coastal Community Bank). You can open it yourself for free on their website. If someone is charging you money to "help" you get a secured card, they are running a scam.
Frequently Asked Questions
Can I use Indigo if I have no credit history at all?
Yes. Indigo does not require an existing credit score or credit history. You will need a Social Security number, a valid ID, and proof of income or residence. The card is designed for people building credit from zero.
What happens if I miss a payment?
A single late payment (30 days or more) will be reported to the credit bureaus and will damage your credit score. Indigo may also charge a late fee of $25 to $35. If you miss multiple payments, Indigo can close your account and may pursue collection. The whole point of the card is to demonstrate on-time payment, so missing one defeats that purpose.
Can I get my deposit back before I convert to an unsecured card?
Not while the card is active. Your deposit is held as collateral for your credit limit. You can close the account and get your deposit back, but then you lose the card and the credit history you have built with it. It is better to wait for conversion.
How long does it take to convert to an unsecured card?
Indigo typically allows conversion after 7 to 12 months of on-time payments. The exact timeline depends on your payment history and credit behavior. You can request conversion yourself — you do not have to wait for Indigo to offer. The conversion process usually takes 5 to 10 business days.
Is Indigo better than a regular credit card?
No — a regular credit card is better if you can get one. Regular cards have lower APRs, no processing fees, and often offer rewards. Indigo is a tool for people who cannot get a regular card yet. Once you build credit with Indigo and convert to an unsecured card, you can then move to a regular card with better terms.