What the Indigo Card is and who it's for

The Indigo Card is a secured credit card issued by Indigo Credit, a subsidiary of WebBank. You put down a cash deposit — typically between $250 and $2,500 — and that deposit becomes your credit limit. You then use the card like any other credit card, paying a monthly bill. The card reports to all three credit bureaus, so on-time payments build your credit history.

This card is built for people rebuilding credit after missed payments, collections, or a long gap in credit activity. It's not the only secured card available, but it's one of the most widely used. The trade-off is that you pay an annual fee (currently $95) and a higher interest rate than you'd get with an unsecured card — but that's standard for secured cards across the industry.

Key Takeaways

  • You need a deposit of $250 to $2,500, which becomes your credit limit and stays in a separate account while you use the card.
  • The annual fee is $95, charged to your account in the first month and each year after that.
  • You can request a credit limit increase after six months of on-time payments, and your deposit may be returned once you graduate to an unsecured card.
  • The process takes about 10 minutes online, and you'll know whether you're approved or denied within minutes.
  • You must have a U.S. bank account and a Social Security number to open the card.

What you need before you start

Gather these items before you begin the online process: a valid government-issued ID (driver's license, passport, or state ID), your Social Security number, and proof of a current U.S. bank account (checking or savings). You'll also need to decide how much you want to deposit — the minimum is $250, and the maximum is $2,500.

You don't need perfect credit or any credit history at all to open an Indigo Card. The company does a soft pull on your credit report during the process, which doesn't lower your credit score. However, they do check ChexSystems, a banking history database, so if you have a history of unpaid bank fees or fraud, you may be denied.

The step-by-step process process

Go to the Indigo Card website and click "explore Now." You'll enter your personal information: name, address, date of birth, Social Security number, and employment status. The form takes about 10 minutes. You don't need to be employed, but you do need to provide an annual income figure — this can include unemployment benefits, disability payments, or other regular income.

After you submit, you'll see a decision on screen within minutes. If you're approved, you'll be asked to choose your deposit amount and link your bank account. The deposit is transferred electronically, usually within one to three business days. Once the deposit clears, your card is activated and ships to your address within 7 to 10 business days.

If you're denied, the decision letter will explain why. Common reasons include a ChexSystems issue, an address mismatch, or an income that's too low for the deposit amount you chose. You can reapply after addressing the issue, or you can contact Indigo's customer service to ask whether you can appeal.

Fees and interest rates you'll pay

The annual fee of $95 is charged in your first month and every 12 months after that. This fee is deducted from your available credit, so if you deposit $250, your usable credit limit drops to $155 after the fee is applied. The interest rate (APR) varies but typically ranges from 18% to 24%, depending on your creditworthiness at the time of process.

There are no foreign transaction fees, no late fees beyond standard credit card penalties, and no penalty APR if you miss a payment — you just pay the regular APR on your balance. However, if your payment is 60 days late, Indigo may close your account and charge off the balance, which damages your credit score significantly.

How to use the card to build credit

The goal of a secured card is to prove you can handle credit responsibly. Use the card for small, regular purchases — groceries, gas, a subscription — and pay the full balance every month. This shows lenders that you can manage debt without carrying a balance or missing payments.

After six months of on-time payments, you can request a credit limit increase. Indigo may increase your limit without asking for an additional deposit, or they may ask you to add more money to your deposit account. After 12 to 18 months of consistent on-time payments, you may be offered a transition to an unsecured card, at which point your deposit is returned to you.

Check your credit report regularly using AnnualCreditReport.com (the only free, federally authorized source). Make sure Indigo is reporting your payments correctly. If there's an error, dispute it with the credit bureau in writing.

When Indigo might not be the right choice

If you have access to a traditional credit card with a lower annual fee or better terms, that's usually a better option. Some credit unions offer secured cards with no annual fee or lower fees, so check with your bank or credit union first.

If you're trying to rebuild credit after a recent bankruptcy or foreclosure, a secured card is a solid tool — but it's not a shortcut. Credit repair takes time. Indigo won't hurt your chances, but it won't speed up the process beyond what on-time payments naturally do.

If you can't afford to put down a deposit right now, or if you're not ready to commit to on-time payments, wait. Opening a card you can't manage will damage your credit further, not help it.

Frequently Asked Questions

Can I get the Indigo Card if I have no credit history?

Yes. Indigo doesn't require you to have an existing credit history. They do check ChexSystems and your income, but a blank credit file won't disqualify you. Your first credit card is often a secured card for this reason.

What happens to my deposit if I close the card?

Your deposit is returned to your bank account, usually within 5 to 7 business days after the account is closed. Any remaining balance on the card must be paid off first. If you close the card early, you still owe the annual fee for that year.

Can I increase my credit limit without adding more money?

After six months of on-time payments, you can request an increase. Indigo may grant it without requiring an additional deposit, but they're not obligated to. If they do require more money, you can add it to your deposit account or decline the increase.

How long does it take to graduate to an unsecured card?

Most cardholders graduate after 12 to 18 months of on-time payments. Indigo will contact you when you're may be able to access. The timeline depends on your payment history and credit score improvement, not on a fixed schedule.

Will explore for the Indigo Card hurt my credit score?

The initial process uses a soft pull, which doesn't affect your score. However, once you're approved and the account opens, it shows up as a new account on your credit report, which may lower your score slightly in the short term. Over time, on-time payments will raise it.