![]() ![]() The “perks” offered, like “multiple design options” are, at least in this case, quite literally shiny distractions for a bad option. The annual fee counts against this credit limit when the account is opened, as it’s charged to the account. None of the cards offer rewards, none offer low introductory APR and most versions of the card have a credit limit of only $300. The annual fees for the Indigo Mastercard range from $0-$99. What is “credit” when food on the table is at risk? But that’s where issuers can cash in: when consumers are stuck in the cycle of needing to pay high annual fees and high interest rates to afford necessities. In those cases, we’ve seen annual fees as high as $125.Ĭertainly, spending higher than 30% of a credit limit is an option and for those who need to do it at the cost of creditworthiness, that’s just survival. Note that you may receive an offer for another annual fee through another marketing channel, like mail. ![]() ![]() To the folks whose credit has been damaged, there is no perfect world. But those applying for a $300 line of credit likely need at least $100-they may not have $100 to pay down a balance that frees up another $100. How does one do this when presented with an annual fee as high as $99 on a credit limit of $300? Is it possible? Sure, in a perfect world. It’s advisable never to use more than about 30% of available credit in order to maintain a healthy credit score. The Indigo Mastercard advertises help to those with bad credit, but contributes to a system that keeps those with low and damaged credit in a vicious cycle of financial hardship.Ī major factor in the determination of a credit score is the credit utilization ratio which is the amount of debt incurred versus credit available. ![]()
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