Milestone® Mastercard® Credit Card Review
Let’s talk about the Milestone® Mastercard®, a credit card intended for people with a bad, little, or no credit history.
The Milestone® Mastercard® is designed for those with weak financial health or who don’t have any credit records. It doesn’t require a security deposit, but there is a high annual fee ($175 for the first year, $49 thereafter). Yet those with poor credit, who currently cannot afford to pay a security deposit, don’t have much choice. So, an unsecured card like this one could be an option. If used as a stepping stone towards a better credit, it might prove useful, after all.
Milestone® Mastercard® Credit Card: pros and cons
|Low application requirements. That is the key feature of the card, open to people of all credit levels. It is even a good option for those who have suffered bankruptcy.
||Annual fee. There is an annual fee of $175 for the first year ($49 thereafter). This is rather high, especially considering that most annual-fee credit cards come with cash back rewards or miles.
|No security deposit. This is convenient for those who don’t have enough savings for a security deposit or are living paycheck to paycheck. Most regular, unsecured credit cards don’t allow people with bad credit or no credit history to apply for it.
||Additional fees and high APR. Besides the high and fixed 35.9% APR on purchases, there is a late payment and returned payment fees (up to $41).|
|Low foreign transaction fee. The fee for foreign transactions is 1%. While with other credit cards, it is usually around 3%.
||Low credit limit. You’ll have a credit line of no more than $700. Your annual fee is automatically charged to the credit limit, and it is not specified when and how you can increase this limit.
|Reports to three major credit bureaus. The Card reports to the three credit bureaus: Experian, TransUnion, and Equifax.
||No rewards system. This card offers no rewards, miles, sign-up bonus, travel benefits, or similar perks.
What to know before applying
There are a few things you should consider before applying for the Milestone® Mastercard® Credit Card.
As it is widely known, you can improve your credit score if you pay your credit card bill on time. The next best thing is maintaining your credit utilization rate at a low level.
As the credit limit here is $700, which is automatically reduced by the annual fee, so makes it hard to keep a low ratio. It is usually recommended to keep it under 30%.
There are no cash advance transaction fees during the first year, and after that, they are 5% or $5 per transaction, whichever is higher, $100 at most. However, you’ll still be charged interest from the date of the cash advance.
It is rare for credit cards that approve applicants with poor credit not to require a security deposit. A security deposit is a refundable cash deposit you make upon opening the account and it serves as a collateral for the card. Although this card is unsecured, it still has high annual fees.
While the annual fee, which you pay year after year, is just money sunk that you can’t get back. What’s more, you don’t even get something in return for paying a fee. Even though secured credit cards might seem pricey now, the bottom line is that high annual fees will prove more expensive in the end.
Who can benefit from getting the Milestone® Mastercard® Credit Card?
The Milestone® Mastercard® Credit Card targets those with poor credit who want to build or improve their credit history. People who don’t have the money or don’t want to pay a security deposit will find it appealing, too.
Seeing that it is undisclosed whether and how much you can increase your credit limit, it is not for those who want a card that will have a growing limit. Even with the low foreign transaction fee, it won’t be of much use to travelers either, as it doesn’t offer them any travel benefits. This card is only for those whose objective is credit building and nothing else.
Are there any other benefits?
As with any other credit card, this one has some additional benefits too. These include:
- Mastercard® Identity Theft Protection – in case your identity gets stolen, you’ll get access to several ID Theft services.
- Mastercard® Global Service – includes typical benefits like Emergency Card Replacement and Emergency Cash Advance.
- $0 fraud liability – if your card gets stolen, you won’t be held responsible for any charges that you didn’t authorize.
- Online account access – you can access and manage your account 24/7.
As a credit card that markets itself for people with less-than-perfect credit scores or limited credit history, the Milestone® Mastercard® sure has too many and too high rates and fees. Add the low credit limit and you get an unfavorable combination for those trying to recover financially or are just starting to build their credit.
If you’re looking into this card, you are probably experiencing financial issues, so why would you go for a card that has such a low available credit and will “punish” you for late payments with its penalty APR? You might want to look at other alternatives, like Credit One Bank® Unsecured Visa® for Rebuilding Credit (lower APRs and 1% cash back) or the Secured Mastercard® from Capital One® (low security deposit and no annual fee).
Is Milestone® Mastercard® a good credit card?
While maybe not the worst credit card there is, the Milestone® Mastercard® is not a good credit card. Unless you’re struggling and thus have a bad credit score, you can do better. Even in that case, you could find better credit cards.
What is the customer service phone number for Milestone® Mastercard® Credit Card?
You can reach customer service at 1-866-453-2636
, 7 days a week, from 6 a.m. to 6 p.m. (Pacific time).
How to check my application status for Milestone® Mastercard® Credit Card?
To check your application status you can call 1-866-502-6439
and use the automated system, 24/7.
Another option is to call customer service.