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Indigo Mastercard Review: Designed for Poor Credit, but Loaded With Hidden Fees

Review Updated
Steven Porrello
Author: Steven Porrello
Steven Porrello
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Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Fact Checked: Nathan Alderman
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Offer status

The Indigo® Mastercard® is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date.

The Indigo® Mastercard® is an unsecured credit card designed to help you improve your credit. Unlike secured credit cards, this card doesn't require an upfront deposit before you use it. But be warned: the card may still charge an enormous annual fee, which, unlike a security deposit, is nonrefundable. It might help you build credit, but truthfully -- there are better credit cards for bad credit out there. To help you decide if it's right for you, we'll take a closer look at the Indigo® Mastercard® in this in-depth review.

Ratings Methodology

Indigo® Mastercard®

Indigo® Mastercard®
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good (670-850)
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Good (670-850)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

35.90%

Rewards

N/A

Annual Fee Circle with letter I in it. Monthly fee of $0 for the first year, $150 ($12.50/month) thereafter. Annual fee of $175 for the first year, $49 thereafter.

$175 for the first year, $49 thereafter

Welcome Offer

N/A

  • The card is designed to help you repair credit or build it from scratch. However, it has hidden fees and may not earn rewards for your everyday spending. Even if you don't have great credit, you can find better options.

    • No security deposit
    • Prequalification option available
    • Reports to major credit bureaus
    • Annual fee
    • Confusing rewards program
    • Foreign transaction fee
    • Use wherever Mastercard® is accepted in the U.S.
    • Monthly payments reported to 3 major credit bureaus
    • Keep your money – no security deposit required
    • You can shop online, in-store, and in-app with Indigo

Credit card comparison

We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.

Offer Our Rating Welcome Offer Rewards Program APR Learn More
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for cash back on rotating categories 		Discover will match all the cash back you’ve earned at the end of your first year. 1% - 5% Cashback Circle with letter I in it. Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.

Intro:

Purchases: 0%, 15 months

Balance Transfers: 0%, 15 months

Regular: 18.49% - 27.49% Variable APR *Rates as of December 12, 2024.

Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for cash rewards on everyday spending 		$200 cash rewards Circle with letter I in it. Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. 2% cash rewards Circle with letter I in it. Earn unlimited 2% cash rewards on purchases.

Intro: Circle with letter I in it. 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers

Purchases: 0% intro APR, 12 months from account opening

Balance Transfers: 0% intro APR, 12 months from account opening on qualifying balance transfers

Regular: 19.24%, 24.24%, or 29.24% Variable APR

Apply Now for Wells Fargo Active Cash® Card

On Wells Fargo's Secure Website.

Rates & Fees External Link Icon

Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for unlimited rewards on purchases 		25,000 points Circle with letter I in it. 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases 1.5 points per dollar Circle with letter I in it. Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees, and your points don't expire as long as your account remains open.

Intro: Circle with letter I in it. 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.49% - 28.49% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.

Purchases: 0% Intro APR for 15 billing cycles for purchases

Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days

Regular: 18.49% - 28.49% (Variable)

Apply Now for Bank of America® Travel Rewards credit card

On Bank of America's Secure Website.

Full Indigo Mastercard review

Top perks

In addition to having a really cool credit card design, the Indigo® Mastercard® comes with a few perks worth noting.

No security deposit necessary

Since this is an unsecured credit card, you don't need to put up a security deposit to use it. This could help you if you want to improve your credit, but don't have the $200 to $5,000 deposit that many secured credit cards will require.

Get a prequalification

You can prequalify for the Indigo® Mastercard® to see if you'll get approved. Better yet, it doesn't affect your credit score and is for your information only.

Reports to major credit bureaus

When you use the Indigo® Mastercard®, your monthly payments will be reported to the three major credit bureaus: Equifax, Experian, and TransUnion. This ensures that your good crediting activities are monitored by the companies making credit reports and will overtime be reflected in your credit score.

What could be improved

Don't be fooled by the card's simple design and pretty colors. For all its talk of helping you build credit, the Indigo® Mastercard® isn't transparent about fees and could end up costing you over the long run. Before you apply, let's try to clear up some of this card's disorder.

Confusing fee structure

Though it doesn't state the annual fee upfront on the card's webpage, you'll find out after you apply how much you might have to pay.

The fee is based on your credit history, with stronger credit scores likely getting lower or even $0 fees. A common fee structure is that you'll pay $75 for the first year, then $99 for each year after. By contrast, many of the best secured credit cards charge no annual fees and will return your security deposit when you close or upgrade the card, as long as you make payments on time.

To make things even more confusing, if your card does have a fee, your line of credit will be temporarily reduced by the same amount until you pay it. For example, if your card has a $75 fee, your $300 credit line would initially be $225.

Rewards program isn't for all

Some Indigo® Mastercard® cardholders may earn an unlimited 1.5% cash back on purchases. That's not a bad earn rate, but again -- these rewards are likely reserved for those with better credit scores. In contrast, many secured credit cards we've reviewed have more transparent rewards programs and could earn an unlimited 1.5% to 3% back on your everyday purchases.

Foreign transaction fee

The will charge you a fee of 1% of each transaction in U.S. dollars for any foreign transactions charged to the card. While some credit cards have foreign transaction fees as high as 3%, many others don't charge the fee at all.

Suggested credit score

The Indigo® Mastercard® is designed for people who are building or repairing their credit scores, which generally means their FICO® Score falls below 579. That said, a variety of factors will be considered, such as your income and debt, so it's possible you could get denied with a low score -- or even denied with a high one, too.

The Indigo Mastercard is right for you if:

  • You want to improve or repair your credit score.
  • You've never had a credit card before and you want to build your credit.
  • You don't want to put down a security deposit on a credit card and prefer an unsecured card instead.
  • You want your credit card company to report to major credit bureaus.

Our credit card methodology

At Motley Fool Money, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how Motley Fool Money rates credit cards.

FAQs

  • Celtic Bank and Concora Credit issue the card.

  • If you try to prequalify and you're denied, Celtic Bank might recommend another credit card for you. Your credit score will not be affected.

  • The card is designed to help people with bad credit repair their credit scores. However, given that the card may have an annual fee, it might not be the most economical option for you. If you can afford to put down a security deposit on a secured credit card, you could build your credit and save more over the long run.