Is Milestone Good for Bad Credit? If high interest rates are holding you back due to a low credit score, rebuilding your credit with Milestone might be a good option. The Milestone Gold Mastercard is designed for individuals with poor or no credit history, offering a chance to improve credit scores through responsible use.
In this article, we’re going to look at the advantages, disadvantages, and opportunities created with the Milestone credit card so that you can determine if MyMilestoneCard is a good fit for your finances.
What is the Milestone Credit Card?
The Milestone Gold Mastercard is a product of The Bank of Missouri, which issues this unsecured credit card. Unlike a secured credit card, it does not have a cash deposit account opening requirement, which makes it easier for people lacking disposable funds for a security deposit.
For those looking to rebuild their credit, a common question is: Is Milestone Good for Bad Credit? This card offers a way to improve credit without needing a security deposit.
Key Features of the Milestone Gold Mastercard:
- No Security Deposit – The biggest difference between Milestone and other secured credit cards is the absence of the mandatory payment upfront deposit.
- Prequalification Available – Without qualifying, it is possible to check if a unit is approved without inflicting a negative impact on a credit rating.
- Activity is Reported to Major Credit Bureaus – Payments and account activity are reported to Equifax, Experian, and TransUnion, which can help in rebuilding your credit score.
- Fixed APR – Milestone also has a fixed annual percentage rate (APR) which is different from other cards that have variable interest rates.
- Accessible for Low Credit Scores – People with poor credit, including those who have previously filed for bankruptcies, are accepted.
The Milestone Credit Card can be a useful option for those looking to rebuild their credit without needing a security deposit.
Pros and Cons of the Milestone Credit Card
If you’re wondering, Is Milestone Good for Bad Credit?, the card offers both benefits and drawbacks, making it important to evaluate before applying.
Pros
- Easy Approval Process – Prequalification does not impact your credit score, and approval is generally easier than with traditional credit cards.
- No Security Deposit – Unlike secured cards, you don’t have to put down an upfront deposit.
- Credit Reporting – Reports to all three major credit bureaus, helping users build their credit score over time.
- Fraud Protection – Comes with fraud liability protection, ensuring security against unauthorized charges.
Cons
- High Fees – The card comes with an annual fee which is bound to change based on creditworthiness.
- Low Credit Limit – The initial credit limits are quite low, usually between $300 and $700.
- High APR – The interest rate is significantly higher than many other credit cards, making it more expensive should you carry a balance.
- Limited Rewards – No cashback or rewards programs unlike some other competing cards.
Understanding these pros and cons can help you decide if the Milestone Credit Card is the right fit for your financial needs.
Milestone Credit Card Fees and Rates
Here’s a breakdown of the common fees associated with the Milestone Gold Mastercard:
| Fee Type | Cost |
|---|---|
| Annual Fee | $35 – $99 |
| APR | 24.90% (Fixed) |
| Cash Advance Fee | $5 or 5% (whichever is greater) |
| Foreign Transaction Fee | 1% |
| Late Payment Fee | Up to $40 |
These fees and rates highlight the importance of paying balances in full to avoid costly interest charges.
Who Should Consider the Milestone Credit Card?
The Milestone Gold Mastercard can be best used for:
- Users with poor credit that are seeking a card to help them build a credit history.
- People who don’t have the means of paying a security deposit for a secured card.
- Individuals seeking for basic credit-building tools that are easily attainable.
However, if your credit score is fair to good, there are better alternatives with lesser charges and greater benefits.
How to Use the Milestone Card to Improve Your Credit?
To maximize your Milestone credit card, do these things:
- Make Payments on Time – History of payments is very important, accounting for 35% of your score. So, always pay the minimum payment on time.
- Keep Credit Utilization Low – Keep it under 30% of the limit in order to increase the score.
- Monitor Your Credit Score – Check your credit score periodically to ensure that there are no errors and see improvements.
- Avoid Carrying a Balance – Do not carry a balance due to the high APR of the card.
If used properly, your Milestone Credit Card can help you create a stronger credit profile over time.
Alternative Credit Cards for Bad Credit
If you’re exploring other options, you might be wondering Is Milestone Good for Bad Credit? While the Milestone Gold Mastercard can be a viable option, there are alternatives that may offer lower fees and additional benefits.
| Card Name | Type | Security Deposit | Annual Fee | Rewards? |
|---|---|---|---|---|
| Discover it Secured | Secured | $200+ | $0 | Yes |
| Capital One Platinum Secured | Secured | $49-$200 | $0 | No |
| OpenSky Secured Visa | Secured | $200+ | $35 | No |
| Credit One Bank Platinum Visa | Unsecured | No | $75-$99 | Yes |
These alternatives may offer lower fees or additional benefits such as cashback rewards.
Conclusion
So, is Milestone good for bad credit? It depends on your requirements. For someone wanting to improve their credit score, the Milestone Gold Mastercard is ideal because it has a simple approval process, reports to major credit bureaus, and does not need a security deposit.
That said, its high fees and few perks make it unsuitable in the long term. For those looking for better options, low-fee unsecured cards or secured credit cards can prove more beneficial. Just be sure to check all of them thoroughly before making a choice.
