The Indigo Card is real, but it's designed to extract fees from people rebuilding credit
The Indigo Card is a genuine credit card issued by Latitude Inc., a subsidiary of Pathward National Bank. It exists, it reports to credit bureaus, and people do use it. But "real" does not mean "good." The card charges an annual fee of $89 to $99 (depending on the version), a monthly maintenance fee of $7.50, a foreign transaction fee of 3%, and a cash advance fee of $3 or 3% of the amount, whichever is higher. Those fees stack up fast, especially on a card designed for people who have limited money to begin with.
The core problem: Indigo makes money from your struggle. The card reports your payment history to the three major credit bureaus, which is useful for rebuilding credit. But the fees are so high that you can pay them on time every month and still lose money. A $500 credit limit with a $99 annual fee means you're paying nearly 20% just to hold the card, before you charge anything or miss a payment.
Key Takeaways
- Indigo charges $89 to $99 annually plus a $7.50 monthly maintenance fee, making it one of the most expensive secured cards on the market.
- The card does report to all three credit bureaus, so on-time payments will show up on your credit report and help rebuild your score over time.
- You must deposit money as collateral (a secured card), but Indigo's fees mean your actual available credit is much lower than your deposit.
- Cheaper alternatives exist: Capital One Secured Card has no annual fee and no monthly fee, making it a better choice for most people rebuilding credit.
- If you use Indigo, treat it as a short-term tool to rebuild credit, not a long-term card — switch to a no-fee option as soon as your score improves.
How Indigo's fee structure actually works
Indigo is a secured credit card, meaning you deposit cash as collateral and the card company gives you a credit limit equal to (or sometimes less than) your deposit. If you deposit $500, your credit limit is typically $500. That sounds straightforward until you look at the fees.
The $89 to $99 annual fee hits your account when ready. The $7.50 monthly maintenance fee ($90 per year) hits every month. That's $179 to $189 in fees before you charge a single dollar. On a $500 deposit, you've already lost 36% to 38% of your available credit to fees alone. If you charge $200 and pay it off in full, you've still paid $179 in fees for the privilege of using $200 of your own money.
Indigo also charges a one-time account setup fee of $0 to $35 depending on the version you choose, though some versions waive this. Read the fine print before you explore, because that fee varies.
What Indigo actually does for your credit score
Indigo reports your payment history to Equifax, Experian, and TransUnion. That's the one thing it does right. If you make on-time payments, those payments show up on your credit report, and your score will improve over time. The improvement is real, but it's not because of Indigo — it's because you're making on-time payments. You could get the same result with a cheaper card.
The card does not report your credit limit to the bureaus in a way that helps you. Secured cards typically show a lower available credit than you actually have, because the deposit is held separately. This means your credit utilization ratio (the amount you owe divided by your limit) may look worse than it actually is, which can slow your score recovery.
Indigo also does not waive the annual fee after a certain period or convert to an unsecured card automatically. You have to request conversion, and there's no may provide it will happen. Many people stay on Indigo for years, paying fees the entire time, because they don't realize they could move to a better card.
Comparing Indigo to other secured cards
The Capital One Secured Card charges $0 annual fee and $0 monthly fee. You deposit $200 to $2,500 as collateral, and your credit limit matches your deposit. After six months of on-time payments, Capital One may increase your credit limit without requiring a larger deposit. After a year, you may be able to convert to an unsecured card. The only fee you pay is interest if you carry a balance.
The Discover Secured Card also charges $0 annual fee and $0 monthly fee. Your deposit is $200 to $2,500, and Discover reports to all three bureaus. After eight months of on-time payments, Discover reviews your account for conversion to an unsecured card. Like Capital One, you only pay interest if you carry a balance.
The OpenSky Secured Card charges $35 annual fee (one-time), no monthly fee, and no deposit requirement — you just need a bank account. Your credit limit is $200 to $3,000 based on your income and credit history. OpenSky reports to all three bureaus and converts to unsecured after 12 months of on-time payments.
| Card | Annual Fee | Monthly Fee | Minimum Deposit | Reports to Bureaus |
|---|---|---|---|---|
| Indigo | $89–$99 | $7.50 | $250–$2,500 | Yes (all 3) |
| Capital One Secured | $0 | $0 | $200–$2,500 | Yes (all 3) |
| Discover Secured | $0 | $0 | $200–$2,500 | Yes (all 3) |
| OpenSky Secured | $35 (one-time) | $0 | $0 (income-based) | Yes (all 3) |
Indigo is the most expensive option by a significant margin. You would have to stay on Indigo for more than two years before you paid as much in fees as you would on OpenSky in a single year. There is no financial reason to choose Indigo over Capital One or Discover unless you cannot meet their deposit requirements — and even then, OpenSky is cheaper.
Red flags that suggest Indigo is not the right choice
Indigo advertises heavily on websites and apps aimed at people with bad credit. That advertising costs money, and Indigo pays for it by charging you fees. You are funding their marketing. If you see Indigo promoted on a "bad credit solutions" site, that's a sign the site is being paid to recommend it, not that it's the best option for you.
Indigo also uses language like "no credit check" and "may provide approval" in its marketing. Those phrases are designed to appeal to people in crisis, but they're also a sign that the company is betting on high fees to make money, not on your success. A company that makes money when you fail has no incentive to help you rebuild credit quickly.
The monthly maintenance fee is the biggest red flag. Most credit cards, even for people with bad credit, do not charge a monthly fee just to hold the card. That fee exists because Indigo knows many customers will pay it without thinking, and it adds up to hundreds of dollars per year with no benefit to you.
When Indigo might make sense (and when it doesn't)
Indigo might make sense if you have already been turned down by Capital One, Discover, and OpenSky, and you need a credit card right now to start rebuilding. If that's your situation, Indigo is real and it will report to the bureaus. But even then, use it as a temporary tool, not a permanent card. Make small purchases, pay them off when ready, and move to a no-fee card as soon as your score improves enough to be approved elsewhere.
Indigo does not make sense if you have any other option. If you can deposit money, Capital One and Discover are objectively better. If you have a bank account, OpenSky is better. If you have a job and some income history, you may even be approved for a regular unsecured card with a higher limit and no fees. Check those options first.
Do not stay on Indigo long-term. The fees will cost you thousands of dollars over five years, and by that point your credit score should have improved enough to move to a card that charges nothing. Treat Indigo as a stepping stone, not a destination.
Frequently Asked Questions
Does Indigo report to credit bureaus?
Yes, Indigo reports to all three major credit bureaus: Equifax, Experian, and TransUnion. On-time payments will show up on your credit report and help rebuild your score. Late payments will also show up and hurt your score, so the reporting works both ways.
Can I get my deposit back?
Yes, your deposit is held in a separate account and is yours. If you close the card or convert to an unsecured card, you get your deposit back. The fees you pay are separate from the deposit and are not refundable.
How long does it take to convert Indigo to an unsecured card?
Indigo does not have a set timeline for conversion. You can request conversion after 12 to 18 months of on-time payments, but approval is not may provide. Many people never convert and end up switching to a different card instead.
What happens if I miss a payment on Indigo?
A missed payment will be reported to the credit bureaus and will damage your credit score. Indigo may also charge a late fee (typically $25 to $35) and increase your interest rate. If you miss multiple payments, Indigo may close your account and keep your deposit to cover the debt.
Is Indigo a scam?
Indigo is not a scam — it's a real card issued by a real bank. But it's designed to make money from people rebuilding credit through high fees, not to help you rebuild as quickly or cheaply as possible. It's a legitimate product with a business model that benefits the company more than it benefits you.