The Milestone® Mastercard® credit card is one of the few unsecured cards for people with limited, bad, or no credit history. This means that you will not need to pay a security deposit. However, this card has a high APR, charges an annual fee, and has a low credit limit.
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Quick Review
The Milestone® Mastercard® is a useful card for building credit or improving bad credit, especially if you can’t or don’t want to pay a security deposit.
The downsides are that it has a low credit limit of $300 as well as a high APR of 24.9%. Additionally, you’ll need to pay an annual fee of $35–$75 the first year, and $35–$99 the following years.
Luckily, the Milestone® Mastercard® reports your account activity to the three major credit bureaus monthly, which can help you build credit quickly if you use your credit card responsibly and make on-time payments. In addition, the card offers a pre-qualification process which will not affect your credit score.
Milestone® Mastercard® Important Details
Basic Card Details
- Purchase APR: 24.9%
- Annual fee: $35–$99
- Credit card issuer: The Bank of Missouri
- Initial credit limit: $300
- Security deposit: None
Additional Information
- 24/7 access to your account
- Reports to all three credit bureaus monthly
- Quick pre-qualification that does not impact your credit score
- Use wherever Mastercard is accepted in the U.S.
- Fraud protection for lost or stolen card
Milestone® Mastercard® Feature Breakdown
Here are some key features of the Milestone® Mastercard® credit card.
Fees
- Annual fee: $35–$75 for the first year; $35–$99 after that
- Application fee: None
- Monthly fee: None
- Cash advance fee: $5 or 5% of the amount (whichever is greater)
- Foreign transaction fee: 1% of each transaction
- Late Payment Fee: Up to $40
- Overlimit Fee: Up to $40
- Returned Payment Fee: Up to $40
Unfortunately, most credit cards for limited, no, or bad credit charge high fees. While these fees aren’t exorbitant, the annual fee does have the potential to be very high. What annual fee rate you receive will be based on your creditworthiness.
If your credit history has a lot of negative marks, like a bankruptcy or a history of late payments, you may get a high annual fee, which can make carrying this card very expensive over time.
Interest Rates
- Purchase APR: 24.9%
- Cash advance APR: 29.9%
- Penalty APR: None
- Minimum Interest Charge: $1.00
The interest rate is high for this card, which is expected for cards that help you build and rebuild credit. It would be in your best interest to pay the balance off every month in full to avoid high interest charges.
Rewards
This card does not have a rewards program. Rewards cards are rarely available to applicants with poor credit or a lack of credit history. However, there are cards out here that offer cash back to less-than-perfect-credit holders. So if earning rewards is important to you, consider looking for a different credit card.
Cash Advances
The Milestone® Mastercard® can be used for cash advances. Once you’re approved for your card, you may call and request a PIN to be sent to you which will allow you to access cash at ATMs.
However, the cash advance APR is very high at 29.9%, meaning the funds you take out at an ATM could rack up serious interest charges if you don’t pay your balance in full by the due date.
Credit Reporting
Your borrowing history with the Milestone® Mastercard® will be reported monthly to all three major credit bureaus: Equifax, Experian, and TransUnion. Making on-time payments can help you build your credit.
On the other hand, late payments or term violations will be reported, so make sure you use your card responsibly or risk damaging your credit score.
Credit Score Required
You can qualify for the Milestone® Mastercard® with bad to fair credit (300+). Furthermore, borrowers with negative marks on their credit histories, like bankruptcies, can get a Milestone® Mastercard® credit card.
Credit Limit
The credit limit for the Milestone® Mastercard® is $300. While the card doesn’t require a security deposit, this is still a very low credit limit, especially considering the potentially high annual fees.
Requirements for Pre-Qualification or Approval
The Milestone® Mastercard® offers pre-qualification for the credit card. Going through the pre-qualification application won’t hurt your credit score, and will save you from submitting a formal application (which will hurt your credit score through a hard inquiry) if you’re likely to be rejected.
In order to be pre-qualified or approved for this card, you must:
- Be at least 18 years old (19 in AL)
- Have a valid Social Security number
- Have a valid physical address
- Have a US IP address
- Not have previously had a Milestone® Mastercard® account that charged off due to delinquency
- Meet additional credit qualification criteria, including a review of your income and your debt, and identity verification requirements
Should You Get the Milestone® Mastercard®?
FinanceJar verdict
While the Milestone® Mastercard® is one of the few unsecured cards available to people with bad credit, no credit or limited credit, it’s likely not worth the high annual fee and low credit limit. Additionally, with a high APR of 24.9%, it’s not a recommended card for anyone likely to carry a balance.
If you’re worried about qualifying for a credit card, consider looking into the following options:
Who is this card for?
- Borrowers with a discharged bankruptcy: The Milestone® Mastercard® is designed for people with challenging credit histories who are working to improve their credit. Even borrowers with a bankruptcy on their credit report can qualify for this card, which could be a useful resource in rebuilding your credit.
- People who don’t want to pay a security deposit: The Milestone® Mastercard® is one of few unsecured credit cards for people with limited, no, or bad credit, so a security deposit is not required. If you’re determined not to put down a security deposit for a credit card but have poor credit, the Milestone® Mastercard® is worth consideration.
Comparable Cards
Let’s see how the Milestone® Mastercard® compares to similar credit cards.
Milestone® Mastercard® vs. Indigo® Platinum Mastercard®
Both of these cards are for people establishing or rebuilding credit. They are both unsecured credit cards, so neither requires a security deposit.
Additionally, they both report to the three major credit bureaus monthly and offer pre-qualification that will not impact your credit score.
However, the terms for the Indigo® Platinum Mastercard® range more widely. For example, you can be offered an annual fee anywhere from $0–$99, an APR between 24.9%–29.9%, and a credit limit between $300–$500.
Because of the unpredictability of these terms, the Milestone® Mastercard® is likely the safer option for anyone with bad credit, as poorer scores are more likely to get unfavorable card terms.
Milestone® Mastercard® vs. Prosper® Card
Both of these cards are unsecured cards for people with limited histories who want to establish credit. The annual fee for the Prosper® Card is $39, and they offer to waive the fee for the first year if you sign up for AutoPay.
The Prosper® Card offers a higher credit limit of $500–$3,000 with automatic reviews for increases, which is much greater than the Milestone® Mastercard®. The APR for the Prosper card may be higher or lower than the Milestone Mastercard depending on what you qualify for, as the rate is anywhere between 19.24%–30.24% (depending on your creditworthiness).
Additionally, the Prosper® Card does not charge fees for cash advance ATM withdrawals, however, the cash advance APR is 30.24%. Besides potentially high purchase APR and high cash advance APR, the Prosper® Card is the better choice of unsecured credit cards for limited credit histories.
Milestone® Mastercard® vs. Credit One Bank® Platinum Visa® for Rebuilding Credit
Once again, these two cards are aimed at borrowers trying to rebuild their credit histories. The Credit One Bank® Platinum Visa® has a slightly lower APR of 23.99%. The Credit One Bank® Platinum Visa® has an annual fee of $75 first year, and then $99 in the following years.
The biggest difference is that the Credit One Bank® Platinum Visa® has a cashback rewards program where you earn 1% cashback on gas and groceries as well as your monthly mobile phone, internet, cable, and satellite TV services.
They also offer 10% cash back on certain purchases from participating stores. These cash back rewards can help to offset the annual fee, making the Credit One Bank® Platinum Visa® a good credit card choice for credit rebuilders.
