Indigo is designed for people rebuilding credit, but it comes with real costs you need to understand upfront

Indigo is a secured credit card issued by Bridgepoint Capital. You put down a cash deposit (usually $250 to $2,500), and that deposit becomes your credit limit. The card reports to all three credit bureaus, which means your payment history can help rebuild a credit score. But the card charges an annual fee of $95, and the interest rate is high — currently around 19.99% APR. Whether it makes sense for you depends on whether you're actually trying to build credit history, how much the annual fee costs relative to your situation, and what other options might be available.

Key Takeaways

  • Indigo requires a cash deposit that becomes your credit limit, so you need $250 to $2,500 available upfront.
  • The $95 annual fee is charged whether you use the card or not, which means you pay it even if you only carry the card for credit-building purposes.
  • The 19.99% APR means carrying a balance is expensive; if you charge $500 and pay it off over a year, interest alone will cost you roughly $50.
  • Indigo reports to all three credit bureaus, so on-time payments do build your credit history — but only if you actually pay on time every month.
  • Other secured cards exist with lower or no annual fees, so comparing options before you apply is worth the time.

How the deposit and credit limit work

When you open an Indigo account, you choose a deposit amount between $250 and $2,500. That deposit sits in a separate account and is not used to pay your bill — it is held as collateral. Your credit limit equals your deposit amount. So if you deposit $500, you get a $500 credit limit.

The deposit stays frozen for as long as you hold the card. You do not earn interest on it. If you close the account or Bridgepoint closes it, the deposit is returned to you, but that can take several weeks. The deposit itself is not a fee — it is your own money being held — but you need to have that cash available when you apply.

Annual fee and when it gets charged

Indigo charges a $95 annual fee. This fee is charged to your card every year, usually on your account anniversary (the date you opened the account). The fee is charged whether you use the card or not. If you only use the card once a year to keep it active, you still pay $95.

The annual fee is significant relative to the deposit. On a $250 deposit, the $95 fee represents 38% of your credit limit in the first year alone. On a $500 deposit, it is 19%. This matters because if you are carrying a small deposit, the fee eats into the benefit you get from the card. Some people use Indigo specifically for credit-building and never carry a balance; in that case, the fee is a pure cost with no interest charges on top of it.

Interest rate and what happens if you carry a balance

Indigo's APR is 19.99%. This is higher than most standard credit cards (which typically range from 15% to 25% depending on your creditworthiness), but it is in line with other secured cards aimed at people rebuilding credit. The rate applies to any balance you do not pay off in full by the due date.

The math matters here. If you charge $500 to the card and pay only the minimum payment each month, you will pay roughly $50 in interest over a year before the balance is gone. If you charge $1,000 and do the same, you pay roughly $100 in interest. The annual fee ($95) stacks on top of this. So if you are planning to carry a balance on Indigo, the total cost — fee plus interest — can add up quickly. Most people who use secured cards for credit-building pay off the full balance every month to avoid interest charges.

How Indigo reports to credit bureaus

Indigo reports your account activity to Equifax, Experian, and TransUnion — all three major credit bureaus. This means every on-time payment you make gets recorded on your credit report, and that payment history helps build your credit score over time. Late payments also get reported, and they hurt your score.

The reporting is the main reason people use Indigo: to create a positive payment history when they have little or no credit history, or when they are recovering from past missed payments or defaults. If you make every payment on time, you will see your score improve over months and years. But this only works if you actually pay on time. Missing even one payment defeats the purpose.

Comparing Indigo to other secured cards

Indigo is not the only secured card on the market. Other options include the Capital One Secured Mastercard (no annual fee, 19.99% APR), the Discover It Secured Card (no annual fee, variable APR), and the OpenSky Secured Visa Card (no annual fee, 19.99% APR). The main difference is that most competitors charge no annual fee, which makes them cheaper to use for credit-building purposes.

If your only goal is to build credit history, a no-fee secured card is usually the better choice because you save $95 per year. Indigo might make sense if you want the specific features it offers — for example, if you prefer Mastercard over Visa, or if you have been denied by other issuers. But before you apply for Indigo, check whether you would be approved for a no-fee alternative first. Many people can may have access to for those cards and do not realize it.

When Indigo might make sense for you

Indigo is worth considering if you have been denied for other secured cards and Indigo approves you. It is also reasonable if you specifically want a Mastercard and other no-fee Mastercards are not available to you. Some people also choose Indigo because they have had good experiences with Bridgepoint Capital's customer service, though this is individual.

Indigo does not make sense if you are looking for the cheapest way to build credit — a no-fee secured card is cheaper. It also does not make sense if you plan to carry a balance regularly, because the 19.99% APR plus the $95 annual fee makes the card expensive to use. And it does not make sense if you do not actually need a secured card — if you have fair credit or better, you may be approved for a standard card with no deposit and no annual fee.

What happens after you build credit

Indigo does not automatically graduate to an unsecured card. You can request a review after six months of on-time payments, and Bridgepoint may return your deposit and convert the account to an unsecured Indigo card with no deposit required. But this is not may provide, and you have to ask for it. Some people keep the secured Indigo card open even after their credit improves, because closing it would lower their average account age and hurt their score slightly. Others close it and move to a different card with better rewards or lower fees.

Frequently Asked Questions

Does Indigo report to credit bureaus right away?

Indigo reports to all three bureaus, but the first report usually happens 30 to 45 days after you open the account. Your first payment will show up on your credit report about a month after you make it. Credit-building takes time; you will not see score improvements overnight.

What if I miss a payment on Indigo?

A missed payment is reported to all three credit bureaus and will hurt your score. Bridgepoint may also charge a late fee (typically $25 to $35) and increase your interest rate. If you miss a payment, contact Bridgepoint immediately to bring the account current and ask whether they will waive the late fee.

Can I get my deposit back before closing the account?

No. Your deposit is held as collateral for the life of the account. You can only get it back by closing the account or by requesting a conversion to an unsecured card (if Bridgepoint approves). Once the account is closed or converted, the deposit is returned, usually within two to three weeks.

Is there a better secured card if I have no credit history?

Several no-fee secured cards exist and may work for you. The Capital One Secured Mastercard, Discover It Secured Card, and OpenSky Secured Visa Card all have zero annual fees and report to the three bureaus. Start by checking whether you would be approved for one of those before paying Indigo's $95 fee.

What credit score do I need to get Indigo?

Indigo does not publish a minimum credit score requirement. The card is designed for people with limited or poor credit, so it may approve you even if other cards have denied you. The only way to know is to check your status without a hard inquiry on Bridgepoint's website, or to apply and see whether you are approved.