The Indigo Credit Card: 5 Things You Didn’t Know

The Indigo Premium Mastercard

This card provides provide a means to build or repair credit, but there are better choices available. Here’s what you should know.

The Indigo Platinum Mastercard offers a choice “for people with less than stellar credit,” according to the card’s website, although it may not be the best.

The card, issued by Utah-based Celtic Bank, comes in a number of colors and patterns, but don’t be fooled by its potentially hefty costs. It provides a pricey road to credit repair. Even individuals with bad credit have greater alternatives.

Here is all you need to know about this card.

1. It may assist you in establishing credit

TransUnion, Equifax, and Experian are the three primary credit bureaus that the Indigo Platinum Mastercard reports to. This is good for someone attempting to establish credit since these bureaus gather the information necessary to generate credit ratings.

Payment history is a significant element in these ratings. As long as you make your payments on time, you may be able to qualify for better credit cards in the future.

2. However, it may come at a cost

You may not be charged an annual fee depending on your creditworthiness. However, if you have bad credit, you will most likely be charged a yearly cost of $59 or $99. The $99 annual charge for new cards is reduced to $75 for the first year.

The more expensive the yearly fee, the less desirable this card gets. After all, you could save a few hundred dollars for a secured credit card deposit, which would enable you to develop credit and ultimately earn that deposit returned if you made on-time payments. (You will not be able to recoup the cost of a yearly subscription.)

In addition, the card has a continuing interest rate of 23.9 percent APR (rate accurate as of March 2019). That is within the normal range for a card aimed at those with bad credit. Nonetheless, it implies that carrying a balance will be costly.

3. You may pre-qualify without jeopardizing your chance

Before submitting a formal application for the Indigo Platinum Mastercard, you may pre-qualify to determine your chances of acceptance (as well as the yearly fee you’re likely to pay) without damaging your credit scores. This way, you’ll know where you stand.

However, pre-qualification does not imply approval; it is more of a “maybe” or “probably.” If you accept the preliminary conditions, you must still submit a complete application for evaluation, which will result in the standard temporary ding to your credit score.

4. However, the limited credit limit is inconvenient

The credit limit is just $300, and it may be reduced owing to costs. Because the issuer levies establishment and maintenance costs, your credit limit may initially be $241 for an account that has a $59 annual fee, for example.

Because of the low credit limit, it is simple to run a high credit utilization, which might harm your credit even as you attempt to repair it. It’s not worth paying a large yearly fee for a credit limit that’s at the very bottom of the scale.

If you have bad credit, you could be better off with a secured credit card, where the credit limit is usually as high as the amount you can deposit.

One such exemption is the Capital One Platinum Secured Credit Card. For a deposit of $49, $99, or $200, you will get a credit limit of $200. You may also acquire a larger credit limit in as short as six months if you pay on time. And, if you keep a solid payment history, you’ll ultimately receive your deposit back. It also lacks the exorbitant yearly cost of the Indigo card.

5. There are a few other advantages

The Indigo Platinum Mastercard comes with Mastercard advantages such as extended warranty coverage and travel support services.

And, since it’s a Mastercard, it’s travel-friendly and generally recognized worldwide. It also has a modest international transaction cost of 1%, while some cards do not charge this fee at all.

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