Have you been rejected for loans or other credit cards because your credit isn’t good enough?
If so, the Indigo credit card might be worth considering in 2019.
The Indigo Platinum MasterCard aims to give consumers with limited or below-average credit a chance to improve their credit histories.
And unlike other cards designed for this group, the Indigo credit card is not secured, which means cardholders don’t have to put down a deposit equal to their credit line.
This review will give you some of the in’s and out’s of the Indigo credit card, so you can make a more informed decision.
The Indigo Credit Card’s Unique Application Process
The application process is geared toward consumers who can’t afford any dings to their credit score.
Consumers are first asked to prequalify, which has no credit score impact, by filling out an online form that asks for their name, address, city, state, zip code, date of birth, Social Security number, email address, and phone number.
If you prequalify, you will then need to complete a full application to be evaluated for approval.
Prequalifying is no guarantee of approval.
Also, if you don’t prequalify for the Indigo card, you may be offered the opportunity to apply for another card.
Indigo credit card customers’ payment history is reported to all three major credit bureaus – Equifax, Experian, and TransUnion.
That’s useful if you’re trying to establish or rebuild credit, as long as you make consistent, on-time payments.
Further Review of the Indigo Credit Card
While the Indigo card isn’t a secured credit card, it does have a credit limit of only $300.
Be careful not to exceed that amount, because the card also has a $38 over-limit fee.
If you’re approved, your card will either have no annual fee, a $59 annual fee, or a $75 annual fee in the first year and a $99 annual fee thereafter.
In any case, your APR will be 23.9%. The penalty APR is 29.9% and may apply indefinitely if you make a late payment.
The late payment fee may be up to $38.
If you get approved for an annual fee card, the annual fee will reduce your available credit until you pay down your balance.
If you don’t want to pay the annual fee, you can close the card after getting approved but before making any charges and you won’t be responsible for paying the fee.
The cash advance fee is 0% during the first year.
After that, it’s $5 or 5% per advance, whichever is greater, but not to exceed $100.
The foreign transaction fee is 1%. There is no balance transfer option.
Other Things to Know
Since the Indigo card is a MasterCard, it comes with MasterCard Platinum Card benefits such as rental car insurance and extended warranty coverage.
If a credit card doesn’t feel right for you, there are still other options for potentially getting the financing you need.