What the Indigo Credit Card Is
The Indigo Credit Card is a secured credit card issued by Capital One, designed for people rebuilding credit or starting from scratch. You put down a cash deposit, which becomes your credit limit — typically between $250 and $2,500. You use the card like any other credit card, and Capital One reports your payment history to the three major credit bureaus (Equifax, Experian, and TransUnion), which helps build your credit score over time.
The card charges an annual fee and a higher interest rate than cards for people with established credit. There is no rewards program. The main value is that Capital One will consider your account for graduation to an unsecured card after you have demonstrated responsible use — usually 6 to 18 months of on-time payments.
Key Takeaways
- Your cash deposit becomes your credit limit, so you control how much you put at risk.
- Capital One reports to all three credit bureaus, which means your payment history can improve your credit score if you pay on time.
- The annual fee and interest rate are higher than standard cards, so carrying a balance costs more than it would elsewhere.
- After consistent on-time payments, you may be moved to an unsecured card and your deposit returned.
- You can increase your credit limit by adding more money to your deposit or by being upgraded after demonstrating responsible use.
How Much It Costs
The Indigo Card charges an annual fee of $95. The interest rate (APR) ranges from 19.99% to 24.99%, depending on your creditworthiness at the time of approval. There are no late fees, foreign transaction fees, or penalty APRs — Capital One does not raise your rate if you miss a payment, though missing a payment will still hurt your credit score and may trigger collection activity.
If you carry a balance month to month, the interest charges add up quickly. For example, a $500 balance at 24.99% APR costs roughly $10.42 per month in interest alone. Paying the full statement balance each month avoids interest charges entirely and is the fastest way to improve your credit score with this card.
What You Need to Open an Account
You will need to be at least 18 years old, have a valid Social Security number, and be a U.S. resident. Capital One will perform a hard credit inquiry, which temporarily lowers your credit score by a few points. You do not need perfect credit — the card is designed for people with poor or no credit history.
You will also need a deposit amount between $250 and $2,500 to fund the card. This deposit is held in a separate account and earns a small amount of interest (currently around 0.01% APY, though this varies). The deposit is not a fee — it is your own money, held as collateral. If you close the account in good standing, you get the deposit back.
how the process works
You can explore online at Capital One's website or by phone. The online process takes about 10 minutes and asks for your name, address, date of birth, income, and employment information. Capital One will pull your credit report and give you a decision within minutes in most cases.
If you are approved, you will be asked to fund your deposit. You can do this by bank transfer, debit card, or check. Once the deposit clears — usually within 1 to 3 business days — your card will be mailed to you, typically arriving within 7 to 10 business days. You can begin using the card as soon as it arrives.
Building Credit With This Card
The Indigo Card reports to all three credit bureaus every month, so your payment history becomes part of your credit file. Making on-time payments is the single most important factor in improving your credit score — it accounts for 35% of most scoring models. Missing even one payment can set back your progress significantly.
Keeping your balance low relative to your credit limit also helps. Credit utilization — the percentage of your available credit you are using — makes up about 30% of your score. If your limit is $500, using $100 or less is better than using $400. The lowest utilization is zero: paying off the full balance each month and carrying no balance forward.
After 6 to 18 months of on-time payments, Capital One may upgrade you to an unsecured card without a deposit requirement. When this happens, your deposit is returned to you. You can also request a credit limit increase by adding more money to your deposit, or Capital One may offer one automatically if your credit improves.
When the Indigo Card Makes Sense
This card is most useful if you have no credit history, a very low credit score, or recent negative marks like late payments or collections. It is also a reasonable choice if you have been denied for other cards and need a may provide path to approval.
The card is less useful if you already have access to unsecured cards with lower fees and rates, or if you cannot commit to paying the full balance each month. The $95 annual fee and high interest rate mean you are paying for the opportunity to rebuild — which is fair, but only if you actually use it to build credit by paying on time.
Alternatives to Consider
Other secured cards exist, including the Discover Secured Card (no annual fee, lower APR range of 16.99% to 24.99%) and the OpenSky Secured Visa Card (no credit check required, but higher annual fee of $35 and APR of 20.99%). Some credit unions offer secured cards to members with lower fees and rates.
If you have a thin credit file but not actively bad credit, you might also explore unsecured cards designed for fair credit, such as the Capital One Platinum or the Discover it Secured card's unsecured cousin, the Discover it for Students. These do not require a deposit and may have lower fees, though approval is less certain.
Frequently Asked Questions
Can I get my deposit back before closing the account?
No. Your deposit must remain in the account as long as the card is open. If you want access to that money, you will need to close the card. When you do, Capital One will return the deposit to the bank account you used to fund it, usually within 5 to 7 business days after the account closes.
What happens if I miss a payment?
A missed payment will be reported to the credit bureaus and will damage your credit score. Capital One does not charge a late fee, but they may close your account or reduce your credit limit. If the account goes to collections, it will remain on your credit report for seven years from the date of the missed payment.
Can I increase my credit limit without adding more money?
Yes. After demonstrating responsible use — typically 6 to 18 months of on-time payments — Capital One may increase your limit automatically or allow you to request an increase. You can also increase your limit by depositing more money into the account, which raises your credit limit by the amount deposited.
Does the Indigo Card have a grace period for interest?
Yes. If you pay your full statement balance by the due date each month, you will not be charged interest. Interest only applies to balances you carry from one month to the next. This is standard for credit cards and makes paying in full each month the most cost-effective way to use the card.
How long does it take to graduate to an unsecured card?
There is no set timeline. Capital One reviews accounts periodically and may offer an upgrade after 6 months, but it can take longer depending on your credit history and payment performance. You can also contact Capital One to ask about your account's status, though they will not upgrade you before they believe you are ready.