What the Indigo Card Actually Does
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 a bank account or getting a line of credit based on your income. Instead, you hand over money upfront, and the card company lets you borrow up to that amount. The deposit stays frozen in a separate account while you use the card for purchases.
This structure exists for one reason: to let people with no credit history or damaged credit build a record of on-time payments. Every month you pay your bill, Indigo reports that payment to the three major credit bureaus — Equifax, Experian, and TransUnion. After 7 to 10 months of consistent payments, your credit score typically rises enough that you can move to an unsecured card and get your deposit back.
The Indigo Card is issued by Indigo Bank, a bank that specializes in secured cards. It's not a store card, not a rewards card, and not a card for people with established credit. It's a tool for rebuilding.
Key Takeaways
- The Indigo Card requires a cash deposit between $250 and $2,500 that becomes your credit limit, and that money stays locked away while you use the card.
- You pay an annual fee of $95 in the first year and $99 after that, which is higher than many competing secured cards but typical for this product category.
- The card reports to all three credit bureaus each month, so consistent on-time payments will raise your credit score over time.
- After 7 to 10 months of on-time payments, you may be able to move to an unsecured card and recover your deposit, though approval depends on your payment history and current credit score.
- Better alternatives exist if you have no annual fee requirement or if you may have access to for a card with cash-back rewards.
How Much the Indigo Card Costs You
The annual fee is $95 in year one and $99 in year two and beyond. That's not the lowest in the secured card market — some competitors charge $0 to $49 annually — but it's not unusual for cards that report to all three bureaus and offer customer service by phone.
The card charges a standard 27.99% APR (annual percentage rate) if you carry a balance month to month. That's high, but it's the standard rate for secured cards aimed at people rebuilding credit. The real cost of the Indigo Card is not the interest rate; it's the annual fee you pay whether you use the card or not.
There are no foreign transaction fees, no late fees beyond standard bank penalties, and no over-limit fees — the card straightforward declines if you try to spend above your limit. That's a safety feature, not a cost, but it's worth knowing.
When the Indigo Card Makes Sense
The Indigo Card is a reasonable choice if you have no credit history at all — you've never had a credit card, car loan, or other line of credit — and you want a straightforward way to build a record. The card reports monthly, so you'll see movement in your credit score within a few months of consistent use.
It also works if you're rebuilding after past damage and you've already tried other secured cards without success. The Indigo Card doesn't require a checking account with the bank, doesn't require a minimum income, and doesn't pull a hard inquiry that damages your score further. The process is straightforward and the approval is fast — usually within one business day.
The card is also useful if you need a credit limit higher than $500. Some secured cards max out at $500 or $1,000. Indigo goes up to $2,500, which matters if you're trying to build credit while also having a card you can actually use for groceries or gas without maxing it out when ready.
When to Look Elsewhere
If you want to avoid an annual fee, the Indigo Card is not your best option. The Chime Credit Builder Card and the Capital One Secured Mastercard both have $0 annual fees. You'll build credit just as effectively with either of them, and you'll save $95 to $99 per year.
If you have fair credit — a score around 580 to 669 — you may already may have access to for an unsecured card with no deposit required. Check whether you're may be able to access for a Capital One Platinum or Discover It Secured before you commit to Indigo's deposit and annual fee. A hard inquiry will show up on your credit report either way, so there's no penalty to checking.
If you want cash-back rewards or travel points, the Indigo Card offers neither. It's a plain card designed to do one thing: report your payment history to the bureaus. If you're rebuilding credit and you want rewards at the same time, you're looking at a different product category entirely, and most cards in that category won't approve you if your score is below 600.
What Happens After You've Built Credit
Indigo doesn't automatically graduate you to an unsecured card. You have to request it, usually after 7 to 10 months of on-time payments. When you do, the bank reviews your payment history and your current credit score. If both look solid, they'll convert your account to an unsecured Indigo Mastercard, and your deposit gets returned to you — usually within 5 to 10 business days.
The unsecured version still has an annual fee ($99), still has a 27.99% APR, and still offers no rewards. But you get your money back, and you can now use the card without a deposit backing it. At that point, you can keep the Indigo card open to maintain your credit history, or you can move to a different card with better terms.
Some people keep the Indigo card open even after graduating to unsecured cards, because closing it would lower their average account age and temporarily hurt their score. Others close it when ready and move to a card with cash-back rewards or a lower APR. Either choice is fine — the important thing is that you've built enough credit history that you have options.
How the Indigo Card Compares to Other Secured Cards
| Card | Annual Fee | Deposit Range | Reports to All 3 Bureaus | APR |
|---|---|---|---|---|
| Indigo Card | $95 year 1, $99 after | $250–$2,500 | Yes | 27.99% |
| Capital One Secured Mastercard | $0 | $200–$2,500 | Yes | 26.99% |
| Chime Credit Builder Card | $0 | $200–$1,000 | Yes | N/A (no interest if paid in full) |
| Discover It Secured | $0 | $200–$2,500 | Yes | 25.99% |
The main difference between Indigo and its competitors is the annual fee. Capital One, Chime, and Discover all charge $0. Indigo charges $95 to $99. All four report to all three bureaus, so your credit-building timeline is roughly the same.
The Indigo Card's advantage is customer service and simplicity. The process is fast, approval is nearly automatic if you have a deposit, and you don't need a checking account. Some people prefer that straightforward approach. But if you're cost-conscious, the no-fee alternatives do the same job for less money.
Frequently Asked Questions
Will the Indigo Card hurt my credit score when I explore?
Yes, but only slightly and only temporarily. The process triggers a hard inquiry, which typically lowers your score by 5 to 10 points. That dip fades within a few months as you build positive payment history. The long-term benefit of on-time payments far outweighs the short-term cost of the inquiry.
What if I miss a payment on the Indigo Card?
A missed payment will be reported to all three credit bureaus and will damage your score. The bank may also charge a late fee and increase your APR. If you miss a payment, contact the bank when ready to bring the account current. One late payment is recoverable; multiple late payments will make rebuilding credit much harder.
Can I get my deposit back before 7 to 10 months?
Not by converting to an unsecured card. Some banks allow you to withdraw your deposit early if you close the account, but closing the account stops the credit-building process and may hurt your score. It's better to keep the account open and wait for the conversion offer.
Does the Indigo Card offer a sign-up bonus?
No. Secured cards aimed at people rebuilding credit typically don't offer sign-up bonuses or rewards. The "bonus" is the opportunity to build credit history and eventually move to better cards.
What credit score do I need to be approved for the Indigo Card?
Indigo doesn't publish a minimum credit score requirement. The approval is based mainly on your deposit and your ability to make payments. People with no credit history, bad credit, or fair credit all get approved regularly. The deposit is what matters most.