Indigo might be the right credit card for you if you have bad credit. This card has a low credit limit, and a low annual fee. It also offers some benefits to people with bad credit. Before you sign up, be aware of its downsides.
Prequalification
If you are looking for a new credit card, Indigo's Fast Prequalification service is a great option for people with bad credit. This service uses a soft credit check to determine your eligibility. Indigo might not allow you to apply for credit cards if your credit score falls below 650.
Even though the Indigo card is intended for irresponsible shoppers, you might not be able use it for everyday purchases. However, prequalification is simple and fast online. While your application for the card is submitted, a soft inquiry to your credit file will be made. This inquiry won't affect your score.
Annual fee
The annual fee for Indigo credit cards ranges from $0 to $99 depending on your credit score. This card is best suited for you if your credit rating is excellent and you have never missed a payment. Be aware, however, that the annual fee can reduce your spending power and increase credit utilization.
If you are looking to improve your credit score, you should avoid the Indigo card. This is not a credit-card that the community recommends, but it might improve your credit rating. Although it is not reported to credit agencies, regular payments will be sufficient to show that you are financially responsible. The application process requires you to fill out general financial information and verify it.
Overdraft protection
The Indigo credit card is a great choice if you are looking for an easy-to use credit card with low annual fees. Although this card comes with a $300 credit limit and an annual fee, it can quickly add up to that amount. However, the card does report your credit activity to the three major credit bureaus, which can help you improve your credit score.
Overdraft protection allows you to borrow as much as ten percent from your credit limit on the Indigo card. Overdraft protection costs $40 and you will also have to pay a 1% foreign transaction charge. A 5% cash advance fee is included on the card. A monthly payment is made to the three credit agencies. The payments are usually reported within a few working days.
Foreign transaction fee
The Indigo credit cards have a one percent foreign transaction charge. This fee is lower than the usual three percent fee. There is also an annual fee that varies depending upon your credit score. The first year's annual fee is $75 and $99 each subsequent years. Although it's not clear whether the annual fee will change depending on your credit score or not, it is much higher than the average annual credit card fee.
The Indigo mastercard has a $300 credit limit and does not require an initial deposit. You can only increase your credit limit once. The card allows customers to control their spending habits and manage their credit scores. It reports to the three major credit bureaus and uploads payment records every month.
Late payment fee
Late payment fees on Indigo credit cards can be as high at $40 if you are late with your payments. The standard fees for the indigo cards are however included. In addition to a $35 late payment fee, there are also annual fees and foreign transaction fees. The first year fee costs $75. Each year, $99 is added. These fees may be based on your credit score, or not.
Fixed interest rate (APR), one of the great benefits of the Indigo Credit Card, is another. You won't lose your credit score if you make late payments. This card is more affordable than other unsecured credit cards. Numerous applicants have been approved with low credit scores of 600s and below. However, applicants with poor credit will pay more in interest and fees than those who have good credit.