Rebuilding my credit felt like navigating a maze until I stumbled upon the Milestone Mastercard. I wondered, What kind of credit card is Milestone? It’s a common question for anyone with a rocky credit history looking for a fresh start.
After using MyMilestoneCard, I’m sharing my experience to guide you through its features, costs, and whether it’s the right fit. This blog dives deep into its benefits, drawbacks, and alternatives, helping you decide if it aligns with your financial goals.
Understanding the Milestone Credit Card
I explored the Milestone Mastercard to uncover what sets it apart. Let me share the insights I gained about its purpose and key features for users like us.
The Basics of the Milestone Card
I discovered that the Milestone Mastercard, issued by The Bank of Missouri and serviced by Concora Credit, targets people like me with fair or poor credit (scores below 640).
When I asked myself, What kind of credit card is Milestone?, I learned it’s an unsecured card, meaning I didn’t need a security deposit to start. Unlike secured cards requiring upfront cash, it offered a credit line immediately, which was perfect when I was low on funds.
Key Features I Found
Here’s what stood out when I examined the card’s features:
- No Security Deposit: I opened the account without paying upfront, a huge relief when cash was tight.
- Credit Bureau Reporting: My payment history is reported to Experian, Equifax, and TransUnion, helping me rebuild credit with timely payments.
- Credit Limit Range: I started with a $700 limit, though it varies from $300 to $1,000 based on your credit profile.
- Mastercard Perks: I got zero fraud liability protection, which felt reassuring for online and in-store purchases.
- Pre-Qualification Option: I checked my eligibility with a soft credit pull, avoiding any hit to my credit score.
My Application Experience
Applying was a breeze. I visited MyMilestoneCard’s website, filled out a pre-qualification form with my name, address, and income, and got instant feedback without affecting my credit. After approval, a hard credit pull followed, but the process was smooth. I suggest pre-qualifying first to avoid unnecessary credit inquiries if you’re considering this card.
The Milestone card, I realized when pondering what kind of credit card is Milestone, focuses on accessibility for those with credit challenges, but its costs need careful consideration. Let’s dive into the fees and costs I encountered to help you weigh their affordability.
Costs and Fees: My Breakdown
I quickly learned that the Milestone card’s fees were a big factor. Here’s what I faced and what you should know before signing up.
Annual and Monthly Fees
- My first year came with a $175 annual fee, which dropped to $49 in later years. After year one, a $12.50 monthly maintenance fee started, totaling $150 annually. Combined, I could pay up to $199 yearly after the first year. With my $700 credit limit, the first-year fee left me with $525 available credit. Here’s a table summarizing it:
| Fee Type | First Year | Subsequent Years |
|---|---|---|
| Annual Fee | $175 | $49 |
| Monthly Maintenance Fee | $0 | $12.50 ($150/year) |
| Total Annual Cost | $175 | Up to $199 |
Interest Rates I Dealt With
- My purchase APR was a steep 35.9%, far above the 25-27% average for credit-building cards. Carrying a balance meant hefty interest charges. Cash advances also had a 35.9% APR, and foreign transactions cost me a 1% fee per purchase. I made it a habit to pay my balance in full monthly to avoid these high rates.
Penalty Fees to Watch Out
- I stayed vigilant about payments because late fees, returned payments, or going over my limit could cost up to $41. A missed payment could also trigger a 35.9% penalty APR, which lingered on my account. This pushed me to manage my payments carefully.
Reflecting on what kind of credit card is Milestone, I saw it as an expensive tool, requiring smart strategies to maximize its value. Let’s explore the pros and cons I experienced to help you decide if it’s worth it.
Benefits and Drawbacks: My Take
I carefully weighed the card’s advantages against its downsides. Here’s what I found to guide your decision.
Benefits That Worked for Me
- Credit Improvement: My on-time payments boosted my credit score over time, thanks to reporting to all three bureaus.
- No Deposit Needed: I didn’t need upfront cash, unlike secured cards, which was a lifesaver when funds were low.
- Wide Acceptance: I used it anywhere Mastercard was accepted, from grocery stores to online shops, making it versatile.
- Easy Approval: Despite past credit issues, including a bankruptcy, I qualified, which isn’t always possible elsewhere.
Drawbacks I Faced
- High Fees: The annual and monthly fees reduced my usable credit and felt steep compared to no-fee cards.
- No Rewards Program: I earned no cash back or points, unlike some credit-building cards with bonuses.
- Low Credit Limit: My $700 limit made it tough to keep utilization below 30%, a key credit score factor.
- No Balance Transfers: I couldn’t consolidate debt, limiting the card’s flexibility.
Asking what kind of credit card is Milestone? showed me it’s a credit-building tool, but its costs and lack of perks prompted me to explore alternatives.
Alternatives I Explored
After a while, I looked for better options to maximize value. Here are three alternatives I recommend:
- Capital One Quicksilver Secured Cash Rewards: I liked its no annual fee and 1.5% cash back on all purchases. It requires a $200 refundable deposit.
- Discover it Secured Credit Card: This card has no annual fee, offers 2% cash back at gas stations and restaurants (up to $1,000 quarterly), and requires a deposit.
- Petal 2 Visa Credit Card: I found this unsecured card attractive for its no-fee structure and up to 1.5% cash back after 12 on-time payments.
Considering what kind of credit card is Milestone?, it’s a starting point, but these alternatives often offer better terms and rewards. Let’s wrap up with tips to use the Milestone card effectively.
Tips for Maximizing the Milestone Card
I developed strategies to get the most from the card while avoiding pitfalls. Here’s how I did it:
- Pay on Time: I set up autopay to avoid late fees and improve my credit with consistent payments.
- Keep Utilization Low: I stayed below 30% of my $700 limit (about $210) to boost my credit score.
- Pay in Full: I cleared my balance monthly to avoid the 35.9% APR.
- Track Your Credit: I used free tools like LendingTree Spring to monitor my score and confirm payment reporting.
Pondering what kind of credit card is Milestone? revealed it’s a stepping stone, but discipline is key to making it work. Let’s conclude with my final thoughts on this card.
Conclusion
Starting my credit-building journey was intimidating, but the Milestone Mastercard gave me a way forward. I asked, What kind of credit card is Milestone?, and found it’s an unsecured option for those with poor credit, offering a deposit-free start. While it helped me rebuild credit, the high fees and lack of rewards led me to consider other cards.
My experience with MyMilestoneCard taught me to use it strategically. I hope this guide helps you decide if it fits your needs or if another card is a better choice.
