Navigating the wide variety of credit cards available can be overwhelming, especially if you’re working to rebuild your credit. Some may find the Milestone Credit Card an appealing offer as it is advertised as a no-credit or poor-credit alternative. But is this card really the best for your financial needs?
In this blog post, we dissect the Milestone Gold Card, including its interest rates, rewards, and fees, as well as its pros, cons, and other card options. By the time you finish, you’ll know if this card fits your needs or if you should consider other options.
Table of Contents
What Is the Milestone Credit Card?
The Milestone Credit Card, issued by The Bank of Missouri, is an unsecured Mastercard designed for people trying to get back on track with their credit. The Milestone card is not secured and does not need an initial security deposit, so it’s friendlier for those with limited funds. It is also universally accepted and is a valuable card for day-to-day transactions. The card also reports to all three major credit bureaus: Equifax, Experian, and TransUnion, so you can build a good credit history and use it responsibly. Whether recovering from a history of poor credit or simply starting your credit journey, the Milestone Mastercard is available to help you.
This post is especially for you if you:
- Have a low credit score or no credit history.
- Are you looking for an unsecured credit card without needing a deposit?
- Want a card that helps you improve your credit score while offering fraud protection?
Milestone Credit Card Basics
Card Type and Issuer
The Milestone Credit Card offered by this issuer is an unsecured Mastercard. So you won’t have to pay a security deposit to establish credit (just as long as you make on-time payments on your previously approved loan product (more info on the type of product you get approved for is below)). The Bank of Missouri offers it, a respected financial institution with a long history of creating specialized credit products for underbanked individuals. To make credit more accessible, this card provides an easy way to build or re-establish credit standing, without requiring a deposit or tying up funds in a savings account.
Credit Bureau Reporting
One of the Milestone Credit Card’s best features is its dedication to helping its users build their credit. It reports all your monthly payment activity to the big three credit bureaus: Equifax, TransUnion, and Experian. This means that each time you make a timely payment, that payment is reported, which can help you begin (or improve) your credit history. For those on the journey to a healthier financial state, responsibly using this card can be the first step toward an excellent credit profile and bright economic prospects in the future.
Starting Credit Limit
Based on creditworthiness, new cardholders generally begin with a milestone credit card limit between $300 and $700. The yearly fee can be subtracted from this limit when the account is issued, which might lower the credit decision. Some even say they have gotten a milestone credit card starting limit of $700.
Example: A $300 credit limit with a $75 annual fee means $225 will be available for purchases initially.
Fees and APR
The Milestone Credit Card includes a variety of fees and an unusually high Annual Percentage Rate (APR), so it is crucial to learn those costs before applying. These cards could charge annual fees, late payment fees, or foreign transaction fees.
Here is a closer look to help you make an informed choice:
| Fee Type | Amount |
|---|---|
| Annual Fee (First Year) | $75–$175, depending on your specific terms |
| Annual Fee (Subsequent Years) | $49 plus a $12.50 monthly maintenance fee ($150/year total) |
| Purchase APR | Up to 35.9% |
| Late Payment Fee | Up to $41 |
| Returned Payment Fee | Up to $41 |
| Foreign Transaction Fee | 1% of each transaction in U.S. dollars |
The APR on the Milestone Credit Card is 35.9%, among the highest for credit-building cards. This can mean significant interest charges if you carry a balance over time. That makes it all the more crucial to pay your balance in full monthly and avoid these costly fees. Although the card can help you build or rebuild credit, its high APR means you’ll want to handle it responsibly to avoid incurring unnecessary debt.
How the Milestone Credit Card Works
Approval Odds and Pre-Approval Process
The card also has a credit card prequalification process if you compare cards, which won’t affect your credit score. Most applicants who fit within basic credit and income requirements and those with post-bankruptcy histories can be approved. A few users have gotten $700 pre-approval credit card offers.
Credit-Building Mechanics
Milestone Mastercard is perfect for increasing credit score when used responsibly, so it sounds like it is for people looking to rebuild, recover, or improve their credit history. By responsibly using the card, such as making payments by the due date and using a small amount of the credit limit, cardholders can show that they are acting responsibly and change their credit history.
- Make on-time payments monthly.
- Keep their milestone card credit limit utilization ratio under 30%.
These habits are key to improving your credit over time.
Activation Steps
Once approved, activating your Milestone Credit Card is simple:
- Visit the official Milestone activation page or call Milestone credit card customer service.
- Follow the instructions to complete your application for activation.
Eligibility for Milestone Credit Card
Who Qualifies?
The Milestone Credit Card is geared toward individuals with:
- Poor or no credit history.
- A history of financial challenges, including past bankruptcies.
This makes it ideal for credit rebuilders looking for unsecured options.
Application Process
Here’s how to apply for a milestone credit card:
- Pre-Qualify: Start by completing an online milestone credit card application to determine eligibility.
- Submit Application: Provide essential details, including your income, SSN, and physical address.
- Approval Notification: You’ll receive a decision shortly after submission.
What to Expect Next
After submitting your application:
- Use the milestone credit card status portal to track your progress.
- If approved, your physical card will arrive within 7–10 business days.
Managing Your Account
Online Login and Payments: Keep everything in pace with Milestone’s online dashboard. It’s an easy way to follow your progress and stay active online, with convenient access to all the tools you need to succeed in one place.
- Log in at milestone.myfinanceservice.com to view your account.
- Pay my milestone credit card bill easily through the dashboard.
Setting Up Autopay: Activate autopay and alerts to ensure your payment is never missed.
Increasing Your Credit Limit: The card offers limited flexibility to increase the credit limit. However, responsible usage may eventually qualify you for better cards.
Cash Advances: While the card offers cash advance features, high fees make it less ideal.
Genuine User Reviews and Feedback
Expert Opinions
- NerdWallet: 1.7/5 high fees, low rewards.
- Credit Karma: Average user score of 573; average limit: $849.
Community Feedback
Reddit reviews and other forums give mixed opinions regarding the choice of a milestone credit card. The no-deposit feature is attractive to many credit rebuilders, who would be hard-pressed to come up with the upfront cost required by most secured and unsecured credit cards. Others, on the other hand, lament that though the card has high fees, like upwards of an annual or maintenance fee, and low credit limits, which can also limit its usefulness for those trying to use it to their credit-score-building advantage. These differing opinions point out the compromises one must make when considering this product.
Is the Milestone Credit Card Right for You?
| Pros | Cons |
|---|---|
| No security deposit required | High fees and APR |
| Reports to all three major credit bureaus | Low Milestone card credit limit |
| Pre-qualification with no score impact | No rewards or cashback |
Milestone Credit Card Alternatives to Consider
If you’re on the fence about the Milestone Credit Card, don’t worry. There are other options out there made specifically for people rebuilding their credit. These five alternatives can actually help you build your credit while providing manageable fees, credit monitoring tools, and flexible options that work for you.
For those focused on building business credit, exploring specialized services like Credit Suite can provide additional guidance. These platforms help entrepreneurs establish and monitor business credit profiles separately from personal credit, which can be crucial for long-term financial growth.
| Card | Annual Fee | Deposit | Key Benefit |
|---|---|---|---|
| Citi Secured | $0 | Yes | Refundable deposit |
| Discover it Secured | $0 | Yes | Cashback rewards |
| Capital One Platinum | $0 | No | No deposit needed |
Conclusion
The Milestone Credit Card could be an option for people in the midst of credit repair who don’t yet have access to secured credit cards, which tend to come with required deposits up front. Being security-deposit-free means that even money-strapped customers can access this service. However, the card carries high annual fees and limited advantages, including no rewards program, which may make it less attractive for long-term financial stability. Those negatives, of course, mean this isn’t going to be the right fit for everyone, especially those who want to earn rewards and still find a way to build some credit. Before getting this card, it’s crucial to assess your financial needs and goals.
If you’re looking for a cheaper, longer-term solution to build your credit, options like the Discover it® Secured or Petal® 2 Visa® could potentially give you more bang for your buck. Discover it® Secured is a card that allows you to earn rewards while building your credit, and the Petal® 2 Visa® is for people with little to no credit history. It comes with cash back as well as no annual fees. Whichever credit card you opt for, remember that responsible use by paying off your balance on time and maintaining a low credit utilization is the secret to healthy credit and reaching financial goals.
FAQs
To quickly activate your Milestone Credit Card, go to the activation page on their website or call the Milestone credit card activation phone number with your mailing.
You can check the status of your application via the Milestone application status portal on the issuer’s website after entering your application reference. That will indicate whether or not your Milestone credit card application is approved or still pending.
There’s no set schedule, but if you continue to pay your milestone credit card payment on time and maintain low utilization, the issuer may consider an increase in the future.
It does have an annual fee: $75-$175 the first year and then $49 plus $12.50 per month; a maximum APR of 35.9%; late and returned payment fees up to $41; and a foreign transaction fee of 1%.
If you need help, you can reach the Milestone credit card customer service number via the address or look for alternatives when you log in to your accounts on the Internet.
