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What is the Milestone® Mastercard®?
The Milestone® Mastercard® is an unsecured credit card issued by the Bank of Missouri. It’s designed for those with poor credit. Just about anyone can qualify for the card, with a minimum credit limit of $700. You might qualify for a higher limit, but for those with very poor credit, there’s a good chance you’ll have the lower limit.
Related: How Long Does it Take to Build Credit
You might be denied other unsecured credit cards if you have poor credit, and you may need to make a security deposit to get approved for a secured card. The Milestone® Mastercard® attempts to bridge that gap by providing an unsecured card for those with bad credit.
Milestone® Mastercard® Features
This credit card is fairly straightforward, without many bells and whistles. It’s designed for those with poor credit, so there aren’t a lot of opportunities for perks.
- Doesn’t require a security deposit: Many credit cards aimed at those with poor credit require a refundable security deposit. You don’t need a security deposit with the Milestone® Mastercard®.
- Qualify with bad credit: Even if you have bad credit, there’s a good chance you’ll be able to get this card.
- Mastercard benefits: Because this is a Mastercard, you do have access to protections like extended warranty, $0 fraud liability, and other benefits common to Mastercard.
As you can see, features like rewards programs and 0% APR balance transfers are not available with the Milestone® Mastercard®.
Related: Best Credit Cards for Poor Credit
Fees and Interest Rate
The Milestone® Mastercard® annual fee is $175 the first year; $49 thereafter.
Additionally, the card comes with a monthly fee as well that’s $0 the first year, then $12.50 each month starting in the second year. Note that fees are assessed before you use your card and deducted from your balance. So, if you have a $700 credit limit, you could start out, practically speaking, with only $525.
The interest rate for the Milestone® Mastercard® and the cash advance APR is 35.9%. There is no penalty APR with this card.
Related: Best Interest-Free Credit Cards
How to Apply for the Milestone® Mastercard®
When filling out the final application, you can expect to include the following information:
- Name
- Address
- Social Security number
- Birthdate
- Phone number
You can also expect to provide details such as your monthly income and expenses. You can also choose Overlimit Coverage, which charges a fee of up to $41.
After that’s done, you submit your application. If the bank needs more information, they might call you to verify your income or to ask you to submit other documentation.
Related: Prepaid Credit Card To Build Credit
Security
As expected, you have access to bank-level security and encryption when you use the website.
Mobile Support
Right now there isn’t a mobile app. However, you can create an online account and manage your Milestone® Mastercard® from there. You can schedule payments, check your balance, and request a credit limit.
It is possible to use your mobile device’s browser to navigate to the website and your account. However, you might not be able to see the webpage as well on the smaller screen.
Customer Service
Milestone offers a FAQ you can use to get answers to most common questions. Milestone® Mastercard® encourages cardholders to use their online accounts to manage most customer service related issues, including activating your card when it arrives.
There is a customer service number you can call from 6:00 am to 6:00 pm Pacific, seven days a week: 1-800-453-2636.
Pros & Cons
Before applying for this card, make sure you understand the pros and cons available. With the Milestone® Mastercard®, there’s a good chance you’re better off using something else.
Pros:
- Qualify with poor credit: For those with poor credit, it’s possible to get an unsecured card.
- Help you build your credit score: If you make on-time payments, there’s a good chance that you can see an improvement to your credit by using this card.
Cons:
- Steep annual fees: You’ll pay $175 the first year; $49 thereafter plus more for the monthly fee that kicks in after the first year.
- No rewards program: You can’t earn cash back or travel rewards with the Milestone® Mastercard®.
- No balance transfer option: If you have debt, you can’t transfer it. However, with the high APR and the low limit, you might not want to, even if it was an option.
Alternatives
Instead of using the Milestone® Mastercard®, there are other options that provide better results. Even if you get a secured card, you could be better off. You’ll get your security deposit back, and there are some great options with no annual fees.
Capital One Platinum Secured Credit Card
Capital One offers a secured card that allows you to get a $200 credit line with a $49 security deposit. If you want a higher credit limit, you make a higher security deposit. Plus, the Capital One Platinum Secured Credit Card comes with a $0 annual fee, and will raise your credit limit after making your first five monthly payments on time.
Who Is It For?
This card is ideal for someone who doesn’t want a secured credit card, but is having trouble qualifying for an unsecured credit card.
One of the best things you can do is use the card responsibly, and after a few months see if your credit has improved enough to allow you to qualify for a different unsecured card–one without an annual fee.
Bottom Line
The Milestone® Mastercard® really isn’t the best choice out there for those with poor credit. If you can’t afford a large security deposit, the Capital One Platinum Secured Credit Card is a better choice because you can get close to the same spending power with a $49 deposit–which is cheaper than the fees you’re likely to pay with most options from Milestone.
A secured credit card is just as effective at helping you rebuild your credit, and you can usually find one without the expensive fees.
