For individuals looking to improve or rebuild their credit, the Indigo Credit Card is often a term that comes up in their search. As credit cards can be instrumental tools in establishing and maintaining a solid credit history, it’s essential to understand what this card brings to the table. In this article, we’ll explore the features, benefits, and potential drawbacks of the Indigo Credit Card, aiming to give you a comprehensive view of what it offers.
Understanding Indigo Credit Card
The Indigo Credit Card is designed to cater to individuals with less-than-perfect credit histories or those who are looking to establish their credit for the first time. If you fall into one of these categories, you’re probably aware that credit cards tailored to this market segment typically come with less favorable terms compared to cards from major banks. This often means annual fees, high-interest rates, and relatively low credit limits.
Annual Fees: The Indigo Card doesn’t break this trend, as it typically involves annual fees. The exact fee may vary depending on your creditworthiness. While there is a possibility of obtaining a card with no annual fee, it’s more likely that you’ll face an annual fee of $59 or even $75, especially if your credit history is particularly poor. In the future, the annual fee could even climb to $99.
Interest Rates: The Indigo card boasts an interest rate of 23.9%, which is considered high. It’s crucial to factor in this interest rate when considering your financial obligations with the card.
Credit Limit: Your credit limit may vary based on your credit history, but the example they provide is a $300 credit limit. It’s a reasonable estimate to work with, and it’s important to note that if you have an annual fee, it will be deducted from your credit limit immediately, leaving you with less available credit.
Key Features:
- Pre-qualification Available: Before applying, you can check if you pre-qualify, which won’t affect your credit score.
- Reports to Major Credit Bureaus: The card issuer reports your activities to the three major credit bureaus. Consistent on-time payments can positively impact your credit score.
- Online Account Management: Access your account information, make payments, and monitor your credit card activities online.
- Custom Card Design: Some versions of the card allow you to select a unique design to personalize your card.
Assessing Your Eligibility
Before applying for the Indigo Platinum MasterCard, you can use the pre-qualification tool on their website. This tool asks for basic information such as your name, address, and social security number and provides an indication of your likelihood of approval. While it’s not a guarantee, it’s a useful tool to gauge your chances of approval without affecting your credit score. If you receive a negative response from the pre-qualification tool, it’s a clear sign that you may want to explore other options.
If you decide to proceed with a full application, keep in mind that this will result in a “hard pull” on your credit, which may have a minor impact on your credit score. However, if the pre-qualification tool suggests you’re likely to be approved, there’s a good chance you will be.
The Indigo Credit Card: A Closer Look
The Indigo Card is offered by Genesis Card Services in collaboration with Celtic Bank. While Genesis isn’t a major player in the credit card industry, they have experience serving individuals with credit challenges.
Applying for the Indigo Credit Card: Quick Steps
Want to get this credit card? Follow the step-by-step process given below:
- Visit the Website: Go to the official Indigo Credit Card site.
- Pre-Qualify (Optional): Use the tool to see if you might be approved without a credit hit.
- Click “Apply Now”: Start the official application.
- Enter Personal Info: Fill in your name, address, email, and phone.
- Add Financial Info: Provide details about your income and expenses.
- Input Security Details: Give your date of birth and Social Security number.
- Review Terms: Check the card’s terms, fees, and interest rates.
- Submit: Click the “Submit” button.
- Wait: Get your decision, which usually comes quickly.
- Check Mail: If approved, your card will arrive. Activate it when it does.
Is the Indigo Credit Card Right for You?
The Indigo Platinum Credit Card is one of several options available to individuals with less-than-ideal credit histories. However, it’s essential to weigh its benefits and drawbacks against your financial goals. Here’s what you should consider:
Benefits:
- Building or Rebuilding Credit: For those who have limited or damaged credit history, the Indigo Credit Card provides an avenue to build or rebuild credit.
- Accepted Nationwide: As a Mastercard, this Credit Card is widely accepted across various merchants nationwide.
- Fraud Protection: The card comes with built-in fraud protection, ensuring that you’re not held responsible for unauthorized charges.
Drawbacks:
- High APR: The card tends to come with a higher APR compared to cards for those with good to excellent credit. It’s essential to pay your balance in full every month to avoid hefty interest charges.
- Limited Rewards: Unlike many credit cards on the market, this Credit Card doesn’t offer significant rewards or cash-back opportunities.
- Potential Annual Fee: Depending on your credit profile, you may be required to pay an annual fee.
Our Recommendation: Consider a Secured Credit Card
While the Indigo Platinum Credit Card can help improve your credit, it’s not our top recommendation. We suggest exploring secured credit cards, which require a security deposit but offer a more secure path to building or rebuilding your credit. Many secured cards come from major credit card issuers and may eventually transition to unsecured cards with responsible use.
With a secured card, you’ll put down a security deposit (usually between $300 and $500), and in return, you’ll receive a credit limit equal to your deposit. Over time, as you demonstrate responsible credit behavior, you can expect your security deposit to be returned to you, and you may even become eligible for unsecured cards from the same issuer.
While some individuals may be hesitant to provide a security deposit, this approach often yields better results in the long run, as it opens the door to relationships with major credit card companies and their more attractive credit card offerings.
Frequently Asked Questions (FAQs)
Q1. What is the Indigo Platinum MasterCard?
The Indigo Platinum MasterCard is designed for individuals with less-than-ideal credit histories or those looking to establish credit for the first time. It is often considered an option when traditional credit cards are unavailable due to poor credit.
Q2. What are the key features of the Indigo credit card?
- Annual Fees: The card typically comes with an annual fee, which can vary based on your creditworthiness, ranging from no fee to $99 or more.
- Interest Rates: As of the making of this video, the Indigo card has a high-interest rate of 23.9%, which is important to consider when managing your balance.
- Credit Limit: Your initial credit limit may be as low as $300 or more, depending on your credit history.
Q3. How can I check my eligibility for the Indigo Platinum MasterCard?
You can use the pre-qualification tool on the Indigo website to get an indication of your likelihood of approval. This tool asks for basic information but does not impact your credit score. If you receive a negative response, it’s a sign that you may want to explore other options.
Q4. Will applying for the Indigo card hurt my credit score?
The pre-qualification tool does not affect your credit score, as it is considered a “soft pull.” However, if you proceed with a full application, it will result in a “hard pull,” which may have a minor impact on your credit score. If you’ve received a positive indication from the pre-qualification tool, you’re more likely to be approved.
Q5. Is the Indigo Platinum MasterCard a good way to rebuild or establish credit?
While the Indigo card reports your payment activity to the major credit bureaus, it’s not the most cost-effective option due to its high fees and interest rates. We recommend considering secured credit cards as a better alternative. These cards require a security deposit but often provide a clearer path to improving your credit score and may eventually transition to unsecured cards with responsible use.
Q6. Who offers the Indigo Platinum MasterCard?
The Indigo card is offered by Genesis Card Services, often in collaboration with Celtic Bank. Genesis specializes in providing credit solutions for individuals with credit challenges.