Milestone Mastercard® Review: Is This Credit Card Worth it?
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What we think: The Milestone Mastercard may be an okay option if you don’t want to pay a deposit upfront on a secured card but still want to improve your credit score with responsible card use. The APR on this card can be incredibly high, so be sure to pay the statement balance off every month to avoid interest charges.
You don’t have to pay a security deposit to open this credit card, but you do have to pay an annual fee.
Milestone reports to multiple credit bureaus, making it a little easier to build your credit profile.
This credit card has no rewards program, so you won’t earn any miles, points or cash back on your purchases.
Although the card doesn’t come with a rewards program, it has several helpful features for cardholders who need help establishing a credit history or recovering from bad credit.
To help you determine if the Milestone card is right for you, we set out to answer the following questions:
Is this credit card worth it?
What benefits does the Milestone Mastercard have?
How much can you expect to pay in interest and fees?
The Milestone Mastercard is only worth it if you can’t get approved for a better card due to your credit history. For example, if you recently filed for bankruptcy or went through an auto repossession, this credit card may help you recover from your bad credit score situation. The Milestone Mastercard may also be a good fit if you have no experience managing credit.
The Bank of Missouri offers the Milestone Mastercard to consumers with non-prime credit scores. Generally, this refers to FICO®scores below 660.
The no-frills card doesn’t offer cash back, bonus miles or other rewards, but it does report to all three major credit bureaus. Additionally, the Milestone Mastercard is an unsecured credit card, which means you don’t have to pay a security deposit to open an account.
No security deposit required
Reports to all three major credit bureaus
Pre-qualification process allows you to check your eligibility without affecting your credit score
Accepted wherever you see the Mastercard logo
Multiple card versions are available
Low credit limit
No rewards program
High variable APR
No way to tell which card version you’ll get until you go through the pre-qualification process
Each version of the card has an annual fee; some may also have monthly fees
Milestone Mastercard® benefits
The Milestone card offers the following benefits to cardholders:
$700 credit line: Many starter cards have limits ranging from $300 to $500, so a $700 credit line gives you more flexibility.
Pre-qualification: When you complete the pre-qualification process, The Bank of Missouri uses a soft inquiry to check your credit report. Also known as a soft pull, this has no impact on your credit score. Therefore, you can find out if you’re eligible for a Milestone credit card without affecting your credit in any way.
No security deposit: Banks usually offer secured cards to non-prime borrowers. With a secured card, you must pay a deposit to open your account. Additionally, your credit line is limited to the amount of your deposit. The Milestone card is an unsecured card, so you don’t have to pay anything upfront.
Standard Mastercard benefits: The Milestone credit card has the Mastercard logo, so you can use it anywhere Mastercard is accepted. This credit card also comes with standard Mastercard benefits, such as identity theft protection and $0 liability fraud protection.
Credit-building feature: The Bank of Missouri reports to all three credit bureaus, making it easier to build a solid credit profile. With responsible account management, you may be able to increase your credit score enough to qualify for a loan or another credit card.
Milestone Mastercard® rewards
As part of our Milestone Mastercard review process, we determined that the Milestone card has no rewards of any kind.
You won’t earn cash back, bonus miles, points or other rewards. Additionally, the Milestone credit card offers no welcome bonus, making it rather unimpressive.
Fees, rates & limit
Although the Milestone card doesn’t require a security deposit, it does have an annual fee. You should also know that Milestone offers relatively low credit limits and charges a high variable interest rate.
Let’s take a closer look at the details that you’ll find in the fine print.
Fees
The annual fee depends on which version of the card you receive. Remember, you won’t know which version of the card you qualify for unless you complete the prequalification process. These annual fees range from $35 to $99.
Milestone also charges fees for the following:
Balance transfers: N/A (No balance transfers allowed)
Foreign transaction fee: 1% of the transaction amount
Cash advance fee: $5 or 5% of the advance amount, whichever is greater
Interest rates
Your interest rate affects the total cost of borrowing, so it’s important to understand how much Milestone charges on purchases and balance transfers (learn more about how credit card interest works).
The terms of this credit card vary based on which offer you receive, but here’s a general guide:
Regular purchase APR: Up to 35.9% variable
Balance transfer APR: N/A
Purchase intro APR: N/A
Credit limit
Milestone offers a credit limit of up to $700. This may not seem like a lot of money, but it’s a higher limit than you can get with many other starter credit cards.
First, Milestone requires no security deposit. This allows you to open a credit account without having to take money out of your savings or checking account.
Another advantage of the Milestone card is that it has a higher credit limit than many similar credit cards. A higher limit gives you more freedom to spend without worrying that you’ll run out of available credit.
In terms of interest and fees, the Milestone card is right in line with similar products. The regular APR is up to 35.9% variable, and you may have to pay a high annual fee depending on your current FICO scores.
One of the main drawbacks of the card is that you can’t see the terms until you complete the pre-qualification process. This makes it more difficult to compare the Milestone card with other credit products in order to find the best credit card for you. You also have no opportunity to earn cash back or other rewards on your purchases.
Is the Milestone Mastercard® right for me?
This card is best for people who need a second chance to manage their credit responsibly.
For example, if you have a low credit score and a few dings on your credit report, the Milestone card may help you get back on track. It’s also ideal for consumers who have no experience managing credit.
If you’re unsure about the Milestone Mastercard, check out these reviews to see if another card may be a better fit for helping you build or establish credit:
Why might I want a different credit-building card?
The Milestone Mastercard isn’t for consumers with scores high enough to qualify for lower interest rates, higher credit limits or cards that come with the opportunity to earn rewards on everyday purchases.
You may want a different credit-building card to take advantage of more favorable terms. For example, some cards have no annual fee or lower fixed or variable APRs. Getting a different card may help you minimize your out-of-pocket costs while building your credit or getting back on your feet after a financial emergency.
Milestone is a good credit card if you have no credit history or need help improving your credit after a financial setback. If you have a high credit score and a steady source of income, there are much better cards on the market.
Is the Milestone Mastercard® good for building credit?
Yes. The bank reports to several credit bureaus, giving you a chance to show that you can handle credit responsibly. When you apply for new accounts, other lenders will be able to see how well you’ve managed your Milestone card. For example, if you make on-time payments and avoid exceeding your credit limit, you may find it easier to qualify for a loan or a different credit card in the future.
What is the credit limit for the Milestone Mastercard®?
The credit limit depends on your income, credit score and other factors. Currently, $700 is the highest available limit.
How do I apply for the Milestone Mastercard®?
You can apply for the Milestone Mastercard online from the comfort of your own home. You will need to provide some personal details, such as your monthly income and Social Security number. If approved, you should receive your new card within about 14 business days.
Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.
With more than a dozen years of writing experience, Sarah has tackled niches that range from technical advances in fintech to personal budgeting challenges. She has covered topics such as insurance and the economics of private healthcare, small business management and accounting, and credit and savings. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful and relevant resources for readers.
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