Indigo^® Mastercard^® for Less than Perfect Credit Review

The Indigo^® Mastercard^® for Less than Perfect Credit makes credit accessible if you have limited or poor credit. However, its annual fee will cost you money each year, even when you don’t carry a balance or incur other fees. The annual fee ranges from $175 - $199 per year, based on your creditworthiness.

We suggest comparing the Indigo^® Mastercard^® for Less than Perfect Credit to fee-free secured credit cards and saving up a security deposit so you can build up your credit score without draining your bank account.

• Get up to a $700 credit limit with no security deposit

  Security deposits are often required for credit cards for bad credit, but the Indigo^® Mastercard^® for Less than Perfect Credit doesn’t require one. It’s possible to get a credit limit up to $700 with no deposit.

  Note that your annual fee, if one is assessed, is added to your credit card statement when you open the account. This will lessen the amount of credit available for your first month. In other words, if you have a $175 annual fee and a credit limit of $700, you’ll have an actual credit limit of $525.

• Reports to three major credit bureaus

  The Indigo^® Mastercard^® for Less than Perfect Credit reports to the three major credit bureaus: Equifax, Experian and Transunion. This is a key feature for building credit with a credit card. When you apply for another type of credit — like an auto loan or personal loan — the prospective lender will see your payment history, no matter which credit bureau they pull your credit report from.

• Comes with a high annual fee

  The annual fee for the Indigo^® Mastercard^® for Less than Perfect Credit is based on your creditworthiness and ranges from $175 - $199.

• No sign-up bonus or rewards program

  Sign-up bonuses and rewards programs sweeten credit card offers, especially when there’s an annual fee involved. However, the Indigo^® Mastercard^® for Less than Perfect Credit doesn’t offer a bonus or rewards. This could be a positive because you won’t be tempted to overspend to earn rewards. However, if you’re a responsible card user looking to earn rewards, this is a drawback.

  If rewards are an important factor for you, you can find cards for applicants with low credit scores that offer cash back programs.

• High APR

  Like many cards geared toward consumers building credit, the Indigo^® Mastercard^® for Less than Perfect Credit has a high APR of 35.9%. However, by using your card responsibly it’s possible to avoid this altogether.

Indigo^® Mastercard^® for Less than Perfect Credit vs. Discover it^® Secured Credit Card

 
One of the best credit cards for bad credit, the Discover it^® Secured Credit Card requires a security deposit of $200. But unlike the fees, its deposit can be refunded. It has a $0 annual fee, which gives it an advantage over the Indigo^® Mastercard^® for Less than Perfect Credit and is helpful in keeping fees at a minimum.

As a Discover it^® Secured Credit Card cardholder, you earn cash back rewards while building credit, and you may qualify to upgrade to an unsecured card in less than a year. If you can afford to put down the deposit, the Discover it^® Secured Credit Card will save you money over the long term due to no annual fee.

Indigo^® Mastercard^® for Less than Perfect Credit vs. AvantCard Credit Card

As an unsecured credit card, the AvantCard Credit Card doesn’t require a security deposit. It does, however, charge a $59 annual fee which could be less than what some Indigo^® Mastercard^® for Less than Perfect Credit users pay. This is a fee that you’ll pay year after year and is not refundable.

The AvantCard Credit Card offers credit lines starting at $300 and can go as high as $3,000, which is nice if you’d like the ability to make larger purchases. However, remember to pay your balance as soon as possible to keep your credit utilization ratio low. Accounts are periodically reviewed for credit limit increases, but you can also request them through the mobile app.

Indigo^® Mastercard^® for Less than Perfect Credit vs. OpenSky^® Secured Visa^® Credit Card

A highlight of the OpenSky^® Secured Visa^® Credit Card is that it doesn’t do a credit check and only requires a $35 annual fee and a minimum $200 security deposit. If you’d like a larger line of credit, subject to approval, you can deposit up to $3,000.

Also, unlike the Indigo^® Mastercard^® for Less than Perfect Credit, the OpenSky^® Secured Visa^® Credit Card may let you graduate to an unsecured card in as little as six months.

Unless you cannot get approval from another credit card, we suggest comparing your options before applying for the Indigo^® Mastercard^® for Less than Perfect Credit. You can find better cards for bad credit that offer no annual fee and rewards programs, while still assisting you in building credit.

Consider the Discover it^® Secured Credit Card as one of the best secured credit cards. It comes with a $0 annual fee, so you won’t have to pay to carry the card. Its refundable security deposit is a better deal because you’ll get it back when you close your account or graduate to an unsecured card.