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OPEN BANK ACCOUNT START SAVING Search OPEN BANK ACCOUNT Banking Learn Savings Accounts Checking Accounts Certificate of Deposit Money Market Accounts Credit Unions Interest Rates Reviews Get Started Best Banks Best High Yield Savings Accounts Best Checking Accounts Best CD Rates Best Online Banks Best National Banks Best Money Market Accounts Best Premium Checking Accounts Best Regional Banks Best Neobanks TRUSTED WOMEN IN FINANCE Featured Best Banks Latest on Mortgage Money's Most Influential Women How To Retire Anywhere Investing Learn Stocks Bonds Cryptocurrency Brokerages Funds Investing Strategy Reviews Get Started Best Investments Best Mutual Funds Best Stocks for Beginners Cheap Stocks to Buy Now Best Cryptocurrency to Invest In Next Big Cryptocurrency TRUSTED WOMEN IN FINANCE Featured Real Estate Crypto on the GO Money's Most Influential Women Best Banks Credit Cards Learn News & Advice Rewards Retail Balance Transfer Reviews Get Started Best Credit Cards 2023 Best Reward Credit Cards Best Balance Transfer Credit Cards Best Cash Back Credit Cards Critics' Choice Credit Cards Best Travel Credit Cards Best Airline Credit Cards Credit Check Credit Build Credit Repair Credit Build Credit Fast FIND THE BEST CARD FOR YOU Featured Financially Savvy Female GEN Z: The Future of Finance Best Banks Money's Most Influential Women Taxes Tax Filing Expert Tax Advice Tax Brackets and Rates Tax Deadline and Tax Due Dates Step-by-Step Guide to Filing Taxes I'm a Tax Expert: 8 Mistakes Filers Often Make Do I Have To File Taxes? 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Tax Deductions & Refunds What Can I Write Off on My Taxes? What Tax Credits Can I Qualify For? Homeowner Tax Breaks What Is the EV Tax Credit? Ways To Lower Your Tax Bill When Will I Get My Tax Refund? Average Tax Refund Check in Every State What Americans Do With Their Tax Refund Biggest Mistake People Make With Their Tax Refund Are Bonuses Taxed Higher? TAKE THE STRESS OUT OF TAXES Featured Financially Savvy Female Tax Guide Best Banks How To Retire Anywhere Loans Learn Home Loans Student Loans Personal Loans Auto Loans Get Started Best Student Loan Refinance Options Best Personal Loans Best Auto Loans SECURE YOUR FINANCIAL FUTURE Featured Financially Savvy Female GEN Z: The Future of Finance Best Banks How To Retire Anywhere Retirement Learn 401(k)s IRAs Social Security Retirement Planning Get Started 401(k)s for Beginners IRAs for Beginners IRAs vs. 401(k)s Retirement Savings Retire Early Retirement at Every Budget SECURE YOUR FINANCIAL FUTURE Featured Tax Guide Best Banks Financially Savvy Female Money's Most Influential Women Saving & Spending Learn Saving Money Money Shopping Budgeting Home Tips Net Worth Financial Planning Travel Get Started Create a Budget Manage Debt Apply for a Mortgage Live Richer Podcast Create a Financial Plan START YOUR DEBT-FREE JOURNEY Featured Tax Guide How To Retire Anywhere Best Banks Money's Most Influential Women Series Financially Savvy Female GEN Z: The Future of Finance Best Banks Retirement at Any Age Calculators Calculators Retirement Calculator Gas Calculator Mortgage Calculator Tax Calculator Trending Trending Trending Topics News & Events Crypto on the Go Travel Rich Tax Guide Best Banks 2024 GEN Z: The Future of Finances Small Business Spotlight Money's Most Influential Women Financially Savvy Female Economy Explained Retirement at Every Budget Jobs and Side Gigs What's the State of US Real Estate Trending Articles States Whose Economies Are Failing vs. States Whose Economies Are Thriving 9 Valuable American Nickels in Circulation 6 Places to Retire on the East Coast That Are Just as Cheap as Portland, Sacramento and Olympia TRUSTED WOMEN IN FINANCE Featured Tax Guide Best Banks Financially Savvy Female Live Richer Podcast Careers Our Mission × Advertiser Disclosure GOBankingRates works with many financial advertisers to showcase their products and services to our audiences. These brands compensate us to advertise their products in ads across our site. This compensation may impact how and where products appear on this site. We are not a comparison-tool and these offers do not represent all available deposit, investment, loan or credit products. Credit Cards / Advice INDIGO CREDIT CARD: 6 THINGS YOU NEED TO KNOW May 24, 2023 6 min Read Written by Taylor Milam-Samuel Edited by Susan Kim Jose carlos Cerdeno / Getty Images/iStockphoto COMMITMENT TO OUR READERS GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology. 20 Years Helping You Live Richer Reviewed by Experts Trusted by Millions of Readers Whether you’re trying to recover from bankruptcy, establish a credit history for the first time or raise your credit score, you might have difficulty opening a credit card. But the Indigo credit card is designed for people with low credit scores. So if you’re looking to build credit or raise your credit score, the Indigo Mastercard might be a good fit. The card offers a competitive annual percentage rate and a low foreign transaction fee, which can be helpful if you travel. But the credit limit is low, and you might have to pay an annual fee. WHAT TO KNOW ABOUT THE INDIGO CREDIT CARD Here’s everything you need to know about the Indigo credit card to determine if it’s the right choice. 1. YOU CAN USE THE CARD TO BUILD CREDIT The Indigo credit card is for people with low credit scores. If you have a low credit score, you might not be able to get approved for a credit card. As a result, you can’t take steps, like making on-time payments, to raise your score. It’s a Catch-22. But the Indigo credit card is designed for this situation. The Indigo credit card reports your payment history to the three major credit bureaus, meaning you can use the card to help you build credit by regularly paying your bill on time. Plus, you can check if you are pre-qualified for the card with a soft credit inquiry, which doesn’t impact your credit score. 2. IT’S A LEGITIMATE CREDIT CARD Celtic Bank in Utah issues the Indigo credit card. It’s an FDIC-insured bank, meaning that the Federal Deposit Insurance Corp. insures the bank’s accounts in case of bank failure. Even though FDIC insurance doesn’t necessarily impact credit cards, it indicates that the bank is legitimate. Plus, the Indigo credit card is a Mastercard that includes additional protection — Mastercard ID Theft Protection for help with identity theft and zero-liability protection that ensures you’re not responsible for unauthorized charges. 3. IT’S EASY TO PRE-QUALIFY WITHOUT IMPACTING YOUR SCORE There are two ways to determine whether you are qualified for a credit card: a hard credit inquiry, which can temporarily lower your credit score, or a soft credit inquiry, which does not impact your score. Even though a hard credit inquiry only affects your score temporarily, you might have additional concerns about lowering your score if you’re trying to raise it. With the Indigo credit card, you can pre-qualify for the credit card with a soft credit inquiry that does not impact your score. It’s a helpful, low-risk way to review your options before deciding to move forward. 4. THE CREDIT LIMIT IS LOW The Indigo Mastercard offers a credit limit of $300. Even though it’s not necessarily a low limit for a credit builder card, it can make it challenging to maintain a solid credit utilization ratio. Your credit utilization ratio is the amount of credit you have available versus the amount you use. You can calculate your ratio by dividing the amount of credit you use by the available amount. For example, if you have a limit of $300 and use $150, your credit utilization ratio is 50%. The ratio is one of the factors that credit bureaus consider when determining your credit score. It’s usually best to keep your utilization ratio under 30%. 5. THE CARD OFFERS A STANDARD APR The average APR for credit cards is 24.14%, according to Forbes Advisor. The Indigo credit card has an APR of 24.9%. Even though it’s a higher rate than some other cards on the market, it’s a standard APR, especially since the credit card is for people with low credit scores. It’s a good idea to shop around for the best fit since a few percentage points can make a difference when paying interest. But the APR is competitive for credit cards in this category. Plus, you’ll ideally pay your balance in full and avoid interest charges altogether. MAKE YOUR MONEY WORK FOR YOU Get the latest news on investing, money, and more with our free newsletter. Submit By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time. YOU'RE SUBSCRIBED! Check your inbox for more details. 6. THE INTERNATIONAL TRANSACTION FEE IS LOW With a 1% international transaction fee, the Indigo credit card offers a competitive perk for travel. Some credit cards don’t have any fees for international purchases, but others charge up to 3%. If you travel regularly, it’s a critical fee to note. But it might not matter as much if you’re not a regular traveler. BOTTOM LINE If you have a low credit score and are serious about raising it, the Indigo Mastercard could be a solid option. To take full advantage of the card, pay your balance in full and avoid interest charges. You might consider a different credit card with better perks or a lower APR as your credit score increases. But the Indigo credit card can be helpful if you’re committed to completing the necessary steps to raise your score. FAQ * Can you use an Indigo Mastercard anywhere? * You can use the Indigo credit card anywhere that accepts Mastercard, including foreign countries. It's a standard credit card designed for people with low or fair credit scores. * Is there an annual fee for the Indigo Mastercard? * The annual fee for the Indigo credit card ranges from $0 to $99. The cost is based on the bank's review of your credit profile and includes three annual fee options: $75 the first year and $99 every year after, $59 each year or $0 each year. * It's important to consider annual fees to determine which card fits best. Some cards with annual fees come with additional perks like travel points, airport lounge access and other incentives that help offset the cost. The Indigo credit card does not offer additional perks, though. So it might be a good idea to consider if you can access a card from another bank without one. * What bank is the Indigo credit card issued by? * The Indigo credit card is a Mastercard-branded card issued by Celtic Bank. Celtic Bank is FDIC-insured, and the card comes with additional protection against fraud through Mastercard. Information is accurate as of May 23, 2023. Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article. Share This Article: SUBSCRIBE TO OUR FREE NEWSLETTER! Get the latest news on investing, smart money moves, & more! Submit By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time. YOU'RE SUBSCRIBED! Check your inbox for more details. 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