The Milestone® Gold Mastercard® is popular among individuals with limited or poor credit history, as it offers a chance to rebuild credit without a security deposit. This article reviews the Milestone credit card’s features, fees, benefits, and limitations to help you decide if it fits your financial needs.
Overview of the Milestone Credit Ca
The Milestone® Gold Mastercard® is designed for individuals looking to build or rebuild credit. Unlike secured credit cards, it does not require a security deposit, making it an attractive option for those who may not have the funds to secure a card.
| Feature | Details |
|---|---|
| Credit Limit | Typically starts at $300 |
| Security Deposit | None required |
| Credit Reporting | Reports to all three major credit bureaus |
| APR | 24.90% (variable) |
| Foreign Transaction Fee | 1% |
Milestone Credit Card Benefits
- Credit Building Opportunity: With on-time payments and responsible use, cardholders can improve their credit scores.
- No Security Deposit: The card does not require a deposit, unlike many cards targeting individuals with poor credit.
- Fraud Protection: Offers $0 liability on unauthorized transactions, providing added peace of mind.
- Pre-Qualification Check: Allows applicants to check eligibility without impacting their credit score.
| Benefit | Description |
|---|---|
| Credit Building | Reports activity to all three major credit bureaus |
| No Security Deposit | Ideal for individuals without upfront funds |
| Fraud Protection | Provides $0 liability on unauthorized purchases |
| Pre-Qualification Check | Soft inquiry check with no impact on credit score |
Milestone Credit Card Fees and Costs
While the Milestone card is accessible, it does come with certain fees:
- Annual Fee: Ranges from $35 to $99 based on creditworthiness.
- Foreign Transaction Fee: 1% of the transaction amount for purchases abroad.
- Late Payment Fees: Up to $40 if payments are not made on time.
- Cash Advance Fees: Either $5 or 5% of the amount, whichever is greater.
| Fee Type | Amount |
|---|---|
| Annual Fee | $35 to $99 (depending on credit profile) |
| Foreign Transaction Fee | 1% of each transaction |
| Late Payment Fee | Up to $40 |
| Cash Advance Fee | $5 or 5% of the cash advance amount |
User Reviews and Ratings
Positive Feedback
- Credit-Building Assistance: Users appreciate that the Milestone card reports to all three major credit bureaus, which can lead to credit score improvement with responsible use.
- No Security Deposit: Many reviewers find the no-deposit feature appealing since it allows them to start building credit without upfront costs.
Areas for Improvement
- High Annual Fee: Some users report that the card’s annual fee is steep, especially for those with lower credit limits.
- High APR: The interest rate, at 24.90% (variable), is considered high, making it essential to pay off balances each month.
| Aspect | User Rating |
|---|---|
| Credit-Building Potential | Positive |
| No Security Deposit | Positive |
| Annual Fee | Mixed |
| High APR | Negative |
Comparing Milestone with Other Credit-Building Cards
Here’s how the Milestone card compares to other popular options for building credit:
| Card | Annual Fee | APR | Deposit Required | Additional Benefits |
|---|---|---|---|---|
| Milestone Gold Mastercard | $35-$99 | 24.90% | No | Pre-qualification available |
| Capital One Platinum | $0 | 26.99% | No | Higher credit limits with time |
| Discover it® Secured | $0 | 28.49% | $200+ | 2% cashback on specific categories |
| OpenSky® Secured | $35 | 17.39% | $200+ | No credit check |
How to Apply for the Milestone Credit Card
Applying for the Milestone card is straightforward, and you can check pre-qualification without affecting your credit score. Here’s how:
- Visit the Official Milestone Website: Go to Milestone’s website and click on “See If You Pre-Qualify.”
- Complete the Pre-Qualification Form: Fill in your personal details, including name, address, and income.
- Receive a Decision: Milestone performs a soft inquiry and will notify you if you’re eligible.
- Submit Full Application: If pre-qualified, you can proceed with the full application.
FAQs
Q: Does the Milestone card require a security deposit?
A: No, the Milestone® Gold Mastercard® does not require a security deposit, making it accessible for those without upfront funds.
Q: Will using this card help improve my credit score?
A: Yes, responsible use of the Milestone card can help improve your credit score as it reports to all three major credit bureaus.
Q: Is there a credit score requirement to apply for the Milestone credit card?
A: Milestone primarily targets individuals with poor or limited credit history, so it’s accessible for those with low credit scores.
Q: How much is the APR for the Milestone credit card?
A: The APR is 24.90% (variable), which can lead to high interest if balances are not paid in full each month.
Conclusion
The Milestone® Gold Mastercard® can be a useful tool for individuals looking to rebuild or establish credit without needing a security deposit. However, potential users should carefully consider the card’s fees and APR before applying. By making timely payments and monitoring spending, you can effectively build your credit with the Milestone credit card. For more options, check out other credit-building cards for comparison.
