What the Indigo Card Actually Does
The Indigo Card is a secured credit card designed for people rebuilding credit or starting from scratch. You put down a cash deposit, usually between $250 and $2,500, and that deposit becomes your credit limit. You use the card like any other — swipe it, pay the bill monthly — and the issuer reports your payment history to the three credit bureaus. The deposit stays in a separate account and is not touched unless you stop paying or close the account.
Whether it is a good choice depends on what you need it for and what you are willing to pay. The card charges an annual fee (currently $95), a monthly maintenance fee ($4.95), and a one-time processing fee ($89 to $99). Those fees are higher than most secured cards. The interest rate is also high — typically 18.9% APR or higher. But if you have no credit history or a damaged one, your options are limited, and Indigo may be one of the few cards that will approve you.
The card does report to all three bureaus, which means your on-time payments actually build your credit file. After 7 to 12 months of on-time payments, you may be offered a path to an unsecured card, at which point you get your deposit back. That is the real value: a way in, not a permanent solution.
Key Takeaways
- Indigo charges $95 annually plus $4.95 monthly plus an upfront processing fee, making it more expensive than competing secured cards.
- The card reports to all three credit bureaus, so on-time payments do build your credit score if you pay the full balance or at least make the minimum on time.
- Your cash deposit ($250 to $2,500) is held separately and returned when you close the account or graduate to an unsecured card, not spent on fees.
- Interest charges apply only to balances you carry month to month; paying in full each month avoids the 18.9%+ APR entirely.
- The card is most useful as a short-term tool (6 to 12 months) to rebuild credit, not as a long-term primary card.
How the Fees Work and What They Cost You
The Indigo Card charges three separate fees upfront and ongoing. The processing fee is $89 to $99 and is deducted from your deposit when you open the account. So if you deposit $500, you actually have $401 to $411 in available credit. The annual fee is $95, charged once per year on your account anniversary. The monthly maintenance fee is $4.95, charged every month regardless of whether you use the card.
Over one year, the monthly maintenance fee alone costs $59.40. Add the annual fee and you are at $154.40 in yearly charges before you buy anything. If you also paid the processing fee, your first year costs $243 to $253 just to hold the card. Compare this to the Capital One Secured Mastercard, which has no annual fee and no monthly fee, only a processing fee of $25 to $75. The difference is significant if you are on a tight budget.
The monthly maintenance fee is the most frustrating part because it charges whether you use the card or not. If you open the card and then do not use it for a month, you still owe $4.95. This is unusual among secured cards and makes Indigo more expensive the less you use it.
When Interest Charges Kick In and How They Add Up
Indigo charges interest at 18.9% APR or higher on any balance you carry past the due date. That rate applies to purchases, not just cash advances. If you charge $500 and pay only the minimum (usually 1% to 3% of the balance), the remaining $485 to $495 will accrue interest at 18.9% per year.
The math is straightforward: $500 balance × 18.9% ÷ 12 months = $7.88 in interest charges in the first month alone. If you carry that $500 for a full year without paying it down, you will pay roughly $94 in interest. That is almost the cost of the annual fee on top of it. The only way to avoid this is to pay your full statement balance by the due date every month.
For someone rebuilding credit, carrying a balance is tempting because it shows "active" use. But it is a trap. Your credit score improves from on-time payments and low utilization (using a small percentage of your limit), not from carrying debt. Paying in full each month costs you nothing in interest and builds your score faster.
How Indigo Compares to Other Secured Cards
The secured card market has several options, and Indigo is not the cheapest. Here is how the main competitors stack up on fees and structure:
| Card | Annual Fee | Monthly Fee | Processing Fee | APR |
|---|---|---|---|---|
| Indigo | $95 | $4.95 | $89–$99 | 18.9%+ |
| Capital One Secured | $0 | $0 | $25–$75 | 18.9%–26.9% |
| Discover Secured | $0 | $0 | $0 | 18.9%–24.9% |
| OpenSky | $35 | $0 | $0 | 18.9%–21.9% |
Indigo is the most expensive option on an annual basis. Capital One Secured has no monthly fee and no annual fee, only a processing fee. Discover Secured has no fees at all. OpenSky has a $35 annual fee but no monthly fee. If your only goal is to rebuild credit with the lowest cost, Discover or Capital One are better choices. Indigo makes sense only if you cannot be approved for those cards and need an alternative.
Whether Indigo Actually Helps You Build Credit
Indigo does report to all three credit bureaus — Equifax, Experian, and TransUnion — which means your payment history will show up on your credit report. That is the core mechanism for building credit. Each on-time payment is recorded and contributes to your payment history, which is the largest factor in your credit score (about 35% of the total).
However, Indigo will only help your score if you make payments on time and keep your balance low. If you miss a payment, Indigo reports that too, and it damages your score. If you max out your deposit limit and carry a high balance, your credit utilization ratio goes up, which lowers your score. The card itself is neutral; what matters is how you use it.
Most people see their score improve by 50 to 100 points within 6 to 12 months of on-time payments on a secured card. After that, you become a candidate for an unsecured card. At that point, you should apply for something with no annual fee and lower interest rates, and you can close Indigo and get your deposit back. Indigo is a stepping stone, not a destination.
Red Flags and Common Complaints
Indigo has a history of complaints about the monthly maintenance fee and the high upfront costs. The Consumer Financial Protection Bureau and the Better Business Bureau have received complaints from cardholders who felt the fees were not clearly disclosed or who were surprised by the monthly charge. Some people opened the card, did not use it, and were frustrated to see $4.95 charged every month.
Another complaint is about the path to graduation. Indigo does not have a clear timeline or published criteria for when you will be offered an unsecured card. Some cardholders report waiting 12 to 18 months with perfect payment history and still not receiving an offer. Others receive an offer within 7 months. The lack of transparency is frustrating if you are counting on that upgrade to recover your deposit.
A third issue is that Indigo is owned by Bridgeport Financial, a company that has faced regulatory scrutiny in the past. While the card itself is legitimate and FDIC-insured, some consumers prefer to avoid the company on principle. That is a personal choice, but it is worth knowing.
Who Should and Should Not Get This Card
Indigo makes sense if you have no credit history or severely damaged credit and cannot be approved for Capital One Secured or Discover Secured. If you have been denied for those cards, Indigo may approve you. It also makes sense if you are willing to pay the fees in exchange for a may provide path to credit building and you plan to use the card actively (so the monthly fee does not feel wasted).
Indigo does not make sense if you have any other option. If you can be approved for Discover Secured (which has no fees), that is a better choice. If you can be approved for Capital One Secured, that is also better. If you have fair credit and can get an unsecured card with a low APR, skip the secured card entirely. Indigo is a last resort, not a first choice.
Do not get Indigo if you are not committed to paying on time every month. The fees and interest will work against you if you miss payments or carry a balance. Do not get it if you are not planning to use it; the monthly fee will drain your deposit without building credit. And do not get it if you are looking for a long-term card; plan to graduate within 12 months and move on.
Frequently Asked Questions
Can I get my deposit back if I close the card early?
Yes, but you will still owe any outstanding balance and any fees charged up to the closing date. If you close the card after three months, you will have paid $14.85 in monthly fees plus the annual fee (prorated) plus the processing fee. Your deposit is returned only after all balances and fees are settled. Check your account terms for the exact process.
Does Indigo report to all three credit bureaus?
Yes, Indigo reports to Equifax, Experian, and TransUnion. That means your payment history shows up on all three of your credit reports, which is important because lenders pull from different bureaus. Having the same positive history on all three helps your score more than reporting to just one.
What happens if I miss a payment?
A missed payment is reported to all three bureaus and will lower your credit score. Indigo may also charge a late fee (typically $25 to $35) and increase your interest rate. If you miss a payment by more than 30 days, Indigo may freeze your account or reduce your credit limit. Contact Indigo immediately if you cannot pay on time.
How long until I can upgrade to an unsecured card?
Indigo does not publish a specific timeline, but most cardholders report receiving an upgrade offer between 7 and 18 months of on-time payments. There is no may provide, and the timeline depends on your credit history and how you use the card. When you receive an offer, you can request your deposit back and close the secured account.
Is there a way to avoid the monthly maintenance fee?
No. The $4.95 monthly maintenance fee is charged automatically and cannot be waived. It is part of the card's cost structure. If you want to avoid monthly fees, choose Capital One Secured, Discover Secured, or OpenSky instead.