The Indigo Platinum Mastercard may be an option for “those with less than perfect credit,” as the card’s website states, but there are better choices available.
Sure, it can add a splash of color to your wallet with six card designs to choose from, but it can be costly. The annual fee is $0 to $99, depending on creditworthiness — and it’s best to assume that if you have bad credit, you’re more likely to be on the $99 end than the $0 end. Your credit limit is likely to be low, too: The card’s terms and conditions suggest that a $300 limit is typical. That makes it easy to run a high credit utilization, which can harm your credit even as you’re working to improve it. Plus, the 23.90% APR for purchases is high, so keeping a balance is not ideal.
It’s not all bad, though. The card reports to all three credit bureaus, so timely payment will be reflected on your credit report. Cardholders also get Mastercard benefits, which include extended warranty coverage and travel assistance services, among others.
Before formally applying for the Indigo Platinum Mastercard, you can pre-qualify to check your likelihood of approval (and the annual fee you’re likely to pay) without affecting your credit score. This way, you know where you stand.
Also consider: The Capital One® Secured Mastercard® offers similar benefits for bad credit, and it has a $0 annual fee. It requires a cash security deposit, but as long as you pay your bills, you’ll eventually get that money back — unlike with annual fees. This card starts you off with a credit limit of $200 for a deposit of $49, $99 or $200, depending on your creditworthiness. You can pay the deposit in installments, and you can pay more to get a higher credit limit. Make your first five monthly payments on time, and you can qualify for a higher credit line without adding more money to your deposit.