The Indigo Card Is a Legitimate Credit Card, but It Targets People Rebuilding Credit

The Indigo Card is a real credit card issued by Marlette Bank, a federally chartered bank. It is not a scam. However, it is designed specifically for people with poor credit or no credit history, and the terms reflect that: you will pay an annual fee, a higher interest rate than mainstream cards, and you must put down a cash deposit to secure your credit line.

The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history will affect your credit score. That reporting is real and useful. The catch is that the card's fees and interest rate make it expensive to carry a balance, so it works best as a tool to build credit history while you pay off charges in full each month.

Indigo is owned by Marlette Bank, which also issues other credit-builder cards. The company has been operating since 2013 and holds a banking license from the Office of the Comptroller of the Currency. That does not mean the card is a good deal for you—it means it is a regulated financial product, not a fraudulent operation.

Key Takeaways

  • The Indigo Card is issued by Marlette Bank, a real federally chartered bank, and reports to all three credit bureaus.
  • You must deposit cash as collateral, and your credit line equals your deposit (usually $250 to $2,500).
  • The card charges an annual fee of $95 and a higher interest rate than cards for people with good credit, making it expensive if you carry a balance.
  • The card is useful for building credit history if you pay your bill in full each month, but not a long-term solution.

How the Indigo Card's Deposit and Credit Line Work

When you open an Indigo Card account, you place a cash deposit into a savings account held by the bank. That deposit becomes your credit limit. If you deposit $500, your credit line is $500. The deposit stays in the account and earns a small amount of interest (currently around 0.01% annual percentage yield, though this varies).

The deposit is not a fee—it is your own money, held as collateral. You can withdraw it, but if you do, your credit line shrinks by the same amount. The bank keeps the deposit in case you stop paying your bill; they use it to cover what you owe before reporting the account as delinquent.

This structure is why the card is called a "secured" credit card. It reduces the bank's risk, which is why they will issue it to people with credit scores below 600 or no credit history at all. The tradeoff is that you have to have the cash on hand to open the account.

Annual Fees and Interest Rates on the Indigo Card

The Indigo Card charges a $95 annual fee, charged to your account each year. This fee is not waived in the first year—you pay it immediately when you open the account. That means if you deposit $250 and spend nothing, you will owe $95 on your first bill.

The interest rate (APR) is typically between 18.9% and 24.9%, depending on your creditworthiness at the time you apply. This is higher than the average APR for mainstream credit cards, which sits around 16% to 18% for people with fair credit. If you carry a balance, interest accrues daily and compounds monthly, making the card expensive to use for ongoing debt.

The card also charges a late fee of up to $35 if you miss a payment, and a returned-payment fee of up to $35 if a check or electronic payment bounces. These fees are standard across the credit card industry, but they matter more on a card with a small credit line.

What Happens to Your Credit Score When You Use the Indigo Card

The Indigo Card reports your payment history to Equifax, Experian, and TransUnion every month. That means on-time payments build your credit score, and late payments damage it. This is the card's main value: it creates a record of responsible borrowing that other lenders can see.

Your credit utilization—the percentage of your credit line you are using—also affects your score. If your limit is $500 and you carry a $250 balance, your utilization is 50%. Credit scoring models reward lower utilization, so keeping your balance below 30% of your limit helps your score more than maxing out the card and paying it off.

The annual fee and high interest rate do not directly hurt your credit score, but they make it harder to use the card responsibly. If the $95 fee pushes you over your limit or causes you to miss a payment, that damage to your score will be real and lasting.

When the Indigo Card Makes Sense and When It Does Not

The Indigo Card is useful if you have no credit history or a damaged credit history and you need to build a record of on-time payments. If you can deposit $250 to $2,500, pay your bill in full every month, and keep your balance low, the card will help your credit score improve over 12 to 24 months. At that point, you can move to a mainstream card with no annual fee and a lower interest rate.

The card does not make sense if you cannot afford to pay your bill in full each month. The combination of the $95 annual fee and the 18.9% to 24.9% interest rate means you will pay a lot to carry a balance. If you are already struggling with debt, this card will make your situation worse, not better.

The card also does not make sense if you have other options. If you have a credit score above 600, you can usually get a mainstream secured card (like the Capital One Secured Mastercard or the Discover Secured Card) with no annual fee. If you have a score above 650, you may be able to get an unsecured card with a lower interest rate. Check what you actually may have access to for before you commit to the Indigo Card's fee.

How to Tell If an Indigo Card Offer Is a Scam

The Indigo Card itself is legitimate, but scammers use the card's name to trick people. If someone is offering you an Indigo Card through a website that is not indigo.com, or if they are asking you to pay a fee upfront before you open the account, that is a scam. The real Indigo Card charges its annual fee after you open the account, not before.

Scammers also sometimes pose as Indigo customer service and call or email asking for your Social Security number, PIN, or deposit information. Marlette Bank will never ask for this information by phone or email. If someone contacts you claiming to be from Indigo and asking for sensitive information, hang up or delete the email and call Indigo directly at the number on their official website.

Another red flag: if someone is promising that the Indigo Card will "fix" your credit or "remove" negative marks from your credit report, that is false. No credit card can remove accurate negative information from your credit history. Only time and responsible borrowing can improve your score.

How to Close an Indigo Card Account If You No Longer Need It

If you have built your credit and want to switch to a card with no annual fee, you can close your Indigo Card account at any time. Call the customer service number on the back of your card or log into your online account and request closure.

Before you close the account, make sure your balance is zero. Pay off any remaining charges and wait for the payment to post (usually one to three business days). Once your balance is zero, you can request closure. The bank will then return your deposit to the account you used to fund it, usually within 5 to 10 business days.

Closing the account will not hurt your credit score immediately, but it will affect your credit utilization ratio over time. If the Indigo Card is your only open account, closing it removes that account from your credit mix, which can cause a small temporary dip in your score. However, the account will remain on your credit report for up to 10 years, so the history of on-time payments will continue to help you.

Frequently Asked Questions

Can I get my deposit back if I close the card?

Yes. Once your balance is zero, you can request account closure and the bank will return your deposit to your original funding source within 5 to 10 business days. The deposit is your money—the bank holds it as collateral, not as a fee.

Will the Indigo Card help me get approved for other credit cards?

Yes, if you use it responsibly. Six to twelve months of on-time payments and low utilization will improve your credit score enough to may have access to for mainstream cards with no annual fee and lower interest rates. That is the card's intended purpose.

What happens if I miss a payment on the Indigo Card?

A late payment will be reported to the credit bureaus and will damage your credit score. You will also be charged a late fee of up to $35. If you miss a payment by 30 days or more, the bank may use your deposit to cover the debt and close your account.

Is the Indigo Card better than other secured cards?

Not necessarily. The Capital One Secured Mastercard and Discover Secured Card both have no annual fee, which makes them cheaper than Indigo. Compare the interest rates and fees of all three before you apply. Your credit score at the time of application will determine which cards you actually may have access to for.

Can I increase my credit limit on the Indigo Card?

Yes, by depositing more money into your collateral account. If you deposit an additional $250, your credit line increases by $250. Some cardholders are also offered the chance to convert to an unsecured card after 12 to 18 months of on-time payments, which removes the deposit requirement.