Indigo Credit Card Review: for Those With Bad Credit
Individuals who would like to have the financial flexibility of using a credit card for payments but have either a poor credit record or little or no credit history need a different set of card options for their unique situations.
These options may include unsecured cards with a standalone line of credit or a secured card with a deposit account requirement with a balance requirement equivalent to their credit line.
These cards can be a good fit for someone right out of college or trying to rebuild their credit. Maintaining a good credit history is also important to qualify for better rates on mortgages or personal loans, plus employers and landlords may request credit history as part of their job or rental application review.
Although the pricing on these accounts can be high because of the risks associated with the poor or lack of credit history, these cards offer customers who make timely payments and manage their accounts well, the chance to improve their credit scores and ultimately build a better credit record to qualify for a lower interest rate and lower fees with traditional credit cards in the future.
In this Indigo credit card review, we look at the Indigo Platinum Mastercard unsecured product and compare it to three other cards offered to credit challenged applicants.
What Is the Indigo Platinum Mastercard Credit Card?
The Indigo Platinum Mastercard is an unsecured credit card product offered by Celtic Bank (founded in 2001) of Salt Lake City, Utah. The card is serviced by Genesis FS Card Services.
This is an unsecured credit card, meaning the issuing bank is establishing a standalone line of credit for the customer, with no associated deposit account or balance requirement to secure the line of credit and provide protection against loss for the issuing bank.
As a Mastercard affiliated product, the card enjoys widespread acceptance for purchase activity at over 33 million locations in 210 countries.
Indigo Credit Card Review
Our goal is to review the key attributes of the Indigo Platinum Mastercard, including key product functionality and benefits, pricing, including fees and interest rates, and then move on to a direct comparison of the Indigo card versus three competing cards with offers also positioned to this segment of the market.
This will help us to assess how it fares in terms of the best value for customers who need to establish or rebuild their credit history.
Product Specifications
No security deposit is required, as this is an unsecured card. The Indigo card typically offers a $300 credit limit, with no credit line increase program. Customers can manage their accounts online 24/7 through their mobile phone, desktop or tablet computers through www.myindigocard.com.
Online functionality includes the ability to view your statement, pay your bill, monitor account activity, view transactions and check your balance. Customers can also activate the new card online prior to first use. Paperless statements are also available.
Cash advances from the Indigo card credit line are available at many financial institutions. Once approved, the customer can call for a Personal Identification Number to withdraw funds from many ATMs.
As a Mastercard affiliated product, the Indigo card also offers several Mastercard Platinum card benefits, including Master Rental Insurance, Extended Warranty Coverage, Master Road Assist Service or Travel Assistance Services. A complete guide to these and other benefits is sent to all new clients after their new account has been set up.
Indigo also wants to serve as a credit resource for customers to encourage the responsible use of credit, and so has posted a Credit Terminology link on its website to help clients understand credit terms, such as Annual Percentage Yield, Bankruptcy, Credit Reporting, Debt to Income Ratio, Grace Period and others.
In addition, there is a Frequently Asked Questions list to help prospects understand how the card works.
Pricing
The Indigo card carries an annual fee from between $0 and $99 depending on the applicant’s credit history. The Annual Percentage Yield is 23.9%. The card is traveler friendly with a low foreign transaction fee of 1%.
Indigo cautions that foreign purchases may be declined unless the customer notifies the bank before their planned travel activity. Customers can set up a travel alert by calling 1 866 946-9545
How It Compares
For this Indigo credit card review, we look at the specifics of the Indigo Platinum Mastercard against three competing card products, the First Premier Bank Mastercard Credit Card, Credit One Bank VISA credit card, and Total Visa Credit Card.
Indigo Platinum Mastercard Credit Card
Fees |
Ease of Applying |
Interest Rate and Penalties |
Response Time |
Customer Service |
|---|---|---|---|---|
$$ |
Fees
The annual fee ranges from $0 to $99 depending on the applicant’s credit score, but there is no additional program fee or monthly fee as charged by several competitors highlighted below in the Indigo credit card review.
In addition, for travelers, the Indigo fee for foreign transactions is a reasonable 1%.
Ease of Applying
Indigo offers a pre-qualification process on its website that will give a 60-second response on the likelihood of credit approval.
Applications may only be done online, not by phone. This pre-qualification is available for any applicant 18 or older (19 in Alabama) and who has not submitted a request in the past 60 days.
This pre-qualification has no impact on the applicant’s credit report. Thereafter, the client will need to submit a full application.
Interest Rate and Penalties
Although charging higher interest rates than their traditional card counterparts (around 23.9%), the Indigo card rates compared favorably with the competitors detailed below in the Indigo credit card review, and are not out of line for an unsecured card serving a clientele with low credit scores.
The late payment fee of up to $39 is on par with the other three competitor cards discussed below as part of this Indigo credit card review.
Response Time
The pre-qualification process offers applicants the ability to get a quick assessment within minutes of their likelihood of being approved for the Indigo card. Thereafter, a full application must be submitted, and approved clients will receive their card within 14 business days.
Customer Service
A majority of customer reviews on Wallet Hub gave low scores to customer service, from card receipt followup to other servicing issues. They viewed staff service levels as lacking.
Pros
Cons
First Premier Bank Mastercard Credit Card
Ease of Applying |
Interest Rate and Penalties |
Response Time |
Customer Service |
|---|---|---|---|
The first competitor card we will look at in our Indigo credit card review is the First Premier Bank Mastercard offered by First Premier Bank of Sioux Falls, South Dakota. First Premier, established in 1929, is one of the top 20 Mastercard card issuers in the country.
Credit limits range from $300-$1,000, so higher limits are available than with the Indigo card. In addition to an annual fee of $75 the first year and a range of $45-$49 in subsequent years, there is a one-time program fee that ranges from $25 to $95, making the fees more costly than with the Indigo card.
Plus, there is a monthly fee after the first year that ranges from $6.25-$10.40 each month. On top of this, there is a $29 fee for an additional card.
Ease of Applying
Prospects can apply for a First Premier Mastercard either online or by phone.
Interest Rate and Penalties
The Annual Percentage Yield is 36%, making it much more expensive for customers than the Indigo card if they carry balances each month and pay interest on these balances.
Response Time
First Premier says it gives a quick response in 60 seconds online. If not immediately approved, the applicant must wait 7-10 business days for the application to be processed and then will be notified by mail of the decision.
Customer Service
First Premier offers a good range of customer service hours 7 days a week.
Pros
Cons
Credit One Bank Credit Card
Ease of Applying |
Interest Rate and Penalties |
Response Time |
Customer Service |
|---|---|---|---|
The second competitor card we considered in the Indigo credit card review is Credit One Bank‘s credit card. The annual fee ranges from $0 to $75 the first year and $0-$99 in subsequent years.
Ease of Applying
An applicant can apply online for a pre-qualification.
Interest Rate and Penalties
Competitive Annual Percentage Yield ranging from 20.24% to 26.24%, plus late payment fee
Response Time
Credit One provides for a pre-qualification up front, but then customers must complete the full application process if pre-qualified.
Customer Service
Credit One offers a good range if customer service hours 7 days a week.
Pros
Cons
Total Visa Credit Card
Ease of Applying |
Interest Rate and Penalties |
Response Time |
Customer Service |
|---|---|---|---|
The third competitor card we looked at in the Indigo credit card review is the Total Visa card offered by the Bank of Missouri.
The fees add up here, as in addition to an annual fee of $75 the first year and $48 thereafter, there is an $89 onetime program fee, plus a monthly fee of $6.25 in year two and beyond.
Ease of Applying
Fast response with the online application process
Interest Rate and Penalties
Expensive with an Annual Percentage Rate of 34.99% plus late payment fee up to $39.
Response Time
Average response time on completed applications
Customer Service
Total Bank offers standard customer service support by telephone.
Pros
Cons
Conclusion of the Indigo Credit Card Review
The Indigo card, though more expensive than its traditional unsecured counterparts, compares very favorably in terms of its pricing against each of the three competitor cards reviewed above.
Image via Flaticon
The Indigo Platinum Mastercard credit card serves a distinct need for prospective card customers who could not get a traditional credit card because of their poor or insufficient credit history.
The Annual Percentage Yield is lower, and the absence of any program fee or monthly fee helps set the Indigo card apart as more affordable for the individual who needs this type of card to re-establish or create a good credit record.
The application process is on par with the competition, and only some negative comments about customer service responsiveness created some poor feedback on the card management process.
For those individuals with less than perfect credit, the Indigo Platinum Mastercard is a reasonable choice, a means to an end, to improve one’s credit situation.
Although reviewers cited inadequate customer service support, we rate the card 2.5 stars as helping clients manage their credit record in a positive direction with relatively competitive associated fees and rates.
Featured Image via Pixabay
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