If you are looking for a credit card for bad credit, Indigo may be the right choice. This card has a low credit limit, and a low annual fee. It also offers some benefits to people with bad credit. Be aware of the drawbacks before you sign up.
Prequalification
Indigo's Fast Credit Prequalification Service is an excellent option for people with low credit scores who are searching for new credit cards. This service will use a soft credit pull in order to determine your eligibility. Indigo may not be able to approve you for a credit card if your credit score is below 650.
The Indigo creditcard is not for responsible consumers. You might not be eligible to use it every day. The prequalification process takes only a few minutes and is done 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 of the Indigo credit card ranges between $0 and $99, depending upon your credit rating. This card is best for those with excellent credit ratings and no history of late payments. The annual fee could reduce your spending power, and increase your credit utilization.
You should not use the Indigo credit card if your goal is to improve or raise your credit score. While it is not a recommended credit card by the community, it could help your credit score. Even though the card is not reported to credit reporting agencies, it can be used to prove that your financial responsibility and you have made regular payments. 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. This card offers a $300 credit limit, but the annual fee can eat up this amount quickly. The card will report credit activity to three major credit bureaus. This can help improve your credit score.
Overdraft protection on the Indigo credit card allows you to borrow up to ten percent of your credit limit. Overdraft protection fees are $40 per person. Foreign transaction fees of 1% will apply. There is also a 5% cash advance fee. The card also has a 5% cash advance charge. Payments are sent to the three credit bureaus once a month. They will be reported within days.
Foreign transaction fee
The Indigo card's foreign transaction fees are one percent of every foreign transaction. This fee is lower that the average three percent. A card fee is also charged, which can vary depending on your credit score. The initial year's fee is $75, and $99 for each subsequent year. The annual fee is subject to change depending on credit scores. However, it is usually higher than the average annual fee for new credit cards.
The Indigo mastercard starts out with a credit limit of $300 and requires no initial deposit. The credit limit can only be increased once, so a large credit limit is not possible. Customers can regulate their spending habits, and maintain their credit score with the card. It uploads monthly payments records to the three major credit agencies.
Late payment fees
Late payment fees on Indigo credit cards can be as high at $40 if you are late with your payments. However, the indigo card does come with standard fees. In addition to a $35 late payment fee, there are also annual fees and foreign transaction fees. The first year fee is $75. $99 per year follows. Whether these fees are based on your credit score or not is not specified.
Fixed interest rates (APR) are one of the many benefits of the Indigo card. Late payments won't affect your credit score. Compared to other unsecured credit cards, this card is one of the most affordable. In fact, several applicants have been approved despite having low credit scores, with scores in the 600s and under. However, those with lower credit scores will have to pay a higher interest rate and fees than those with good credit.