The Indigo Platinum MasterCard promotes that it can help those with weak credit, but it contributes to a system that traps people with negative credit in a cycle of debt.
The credit usage ratio, which compares the amount of debt owed to the amount of credit available, is a crucial element in determining a credit score. To keep a healthy credit score, never use more than roughly 30% of available credit.
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How does one go about doing this when faced with a $99 yearly charge on a $300 credit limit? Is that even possible? In a perfect world, yes. Those looking for a $300 line of credit, on the other hand, will almost certainly require at least $100—they may not have $100 to pay down a bill that frees up another $100. There is no perfect world for those whose credit has been ruined. It’s worth noting that you can get an offer for another annual charge via another marketing channel, such as mail. We’ve seen annual costs as high as $125 in some circumstances.
Spending more than 30% of a credit limit is certainly a possibility, and for those who must do so at the expense of creditworthiness, it’s simply a matter of survival. When the food on the table is in jeopardy, what does “credit” mean? But that’s when issuers profit: when consumers are trapped in a loop of needing to pay exorbitant annual fees and interest rates to meet basic needs.
The Indigo Platinum Mastercard has annual rates ranging from $0 to $99. None of the cards give incentives, none of them have a low introductory APR, and all of them have a $300 credit limit. Because the annual fee is charged to the account, it counts against the credit limit when the account is opened.