The Milestone Credit Card, issued by the Bank of Missouri, is an unsecured credit card specifically designed for individuals with poor to fair credit who are looking to rebuild their credit score. In this comprehensive guide, we will delve deeper into the pros and cons of the Milestone Credit Card review, providing detailed examples and case studies to help you decide if this card is the right fit for your financial needs.
Milestone Credit Card Reviews: Pros
Easy Approval Process
The Milestone Credit Card is known for its easy approval process, making it an attractive option for those with poor to fair credit.
Unlike secured credit cards, the card issuer typically does not require a security deposit.
For example, if you have a credit score of 580, you may still be approved for the Milestone Credit Card, while other credit card issuers may require a higher score or a security deposit.
Credit Reporting
Milestone reports your payment history to the three major credit bureaus—Equifax, Experian, and TransUnion—which can help you rebuild your credit score over time with responsible use and timely payments.
By consistently making on-time payments and keeping your credit utilization low, you can gradually improve your credit score.
For instance, a cardholder who makes timely payments and keeps their balance below 30% of their credit limit may see their credit score increase by 50-100 points within a year.
Fraud Protection
The card offers zero liability for unauthorized transactions, protecting you from potential fraud and identity theft.
If you notice any suspicious activity on your account, you can report it to the card issuer, and they will investigate the charges. You won’t be held responsible for any unauthorized charges.
Milestone Credit Card Reviews: Cons
High Annual Fee
The Milestone Credit Card charges an annual fee that ranges from $35 to $99, depending on your creditworthiness. This can be a significant expense for a card with limited benefits and rewards.
For example, if you’re charged a $99 annual fee, it might be more cost-effective to choose a secured credit card with a lower fee or even no annual fee.
High-Interest Rate
The card’s APR is relatively high, which can lead to costly interest charges if you carry a balance.
For instance, if you have a $1,000 balance on your card and only make the minimum payment each month, you could end up paying hundreds of dollars in interest charges over the course of a year.
It’s crucial to pay off your balance in full each month to avoid accumulating debt.
Limited Perks
The Milestone Credit Card does not offer rewards or cashback, unlike many other credit cards available to consumers with similar credit profiles.
In comparison, the Discover it® Secured card offers 2% cashback at gas stations and restaurants (on up to $1,000 in combined purchases each quarter) and 1% cashback on all other purchases.
Milestone Credit Card Reviews: Alternatives
If the Milestone Credit Card doesn’t seem like the perfect fit for you, consider these alternatives:
Secured Credit Cards
Cards like the Discover it® Secured or the Capital One Platinum Secured offer lower annual fees and interest rates than the Milestone Credit Card.
Although they require a security deposit, they also provide cashback rewards and other perks.
For example, Discover it® Secured offers a cashback match program, matching all the cashback earned at the end of your first year.
Credit Builder Loans
Credit builder loans are another option for those looking to rebuild their credit. These loans are specifically designed to help borrowers establish a positive payment history.
You pay the loan off in monthly installments, and the lender reports your payments to the credit bureaus. Once the loan is paid off, you’ll receive the funds back, minus any interest and fees.
Store Credit Cards
Some retail store credit cards have more lenient approval requirements than traditional credit cards, making them a potential alternative for rebuilding credit.
Keep in mind that store credit cards often have high-interest rates and may only be used at specific retailers. However, if used responsibly, they can still help improve your credit score.
Co-signed Credit Card
If you have a family member or friend with good credit who is willing to co-sign a credit card application for you, this can be an excellent way to access a credit card with better terms and conditions.
The co-signer’s good credit history may help you qualify for a card with lower fees and interest rates.
Just remember that both you and your co-signer are responsible for any charges on the card, so it’s essential to use the card responsibly and make timely payments.
Milestone Credit Card Reviews: Conclusion
The Milestone Credit Card may be a viable option for individuals with poor to fair credit looking to rebuild their credit history.
However, the card comes with a high annual fee and interest rate, and it lacks rewards or cashback programs.
Before deciding on the Milestone Credit Card, carefully consider your financial situation and explore alternatives that may better suit your needs.
Remember to use your credit card responsibly, make timely payments, and keep your credit utilization low to improve your credit score over time.
For more insights on credit cards and rebuilding credit, check out our Ultimate Personal Finance Guide article.
Milestone Credit Card Reviews: FAQ’s
The Milestone Credit Card is a credit card offered to individuals with poor or limited credit history. It provides an opportunity for individuals to build or improve their credit score.
The Milestone Credit Card does not require a security deposit, making it accessible to individuals with limited funds. It reports to all three major credit bureaus, which can help to build or improve credit scores. Additionally, it provides access to a variety of tools and resources to help individuals manage their credit.
The Milestone Credit Card has a high annual fee, which can be a burden for individuals with limited funds. It also has a high interest rate, which can result in expensive finance charges if the balance is not paid off each month.
Compared to other credit cards for individuals with poor credit, the Milestone Credit Card has a relatively high annual fee and interest rate. However, it does not require a security deposit, which can be a benefit for individuals with limited funds.
Yes, there are other credit cards available for individuals with poor credit, such as the Secured Mastercard from Capital One and the OpenSky Secured Visa Credit Card. It’s important to research and compare different credit cards to find one that fits your financial situation and goals.
To use the Milestone Credit Card to improve your credit score, it’s important to make timely payments and keep the balance low. You should aim to keep your credit utilization ratio below 30%, which means using no more than 30% of your available credit. Additionally, monitoring your credit report regularly and disputing any errors can help to improve your credit score over time.
The Milestone Credit Card is designed for individuals with poor or limited credit history. While there is no specific credit score requirement, individuals with low credit scores are more likely to be approved.
Yes, the Milestone Credit Card can be used internationally. However, it’s important to note that it may come with foreign transaction fees and may not be accepted at all merchants.
No, the Milestone Credit Card is not a good option for balance transfers. It has a high interest rate and does not offer a 0% introductory APR on balance transfers.
You can apply for the Milestone Credit Card online through their website. The application process typically involves providing personal and financial information and consenting to a credit check.
