The Indigo Mastercard Credit Card offers a unique opportunity for individuals aiming to establish or repair their credit history.
Tailored for those with less-than-perfect credit, this card provides a straightforward application process and accessible approval criteria. It reports to all three major credit bureaus, helping users demonstrate responsible credit behavior over time.
Whether you’re starting fresh or recovering from past financial challenges, the Indigo Mastercard Credit Card serves as a stepping stone toward better financial health. Read on to discover everything you need to know about the application for this card!
How the Credit Card Works
The Indigo Mastercard Credit Card functions as an unsecured credit card, meaning you don’t need to provide a security deposit to get approved. This makes it more accessible for individuals who might not have funds for a deposit.
Cardholders can use it for purchases wherever Mastercard is accepted. A key feature is its commitment to credit building; Indigo reports your monthly payment activity to all three major credit bureaus (Equifax, Experian, and TransUnion).
This card is primarily for individuals with less-than-perfect credit or those looking to establish a credit history. Applicants often have a challenging credit background and are seeking a tool to improve their financial standing.
The application process is straightforward, and you can often see if you pre-qualify without impacting your credit score if you’re not ultimately approved.
What are the main advantages of Indigo Mastercard Credit Card?
The Indigo Mastercard Credit Card offers several key benefits, particularly for those looking to improve their creditworthiness. Here are 5 main advantages:
- Accessible to Those with Imperfect Credit: The card is for individuals who have a less-than-perfect credit history or are new to credit. This focus makes it a viable option when other lenders might decline an application.
- Builds Your Credit History: Indigo reports your payment activity to all three major credit bureaus. Consistent, on-time payments can positively impact your credit score over time, helping you build a stronger financial future.
- No Security Deposit Needed: Unlike secured credit cards that require an upfront cash deposit, the Indigo Mastercard is more accessible for individuals who may not have the funds for a deposit but still need a credit-building tool.
- Pre-qualification Option: You can often check if you pre-qualify for the Indigo Mastercard without a hard inquiry on your credit report.
- Wide Acceptance: As a Mastercard, it is accepted at millions of locations worldwide, both online and in-store. This provides convenience for everyday purchases and transactions.
Disadvantages
While the Indigo Mastercard Credit Card offers a path to credit building, it’s important to be aware of potential drawbacks. Consider these factors before applying:
- High Fees: The card can come with significant fees, including an annual fee that may range from $0 up to $199, depending on your creditworthiness. Other fees for late payments or cash advances can also apply.
- High APR: The Annual Percentage Rate (APR) on this card is typically high. Carrying a balance from month to month can result in substantial interest charges, making it costly if not paid in full.
- Low Credit Limit: Initial credit limits are often low, which is common for cards aimed at credit building. This might restrict your purchasing power and can affect your credit utilization ratio if you’re not careful.
- Potential Customer Service Issues: Some users have reported experiencing challenges with customer service, which could be a concern if you need assistance with your account.
Rates and Commissions of Indigo Mastercard
Understanding the costs associated with the Indigo Mastercard Credit Card is crucial. Users should be aware of the following interest rates and fees:
- Annual Percentage Rate (APR): Both purchases and cash advances are subject to a high APR of 35.9%. Interest on purchases can be avoided by paying the entire balance by the due date each month.
- Annual Fee: There’s an annual fee of $175 for the first year, which then reduces to $49 for subsequent years.
- Monthly Fee: While there’s no monthly fee for the first year, a fee of $12.50 per month ($150 annually) applies thereafter.
- Cash Advance Fee: Taking a cash advance incurs a fee of $5 or 5% of the transaction amount (whichever is greater, capped at $100). Interest on cash advances starts accruing from the transaction date.
- Foreign Transaction Fee: A fee of 1% of each transaction amount in U.S. dollars applies to purchases made outside the United States.
- Penalty Fees: Late payments, exceeding your credit limit, and returned payments can each incur a penalty fee of up to $41.
- Minimum Interest Charge: If interest is charged, it will be at least $1.00.
Requirements and eligibility criteria
The Indigo Mastercard Credit Card is mainly for individuals looking to establish or rebuild their credit. If you want to apply, there are several criteria you’ll need to meet.
Primarily, applicants must be at least 18 years of age. You will also need to provide a valid Social Security Number, have a physical U.S. address (not a P.O. Box), and be applying from a U.S. IP address.
It’s also important that you have not previously held an Indigo Mastercard account that was in delinquency.
Beyond these initial requirements, applicants must also meet additional credit qualification criteria. This typically involves a review of your income and existing debt to assess your ability to manage credit, as well as satisfying identity verification requirements.
How to get an Indigo Mastercard Credit Card
- Application Process: You can typically apply for an Indigo Mastercard online through their official website. You just need to fill out an application form with your information.
- Tips for Approval: To increase your chances, ensure all information provided is accurate and up-to-date. Having a steady income and managing existing debts responsibly can positively impact your application, even with less-than-perfect credit.
- Receiving Your Card: If approved, you can generally expect to receive your Indigo Mastercard by mail within 7-10 business days. Sometimes, it might occasionally take up to 14 days.
- In Case of Rejection: Should your application be denied, the issuer will provide an adverse action notice explaining the reasons. Review this carefully and consider addressing the issues, such as improving your credit score, before considering a reapplication.
Conclusion
The Indigo Mastercard Credit Card presents a viable option for individuals seeking to build or rebuild their credit history. While it serves as a useful tool for establishing responsible credit behavior, it’s crucial to manage the card wisely by making on-time payments and, ideally, paying the balance in full each month to avoid costly interest charges.
The card is best for those who understand these costs and want to use it as a stepping stone toward better financial health. For those interested in applying, you can visit the official Indigo website by clicking here.
