Milestone® Mastercard® Review
Rating as of May. 8, 2018 based on a review of services April 27, 2023.
- Poor/
- Fair
If you have lousy credit and are looking for a way to build it back; the Milestone Mastercard® is a strong option. There’s a quick application process, modest interest rate and an annual fee of $175 the first year, and $49 thereafter.
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Access to credit line up to $700
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Previous bankruptcy is OK
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Build credit with responsible card use
- Greater access to credit than before - $700 credit limit
- Get a Mastercard accepted online, in store and in app
- Account history is reported to the three major credit bureaus in the U.S.
- $0 liability for unauthorized use
- Access your account online or from your mobile device 24/7
In case you thought you couldn’t get approved for a credit card with your poor credit score, think again. The Milestone® Mastercard® accepts applicants with poor to good credit, so you’re almost guaranteed to be approved.
On top of that, the card has a few neat perks, like several plans to choose from and reporting to the credit card bureaus, making it an interesting option for anyone in need of flexible credit card policies.
Take a good look at the Milestone® Mastercard® if you are struggling, and find out if it’s the answer to financial limbo.
Best for
- People with really poor credit
- Anyone wanting to build their credit from scratch
- Those looking to rebuild credit after a financial mishap
- Anyone who has filed for bankruptcy
Card Overview
The Milestone® Mastercard® is an excellent credit card for people with poor credit who have been rejected by other card companies (or never bothered applying) because of their low credit.
The Milestone® Mastercard® is designed specifically for folks with poor to decent credit. It might not have all the bells and whistles of higher-end credit cards, but it’s perfect for anyone looking to build (or rebuild) their credit history.
Overall, it’s a great option for anyone in this category because it’ll allow you to build a higher credit score based on reasonable spending and responsible repayments. Plus, you can get a couple of perks while you’re at it.
Once approved for the card, the payments you make to pay off your balance are reported to the credit bureaus, which helps you to build a positive credit history and bolster your score.
And unlike some credit cards for bad credit, the Milestone® Mastercard® does not require a security deposit. And it has a relatively low annual fee of $175 the first year; $49 thereafter. There are no monthly maintenance fees, fortunately.
Taking a Closer Look
Similar to a secured credit card, the Milestone® Mastercard® is meant to help you build credit. As such, it doesn’t have a lot of the bells and whistles other credit cards offer.
That said, the Milestone card is actually unsecured, meaning you don’t need to make a security deposit. I’ll cover this in greater detail below.
The goal is to use your Milestone® Mastercard® wisely, establish a good credit history for yourself, and then trade it in for a more rewarding credit card.
For these purposes, the Milestone® Mastercard® is an excellent choice and even offers a few fringe benefits to assist you along the way to positive credit scoring. As mentioned, the low credit is not a problem, so that already starts this card out on a good foot.
Credit Reporting
Another positive aspect to the Milestone® Mastercard® is that it reports your payment history to the three major credit bureaus.
The credit bureaus are the ones who collect information on your spending, repayment, loan, and other financial activities and use this information to build your credit report.
Paying off your credit card bills responsibly and in a timely fashion will increase your credit score and allow you to qualify for better cards in the future.
Related: Best credit cards for a 500 credit score
No security deposit (unsecured vs secured cards)
The Milestone® Mastercard® is an unsecured credit card, the “standard” type of credit card. Therefore, it does NOT require any sort of security deposit to open.
Rates & Fees
Here’s a quick look at the important rates and fees you’ll pay with your Milestone® Mastercard® card:
Annual Fees
The amount you pay for an annual fee will be $175 the first year; $49 thereafter.
While this is a lot higher than the no annual fee credit cards, it’s on par or even cheaper than some cards.
You could opt for a no annual fee card like the Capital One Platinum Secured Credit Card but the credit limit is generally low.
You may actually find the Milestone® Mastercard® fairs better than many other low credit score credit cards because of the additional benefits that come along with the card.
An important note about these fees—The annual and monthly fees are deducted from your credit limit. So, if you have a $175 annual fee with a $700 credit limit, your actual credit limit will only be $525 (not including the monthly fee of $12.50 after the first year).
Not only does this restrict your spending abilities, but it also increases your debt to credit ratio (not a good thing). To avoid this negative repercussion, pay off the fees regardless of your credit card monthly payment and keep your $300 credit limit.
Related: Best no annual fee credit cards
APR
The Milestone® Mastercard® has a flat rate of 35.9%. This is not the highest APR around, but is comparable with other low credit score cards.
Also, many people find it comforting to have a fixed rate with no strings attached. It’s just easier knowing exactly what your APR is and will always be. Additionally, the Milestone® Mastercard® comes with a 25-day grace period, so you can avoid paying interest altogether if you pay off the balance in full each month within this grace period.
A balance transfer is when you transfer the balance on one credit card to a different credit card. It’s often done to save money on interest or consolidate debt.
The APR for cash advances is 29.9% fixed.
Balance Transfer Fees
At present, the Milestone® Mastercard® doesn’t support balance transfers (so there’s no fee for this service). If you’re looking to make a balance transfer, take a look at these balance transfer credit cards for your best options.
Penalty APR
The Milestone® Mastercard® does not charge a penalty APR if you’re late making your payments. The same 35.9% APR applies (or 29.9% for cash advances).
However, to build a positive credit history, you definitely still want to pay your bills on time! Payment history is the most important factor when it comes to building credit. So focus on making all your payments on time, even if you can only afford to make the minimum payment.
While there is no penalty APR, late payments will be subject to a late payment fee of up to $41. The same fee of up to $41 can apply if you exceed your credit limit or have a payment returned.
Foreign Transaction Fees
Foreign transaction fees apply when you make a purchase using a credit card while outside of the U.S. The fee may also apply if you purchase online in a foreign currency.
The Milestone® Mastercard® charges a 1% foreign transaction fee. This is charged whether you’re in a foreign country making the purchase or doing so online at a store that charges in a foreign currency.
While there are plenty of credit cards that don’t charge any foreign transaction fees like the Chase Sapphire Preferred® Card, there are many other cards that charge significantly more, as much as 3% to 5% in fact.
So, 1% isn’t really bad as far as industry standards go. Unless you do a significant amount of international traveling, 1% in foreign transaction fees shouldn’t cost you much. And because it’s a Mastercard®, this card is accepted almost everywhere (including outside the U.S.).
If you are a big traveler, check out the best travel credit cards. However, keep in mind most of these travel cards require good to excellent credit to get approved. So if your credit isn’t great, it’s best to stick to low-credit options like the Milestone® Mastercard®.
Cash Advances
A cash advance is when you use a credit card to access cash (often via an ATM or at a bank) or to access funds transferred to your checking account. This is a secondary use of credit cards in addition to their standard use of paying for goods and services.
The Milestone® Mastercard® has a cash advance fee of $5 or 5%, whichever is greater, but will not exceed $100 per advance. So, if you use your card to get a $200 cash advance, you’ll pay $10 in fees (5% of $200).
The APR for cash advances is 29.9% (compared to 35.9% for standard purchases). Note that interest will still apply to the cash advance starting from day one.
Combined, the initial fee plus the higher interest rate make it fairly costly to take a cash advance using this card. But you don’t need to worry about these fees if you don’t plan to use cash advance features. And you don’t need to take out a cash advance to build a credit history with this card!
Rewards & Benefits
There are no rewards or cash back with this card. However, there are still some benefits!
The first is that the card helps you build your credit. Your payments are reported to the credit bureaus, which builds up your positive payment history and contributes to your credit score.
The Milestone® Mastercard® actually comes with more benefits than most low score credit cards. Of the most significant advantages of the card is the fact it comes complete with the Mastercard® benefits that come along with more exclusive cards. Some of the benefits include:
Identity Theft Resolutions Services
Identity theft resolutions services assist victims of identity theft to fight fraudulent charges, close down accounts, and regain access to their lives after someone has stolen their identities.
Extended Warranty Coverage
Extended warranty coverage offers consumers double the manufacturer’s warranty on many purchase items, giving you more security with your purchases.
Price Protection
Price protection is convenient if you hate finding out that you overpaid for an item. If you find the same thing for a lower price within 60 days of your purchase, the Milestone® Mastercard® ensures that you’ll be reimbursed the difference from what you paid.
Online Access
Another convenient perk of the Milestone® Mastercard® is that you’ll be able to have full account access online whenever you want. This allows you to pay bills online, enjoy paperless statements, view transaction history, and check the status of your account at any time.
Rewards
The Milestone® Mastercard® does not offer any rewards. This is pretty standard with credit cards designed for folks with low credit.
Most people tend to get a card like this one, use it to build credit for a period of time, and then upgrade to a more advanced rewards credit card that offers cash back or travel rewards.
Related: Best rewards credit cards
Security
The Milestone® Mastercard® takes the standard security measures to ensure your safety including using SSL encryption, identity verification for your account, and strict privacy policies to keep your information safe.
Alerts
While the Milestone® Mastercard® itself doesn’t offer direct alerts for your account, its partners offer both account monitoring and alerts services. You can keep an eye on your account to stay ahead of identity fraud.
Also, you can set up payment alerts, so you know exactly when a payment is due and never miss a payment or get charged a late fee.
Customer Support
The Milestone® Mastercard® offers phone support seven days a week from 6AM to 6PM PST. You can also visit the customer center or browse through the thorough FAQ section on the website for DIY troubleshooting.
- Phone: 866-453-2636
- FAX: 503-268-4711
- Snail mail: Bankcard Services, PO Box 4477, Beaverton, OR 97076-4477
Pros & Cons
Pros
- You Don't Need Pefect Credit — This card is offered to those with poor credit.
- Reports to Major Credit Bureaus — Account history is reported to the three major credit bureaus in the U.S.
Cons
- High Annual Fees — This card has an annual fee of $175 the first year; $49 thereafter.
- Costly Interest Charges — This card has a high standard interest rate.
Is the Milestone® Mastercard® Right For You?
The Milestone® Mastercard® could be a great option if you’re looking to build credit. It’s relatively easy to get approved for, even with poor credit.
It’s also a good choice if you’d rather not use a secured credit card. Remember, secured credit cards require an upfront security deposit. But the Milestone card is unsecured, so you don’t have to save up for a security deposit!
And because all your payments are reported to the credit bureaus (Equifax, TransUnion, and Experian), you’ll start building a positive credit history.
This could be a good option if you’ve struggled to get approved for other cards. With that said, if you have some money saved up for a security deposit, choosing a good secured credit card might also be a viable option.