Bad credit can happen to the best of us, for any number of reasons. Missing a payment here or there, facing financial hardship that forces bankruptcy or foreclosure, or an account that makes its way into collections can all be detrimental to your credit score. The unfortunate reality is that when credit is an issue, it can be an uphill battle getting the financing you need or want in the future.
Most lenders want to know that you have a strong financial track record of responsible credit use, and without it, you may feel a bit stuck. However, there is a small subset of lenders who cater directly to those with less than perfect credit. Usually considered bad or poor on the credit rating scale. The Indigo Platinum Mastercard, made available through Celtic Bank of Utah, is designed specifically for individuals who have faced credit challenges in the past. Here’s what you need to know about the credit card.
What is the Indigo Platinum Mastercard?
The Indigo Platinum Mastercard is a credit-builder card that helps individuals create a history of responsible credit use. Just like any other credit card, it offers a flexible credit line that can be used over and over again, so long as the account remains in good standing. After a short application process, cardmembers are provided a Mastercard credit card that can be used wherever Mastercard is accepted. Going through the pre-qualification questionnaire does not impact your credit, but submitting a full application will require a credit check. Most applicants receive a decision within a few minutes.
The benefit of the Indigo Platinum Mastercard is that even those with less than perfect credit can qualify and are likely to get approved. Cardmembers can choose the design of the credit card they receive, and as payments are made on time each month, the card issuer reports these details to the credit bureaus. Over time, this credit-builder card can have a positive impact on your credit score by boosting your credit history, your payment history, and your credit utilization ratio.
Card Details – Application and Credit Limit
Although the Indigo Platinum Mastercard does not require a high credit score to qualify, applicants are encouraged to complete a brief pre-qualification application to see if they are eligible for the card. The card issuer states that not everyone will get approved, and that the pre-qualification questions are meant to provide a soft “yes” or “no” as it relates to approval if a full application is submitted. To determine if you are qualified for the credit card, you can submit your information online, including name, social security number, date of birth, income, and home address.
After submitting the online application, the available credit line is disclosed to the cardmembers. This amount will vary significantly from one applicant to the next, depending on several factors including income and your credit history. Most credit limits range from a few to several hundred dollars. The good news is that there is no deposit required like there is with a secured credit card, commonly used build credit. This card is unsecured. However, there are other downsides to consider.
The Fees
One of the biggest drawbacks to the Indigo Platinum Mastercard involves the fees charged on the account. Depending on your credit history at the time of application, your card may come with an annual fee ranging from $59 up to $99. This is charged immediately once the account is approved and established. If you have a credit limit of a few hundred dollars, the annual fee can take a big chunk out of that in a hurry.
Additionally, the credit card charges interest on all purchases, at a variable rate of 23.9%. This can add up quickly if you do not pay off your balance in full each month. Additionally, losing your card will cost you a pretty penny, as the card issuer charges $150 for a replacement. There are no promotions for low or zero interest purchases, or balance transfers, so this card certainly isn’t for everyone and is recommended only for building credit when you have limited options.
Getting Started with the Indigo Credit Card
The Indigo Platinum Mastercard is an easy option for those who want to work on improving their credit over time. Because the card reports to the three credit bureaus each month, building a history of on-time payments and responsible credit use will certainly help you rebuild bad credit. However, anyone who has a good to excellent credit score should look elsewhere for better credit card options.
If you think the Indigo Platinum Mastercard may be a good fit for you, you can go through the pre-qualification process online. It takes just a few minutes to complete, and you’ll have an idea of your approval odds once it is done. Be sure to have a plan for repaying the annual fee, as well as any other charges you make on the card, so you can avoid costly interest over time.
