What the Indigo Credit Card Is
The Indigo Credit Card is a secured credit card issued by Capital One. You put down a cash deposit — typically between $250 and $2,500 — and that deposit becomes your credit limit. You then use the card like any other credit card, making purchases and paying a monthly bill. The deposit stays in a separate account and is not spent; Capital One holds it as security in case you don't pay your bill.
The card is designed for people rebuilding credit or starting from scratch. It reports your payment history to all three credit bureaus (Equifax, Experian, and TransUnion), so on-time payments help raise your credit score over time. After you've shown responsible use — typically 6 to 18 months of on-time payments — Capital One may convert your account to an unsecured card and return your deposit.
Key Takeaways
- Your cash deposit becomes your credit limit, and Capital One holds it as security rather than spending it.
- The card charges an annual fee (currently $95) and a higher interest rate than cards for people with good credit, so carrying a balance costs more.
- Every on-time payment is reported to all three credit bureaus, which is the main reason to use this card if you're rebuilding.
- You can request a credit limit increase after about six months of on-time payments, sometimes without putting down more money.
- If you stop paying, Capital One can use your deposit to cover the debt, but they will still report the missed payment to credit bureaus.
Costs You'll Pay
The Indigo card charges an annual fee of $95, which Capital One charges to your account once per year. There is no grace period on interest — if you carry a balance from month to month, interest starts accruing when ready. The current interest rate (called the APR, or annual percentage rate) is typically between 18% and 24%, depending on your credit profile at the time you open the account.
If you use the card for a cash advance — withdrawing money rather than making a purchase — you'll pay a higher interest rate and an upfront fee of 3% of the amount withdrawn. There are no foreign transaction fees if you use the card abroad, which is one of the few breaks the card offers.
The deposit itself costs you nothing in fees, but it does tie up your money. If you deposit $500, you have a $500 credit limit and your $500 is locked away. You cannot use that money for anything else while the account is open.
How to Use It Without Overpaying
The most important rule: pay your full balance every month. Because the interest rate is high, carrying even a small balance becomes expensive fast. If you charge $500 and pay only the minimum, you could end up paying $100 or more in interest charges over several months. Paying in full each month means you pay only the $95 annual fee and nothing more.
Use the card for small, regular purchases you were already planning to make — groceries, gas, a phone bill — and pay it off when ready. This builds your payment history without tempting you to overspend. Many people set up automatic payments from their bank account to may support they never miss a due date.
Keep your balance well below your credit limit. Using more than 30% of your available credit (called your utilization ratio) can hurt your credit score, even if you pay on time. If your limit is $500, try to keep your balance under $150.
What Happens to Your Deposit
Your deposit sits in a separate savings account that Capital One maintains. You cannot withdraw it while your account is open. If you close the account in good standing — meaning you've paid all your bills on time and have no outstanding balance — Capital One will return your deposit to you, usually within 5 to 7 business days.
If you miss payments or default on the account, Capital One can use your deposit to pay down what you owe. They will still report the missed payment to the credit bureaus, so your credit score will take a hit even though they had your deposit to cover part of the debt. If your debt exceeds your deposit, you will still owe the remaining balance.
Some cardholders request a credit limit increase after six months of on-time payments. Capital One may grant this without asking for an additional deposit, which means your credit limit goes up but your deposit stays the same. This improves your utilization ratio and gives you more room to build credit.
When to explore and What to Expect
You can open an Indigo account online through Capital One's website. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. Capital One will pull a hard inquiry on your credit report, which temporarily lowers your score by a few points.
You'll receive a decision within minutes to a few hours. If you're approved, you'll choose your deposit amount and provide banking information so Capital One can withdraw it from your account. The card typically arrives within 7 to 10 business days. Once it arrives, you can start using it when ready.
If you're denied, Capital One will send you a letter explaining why. Common reasons include very recent bankruptcy, active fraud on your credit report, or an income below what they require. You can reapply after addressing the issue, though each process triggers another hard inquiry.
Alternatives to Consider
The Indigo card is not the only secured card on the market. Other options include the Capital One Platinum Secured Card (which has no annual fee but also doesn't report to all three bureaus as consistently), the Discover Secured Card (which offers cash back rewards), and the OpenSky Secured Card (which doesn't require a credit check). Each has different deposit minimums, fees, and reporting practices.
If you have access to a credit union, some offer secured cards with lower fees and better terms than major banks. A credit union card may also be easier to graduate from a secured to an unsecured product.
If your credit is not extremely damaged, you might also look at unsecured cards designed for fair credit — cards that don't require a deposit but do charge higher interest rates and fees. These are riskier because you can overspend without a deposit limit, but they don't tie up your money.
How This Fits Into a Rebuilding Plan
A secured card is a tool, not a solution. Opening an Indigo account and making on-time payments will help your credit score rise, but it takes time — usually 6 to 12 months of consistent use before you see meaningful improvement. Your score also depends on other factors: how much debt you already have, whether you have any missed payments or collections on your report, and how old your credit history is.
The card works best as part of a larger strategy. Pay down existing high-balance credit cards, set up automatic payments so you never miss a due date, and avoid opening multiple new accounts in a short time (each process hurts your score). If you have collections accounts or unpaid debts, address those first — a secured card alone won't fix a broken credit history.
Frequently Asked Questions
Can I use the Indigo card right away after I'm approved?
You can start using it as soon as the physical card arrives in the mail, which is typically 7 to 10 business days after approval. Some issuers offer a temporary card number you can use online before the physical card arrives, but Capital One does not currently offer this feature.
What if I want to increase my credit limit?
After about six months of on-time payments, you can request a credit limit increase through your online account or by calling Capital One. They may grant an increase without requiring an additional deposit, though they may also ask you to deposit more money. Each request triggers a soft inquiry, which doesn't hurt your credit score.
Does the Indigo card have rewards or cash back?
No. The Indigo card does not offer cash back, points, or travel rewards. You earn nothing extra for using it. The card's only benefit is that it reports to credit bureaus and can help you rebuild your score.
What happens if I close the account after a few months?
You can close the account anytime, and Capital One will return your deposit within 5 to 7 business days. However, closing the account early means you've built less payment history, so your credit score won't improve as much. Keeping the account open for at least a year gives you more time to demonstrate responsible use.
Can I get my deposit back without closing the account?
No. Your deposit stays locked in a separate account for as long as the card account is open. The only way to recover it is to close the account or wait for Capital One to convert it to an unsecured card, at which point they return the deposit automatically.