The Indigo Mastercard Annual Fee: A Surprising Benefit for Credit Scores

When it comes to credit cards, we often expect a range of fees and charges that can eat away at our hard-earned cash. But what happens when you come across a card with no annual fee? For me, this was the case with the Indigo Mastercard, which I applied for through Credit Karma's guaranteed approval link.

With a credit limit of $1500, I was initially surprised to see that there were no monthly or annual fees attached to the account. As someone who is still rebuilding my credit after a Chapter 7 discharge, I was curious about whether keeping this card open could have any downsides. In this article, we'll explore the benefits and potential drawbacks of using the Indigo Mastercard with no annual fee.

First, let's talk about the interest rate. At 29.9%, it's not a card to roll over each month, but for small purchases or items I intend to pay off immediately, the lack of fees makes it an attractive option. With this card, my utilization ratio will drop even further, which is great news for my credit score.

I applied for the Indigo Mastercard as part of a test to see how many inquiries I could handle without impacting my credit score too much. With scores ranging from 620 to 634 across all three major credit reporting agencies, I was careful not to overdo it. In the end, I got approved with a $1500 limit and no fees whatsoever.

So, what are the potential downsides of keeping this card open? The main concern is the high interest rate, which means that carrying a balance could lead to significant debt accumulation. However, for small purchases or items I intend to pay off immediately, the lack of fees makes it an attractive option.

In conclusion, the Indigo Mastercard with no annual fee has been a pleasant surprise in my credit journey. While the interest rate is high, the lack of fees and the opportunity to reduce my utilization ratio have made it a valuable addition to my financial portfolio. If you're considering applying for this card or any other credit product, be sure to carefully review the terms and conditions before committing. With responsible use, this card could be a great way to improve your credit score without breaking the bank.

Indigo mastercard annual fee