5 Things To Know About Indigo Credit Card
Here are 5 things you absolutely should know about the Indigo credit card before applying for one.
Indigo Mastercard, commonly known as the "Indigo credit card," is issued by Celtic Bank and serviced by Genesis FS Card Services. This card is designed to help individuals with poor or limited credit histories access credit, with no requirement for a security deposit, making it an entry point for those looking to build or rebuild their credit scores.
While the Indigo credit card provides a pathway for individuals with low or negative credit scores to access credit, it comes with significant drawbacks. The card carries a high annual percentage rate (APR) of 24.9% and may also include annual fees ranging from $0 to $99, depending on the applicant's creditworthiness. Due to these high costs, we recommend considering this card only as a last resort when other credit-building options are unavailable.
In this article, we’ll delve into the key details of the Indigo credit card, including its fees, pricing structure, and other essential considerations.
Key takeaways:
- The target audience for the Indigo credit cad is individuals lacking funds for secured credit cards or with low/no credit scores.
- Costs associated with the Indigo card are very high: Annual fees range from $75 (first year) to $99 thereafter.
- High APR for purchases (24.9%) and cash advances (29.9%), with minimum charges applicable.
- The Indigo Mastercard is issued by Celtic Bank and serviced by Concora Credit.
- App-based access for Indigo card management and customer service is available via the Celtic Bank applications for iOS and Android.
1. Who is the Indigo credit card for?
The Indigo Mastercard is for just about anyone seeking a credit card without imposing credit score prerequisites or demanding a security deposit. Consequently, two distinct customer segments might find this card appealing, namely:
- Customers who lack funds for secured credit cards that require a security deposit upfront.
- Customers who have low, negative, or no credit score.
If the above doesn't describe you, we would strongly recommend you stay away from the Indigo credit card as there are better options available, with lower fees, higher limits, and lower penalties. In this sense, the Indigo Mastercard is very similar to the Milestone credit card, which is another credit card product developed by Concora Credit that targets customers with less-than-optimal credit scores.
At this point, it’s worth noting that you could consider using any of the crypto credit cards if you deal with digital assets. Crypto cards are usually very cheap and feature cash-back programs that allow you to get back anywhere from 1% to 8% on your purchases. However, they don’t provide access to cash advances, unlike Indigo and Milestone credit cards.
To pre-qualify for the Indigo Mastercard, you need to be at least 18 years old, have a valid social security number, physical address, and a US IP address. In addition, you need to provide a review of your income and debt, and identity verification requirements.
2. How much does the Indigo credit card cost?
The Indigo credit card costs as much as $75 per year for the first year, and $99 after the first year. Depending on the terms offered to you when applying for the card, you could expect to pay no monthly or annual fees.
There’s also the annual percentage rate that the Indigo Mastercard charges for cash advances of 29.9% annual percentage rate (APR) per year. On top of that, the customers can expect to pay 24.9% APR for purchases.
Indigo Mastercard interest rates and interest charges:
| APR for Purchases | 24.9% |
|---|---|
| APR for Cash Advances | 29.9% |
| Paying Interest | The due date is at least 25 days after the close of each billing cycle. |
| Minimum Interest Charge | If you are charged interest, the charge will be no less than $1.00. |
In addition to the downright exuberant purchasing and cash advance fees, there are several additional fees that you should be aware of. It is worth noting that some of the fees count towards the initial credit line of $300. For example, the annual fee of $75 is subtracted from the credit line, meaning that your initial available credit will be $225 (until you pay the fee).
Indigo Mastercard fees:
| Set Up and Maintenance Fees |
|
|---|---|
| Transaction Fees |
|
| Penalty Fees |
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3. Who issues the Indigo credit card?
The Indigo Mastercard is issued by Celtic Bank, an FDIC-insured financial institution based in Salt Lake City, United States. While it’s issued by Celtic Bank, the Indigo Mastercard is a white-label product offered by Concora Credit (formerly Genesis Financial Solutions), a company that develops financial products for consumers with low or no credit scores.
The FDIC insurance ensures that the money deposited with the bank is safe in the unlikely event of a bank failure. According to national guidelines, the FDIC protects depositors' funds to the tune of $250,000.
It is worth noting that you can use the Indigo credit card via an app for Android and iOS devices that are available to Celtic Bank users. Indigo credit card customer service is provided by the bank as well, which means that if you have any problems, the bank’s support should be able to help you out.
4. How to cancel the Indigo credit card?
You can cancel the Indigo Mastercard at any time. However, you should not that you will only get your annual fee back if you cancel it before you make any purchases or take advantage of cash advances.
If you’ve already made a payment or used cash advances, you will have to pay off any outstanding debt. Also, you’ll face a reduction in your credit score, since closing a credit card temporarily impacts your credit score negatively.
5. What are the pros and cons of the Indigo credit card?
While the fees associated with the Indigo credit card are very high, there are a couple of benefits to the product as well, which might tip the scale in favor of the Indigo credit card for some users. The list of pros includes no credit score requirements, FDIC insurance, and reporting to all three major credit bureaus (Equifax, Experian, and TransUnion).
Indigo Mastercard pros:
- No security deposit required
- Available to customers with poor/no credit score
- Reports to all three major credit reporting agencies
- Fraud protection in case of theft
- FDIC-insured balance
Indigo Mastercard cons:
- 24.9% APR for purchases and 29.9% for cash advances
- High fees
- Low initial credit line of $300
- Annual fee counts toward the credit line
Indigo credit card FAQs
Is Indigo a good credit card?
The quality of a credit card can vary based on individual needs and circumstances. Milestone is designed for individuals with less-than-perfect credit. It may offer benefits such as helping to build credit, but it might have higher fees and interest rates.
Is Indigo a safe credit card?
Indigo, like other credit cards, operates under industry-standard security measures to protect your information. However, ensure you follow best practices like safeguarding your card details and monitoring your transactions regularly for any suspicious activity to enhance its safety.
Can you use an Indigo card anywhere?
The Indigo credit card is accepted anywhere where Mastercard credit cards are accepted (about 37 million merchants globally). It's a good practice to check with the specific retailer or establishment to confirm they accept Indigo before making a purchase.
How to close an Indigo credit card?
To close your Indigo credit card, contact the customer service number on the back of the card or visit the issuer's website. They'll guide you through the process. Make sure to clear any outstanding balance before closing the card.
What bank does the Indigo credit card use?
Indigo credit cards are issued by Celtic Bank and serviced by Concora Credit (formerly Genesis Financial Solutions).
The bottom line
The Indigo credit card is a very expensive option for customers who want to rebuild their credit score. If you decide to go with the Indigo card, make sure to use it just to rebuild your credit score, and then seek some other, more affordable credit card option to switch to. If you want to take a look at alternatives, we provide a list of the best credit cards for a 600 credit score and a list of $1,000 limit credit cards for those with bad credit.
If you want to read more about borderline predatory financial products and services, check out our list of the worst banks in America.
For additional relevant content, feel free to give the following articles a read:
- 5 Best Credit Cards for 600 Credit Score in 2024
- 5 Best Credit Cards For Young Adults in 2024
- 5 Best No-Annual-Fee Travel Credits Cards in 2024
If you are interested in using cryptocurrency-powered credit cards, we suggest you take a look at our selection of the best crypto credit cards with spending rewards.
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