By : 
Mr Credit Card
Mr Credit Card
The Indigo Mastercard with Higher Credit Limit is an unsecured credit card that is issued by Celtic Bank and serviced by Concora Credit. It has an annual fee of $125 and a credit limit of $500. This version of Indigo is one of three credit cards which they have. These include the Indigo Credit Card with $300 credit limit and the Indigo Mastercard with CashBack Rewards and the Indigo Mastercard with Highest $700 Credit Limit.
The Indigo Mastercard with $500 credit limit is ideal for rebuilders looking for an unsecured credit card with at least a $500 credit limit but one that does not charge additional monthly fees and one-time program fees on top of an annual fee. Indigo will also approve those who have just been discharged from bankruptcy and is ideal for post BK rebuilders.
The Indigo Mastercard with $500 credit limit is ideal for rebuilders looking for an unsecured credit card with at least a $500 credit limit but one that does not charge additional monthly fees and one-time program fees on top of an annual fee. Indigo will also approve those who have just been discharged from bankruptcy and is ideal for post BK rebuilders.
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Card Details
| Credit Limit | $500 |
| Annual Fee | $125 |
| Foreign Transaction Fee | 1% |
| Penalty Fee | Late Payment - $39.00 Returned Payment - $19.00 Over-The-Credit-Limit - $0 |
| APR | 29.9% |
| Bank Issuer | Celtic Bank |
| Serviced by | Concora Credit |
| Customer Service Phone Number | 1-800-353-5920 |
| Corresponding Address | Concora Credit PO Box 4477, Beaverton, OR 97076-4477 |
$500 Credit Limit - Higher Than Other Indigo Credit Cards
This version of the Indigo card is called the "Indigo Mastercard with Higher Credit Limit". It is a rather interesting name to call the card but the reason is because all other versions of the Indigo credit card have a $300 credit limit. In contrast, the Indigo Mastercard "with higher credit limit" has a $500 credit limit. Like other versions of the Indigo credit card, the credit limit is fixed and will not increase.Annual Fee Only - No Monthly Fee or One-time Program Fee
The Indigo Mastercard with Higher Credit Limits charges only a $125 annual fee. It does not charge any monthly fees or one-time program fee. This is in contrast to many other unsecured credit cards which has monthly fee and program fees on top of an annual fee.Low 1% Foreign Transaction Fee
All Indigo credit cards only charge a 1% foreign transaction and the Indigo Mastercard with higher credit limit is no exception. 1% on a foreign transaction fee is lower than the standard 3% which is common in most credit cards.Mastercard Benefit: $0 Liability for Unauthorized Charges
The Indigo Mastecard offers cardholders $0 liability for unauthorized charges. This is a standard available in most credit cards.Requirements to Get Approved
- FICO score - You need a minimum FICO score of at least 510 though you stand a better chance of approval in the 580 to 650 range.
- Debt to Income ratio - Your monthly debt interest payment should be no more than 40% of your income. And this includes your rent or mortgage.
- Settled Charge offs - You have either have settled or paid off all charge offs and collections.
- No delinquencies for the last year - You should have no delinquent accounts during the last year. That means you should be paying your bills on time during this period.
- Minimum Income - You should have an income of at least $30,000 a year. And also be prepared to upload any W2 or 1099 if you are asked during the application process.
Analysis - Total Fees to Credit Limit Ratio (TFCL)
| Card | Annual Fee | Monthly Fee | Credit Limit | Total Fee to Credit Limit Ratio |
|---|---|---|---|---|
| Indigo $500 | $125 | $0 | $500 | $125/$500 = 25% |
| Indigo $700 | Year 1= $175 year 2 = $49 | Year 1 = $0 Year 2 = $12.50/month | $700 | Year 1 = $175/$700 = $25% Year 2 = $(49 + ($12.50 X 12))/$700 = 28.43% |
| Indigo Cash Back | Year 1= $75 Year 2 = $99 | $0 | $300 | Year 1 = $75/$300 = 25% $99/$300 = 33% |
| Milestone $700 | Year 1= $175 year 2 = $49 | Year 1 = $0 Year 2 = $12.50/month | $700 | Year 1 = $175/$700 = $25% Year 2 = $(49 + ($12.50 X 12))/$700 = 28.43% |
| Destiny $700 | Year 1= $175 year 2 = $49 | Year 1 = $0 Year 2 = $12.50/month | $700 | Year 1 = $175/$700 = $25% Year 2 = $(49 + ($12.50 X 12))/$700 = 28.43% |
| Reflex $500 | $125 | Year 1 = $0 Year 2 = $0 - 10/month | Month 0-5 = $500 6 Months = $1,000 | Year 1 = $125/$500 = $25% Year 2 = $(125 + ($10 X 12))/$1,000 = 24.5% |
| Reflex $750 | $125 | $0 | Month 0-5 = $750 6 Months= $1,500 | Month 0-6 = $125/$750 = 16.67% Month 6 = $125/$1,500 = 8.3% |
| Reflex $1,000 | $125 | $0 | Month 0-5 = $1,000 6 Months= $2,000 | Month 0-6 = $125/$1,000 = 12.5% Month 6 = $125/$2,000 = 6.25% |
Comparison with Other Indigo Credit Cards
Indigo has two other credit cards aside from this $500 version. Their main card now (which is prominently featured on their site) is the Indigo Mastercard $700 Credit Limit Version, which has higher fees than the $500 version but also a higher credit limit. The Total Fee to Credit Limit ratio (TFCL) is 25% during the first year. But since the $700 version charges a monthly fee from the second year onwards, it rises to 28.43% from the second year onwards.Indigo also has a 1.5% cashback rewards version that has a $300 credit limit. During the first year, the annual fee is $75 and it increases to $99 from the second year onwards. The TFCL ratio is the same for both cards during the first year at 25%. From the second year onwards, the cashback version has a much higher TFCL ratio at 33%.
From a TFCL ratio perpective, the Indigo Mastercard with Higher Credit Limit ($500 version) has the most bang for the buck interms of fees paid relative to the $500 credit limit. But if you want a higher credit limit, then the Indigo Mastercard with $700 limit is probably the one you should be considering.
Compared to Other Concora Credit Cards
Concora Credit has two other credit cards that are similar to the Indigo $700 limit version. They are the Destiny Mastercard with $700 Credit Limit and the Milestone Mastercard with $700 Credit Limit.Both these cards are identical to the Indigo $700 Credit Limit version so the analysis remains the same. The Indigo $500 has a slightly lower TFCL ratio from the second year onwards (25% vs 28.43%), but a lower credit limit.
Compared with another $500 Credit Limit and/or $125 annual fee card
Another credit card that I am going to compare the Indigo $500 card to is the Reflex Mastercard. The Reflex Mastercard requires you to go through a pre-approval and there are four versions that you may be offered with the following credit limits ($300, $500, $750 and $1,000). If you pay on-time for the first 6 months, your credit limit will double to ($600, $1,000, $1,500 and $2,000) respectively. I am going to compare the $500, $750 and $1,000 limit version. The $500, $750 and $1,000 version have $125 annual fee, which is similar to the Indigo $500.The Reflex $500 version has a $125 annual fee. From the second year onwards, they can charge up to a $10/month monthly fee (which works out to $120 annually). From a fee perspective, the Indigo $500 will have a lower fee from the second year onwards. However, Reflex will double the initial credit limit of $500 to $1,000 after 6 months if you pay on-time. The TFCL analysis show that despite the increase in fees from the second year onwards, the TFCL ratio is actually slightly lower for the Reflex $500 at 24.5%.
Both the Reflex $750 and $1,000 credit limit version charges only a $125 annual fee and no monthly fee. So the annual fee is similar to the Indigo $500. But since the Reflex $750 and $1,000 have higher credit limits which doubles after 6 months, the TFCL ratio is much lower compared to the Indigo $500. If a higher credit limits are important to you, then the Reflex Mastercard (especially the $750 and $1,000 version) is a very good alternative.
What We Like
- Decent $500 Credit Limit - A $500 credit limit is actually very decent for a subprime credit card where most credit cards start you off with only a $300 credit limit.
- No Monthly Fee or One-time Program Fee - The Indigo $500 only charges a flat $125 annual fee. It does not charge any one-time processing fee or monthly fee from the second year onwards.
- Has Mobile App - Indigo has finally got a mobile app where you can monitor and manage your account.
- Low Foreign Transaction Fee - Indigo charges a 1% foreign transaction fee, which is lower than the standard 3% that most credit cards charge.
Complaints About Indigo
- Credit Limit Does Not Increase - This is the biggest complaint of all Indigo credit cards. And that is they do increase your credit limit. It will always be $500.
Our Take: Decent Rebuilder with a Decent Credit Limit
The Indigo Mastercard with $500 Credit Limit has a higher credit limit and only charges an annual fee. It is much better than the vast majority of unsecured credit cards targeting those with bad credit. Furthermore, the Indigo Mastercard is BK friendly and will approve you even if you have just been discharged from bankruptcy. They also have a mobile app where you can manage and monitor your account.
The biggest complaint of all Indigo credit cards (including this one) is that they do not increase your credit limit. So that means you will be stuck with a $500 credit limit as long as you keep the card open. There are other subprime unsecured credit cards with higher limits and even lower fees. But they tend to be more difficult to get and have more stringent criteria.
To sum up, based on our review and evaluation, we give the Indigo Mastercard $500 Credit Limit a 4 stars out 5 for it's decent credit limit (for a subprime unsecured credit card), not charging any monthly fee or one-time program fee, a decent mobile app, low foreign transaction fee and it's acceptance of those who have been discharged from bankruptcy. It's lack of credit limit increase prevents us from giving it a higher rating.
If you are a rebuilder looking for an unsecured credit card, or if you have just been discharged from a bankruptcy, you might want to consider the Indigo Mastercard with $500 credit limit. There might be other unsecured credit cards with higher credit limits or lower annual fees, but these cards typically need you to have a higher credit score in the mid 600 area to get approved. The Indigo Mastercard is ideal for those of you whose credit scores are still in the 500 area. If you are looking for an even higher credit limit, then the Indigo Mastercard with $700 - the highest credit limit might be worth checking out.
Customer Reviews
I just got this card. I don't really like the $125 annual fee but the $500 credit limit is worth it. When your credit is not good,you have to pay the price for it. So far, the card has reported consistently to the credit bureaus 2 days after statements. My payments also clear after a few hours and there are no payment holds like some other credit cards I used to have.
I have had a secured credit card for 6 months and just got approved for the Indigo card. My credit limit is $500 with a $125 annual fee. I hope to keep this card for only a year and then hopefully get better cards with higher credit limits. But in the meantime, this will do for an unsecured credit card.
What I like about the Indigo card is that my payment clears very fast (same day) and they report to the credit bureaus very quickly after statement date and consistently too.
