If you are looking for a credit card for bad credit, Indigo may be the right choice. This card offers several benefits to those with bad credit. You should still be aware that there are downsides to this card before signing up.
Prequalification
If you are looking for a new credit card, Indigo's Fast Prequalification service is a great option for people with bad credit. This service uses a soft score pull to determine your eligibility. Indigo will not approve credit cards with scores below 650.
Although the Indigo credit card is designed for irresponsible consumers, you may not be able to use it for everyday purchases. However, prequalification is simple and fast online. A soft inquiry is made to credit reports when you apply for the card. This inquiry does not affect the score.
Annual fee
The annual fee for Indigo Credit Card ranges from $0 up to $99 depending on credit scores. This card is recommended for people with good credit and no history or late payments. The annual fee could reduce your spending power, and increase your credit utilization.
If you are looking to improve your credit score, you should avoid the Indigo card. While it is not a recommended credit card by the community, it could help your credit score. While it is not reported to credit bureaus, you will still be able to prove that you are financially responsible if you make regular payments. The application process requires you to fill out general financial information and verify it.
Overdraft protection
Indigo credit cards might be a good option if you're looking to get a credit card that is easy to use and has a low fee. Although the card allows for a $300 credit limit (but not an annual fee), it can quickly consume this amount. The card reports your credit activity to all three major credit bureaus. This can help you improve credit scores.
You can borrow up to ten per cent of your credit limit with overdraft protection from the Indigo credit cards. There is a flat fee of $40 for overdraft protection, and you'll pay a 1% foreign transaction fee. A 5% cash advance fee is included on the card. A monthly payment is made to the three credit agencies. The payments are usually reported within a few working days.
Foreign transaction fee
The Indigo creditcard charges a foreign transaction cost of one percent on each transaction. This is less than the average three-percent foreign transaction fee. An annual fee is charged for the card, which will vary depending on your credit rating. The initial fee is $75, then $99 every year thereafter. Although it's not clear whether the annual fee will change depending on your credit score or not, it is much higher than the average annual credit card fee.
The Indigo mastercard comes with a credit limit up to $300. There is no initial deposit. A credit limit cannot be increased more than once so it is not possible to have a large credit limit. 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 penalty
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. There are annual fees as well as foreign transaction fees. The $75 first-year fee is followed by $99 for each subsequent year. The fee is not determined based upon your credit score.
The fixed interest rate (APR) is one of the benefits to the Indigo credit card. You won't lose your credit score if you make late payments. This card is among the most affordable unsecured credit cards. 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.