In this Milestone Gold Mastercard® review, we’ll look at who the card is for, the card’s credit score requirements, the annual fee, the pros and cons, and more.
This Milestone Credit Card Review Contains:
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Let’s begin with this Milestone credit card review.
If you have a less than perfect credit score, or even a bad credit score, then this could be the credit card you’ve been looking for. The Milestone Gold Mastercard is widely accepted by vendors all across the US, it reports your account history to all three credit bureaus which allows you build credit over time, and it comes with fraud protection in case your card ever gets lost or stolen.
Bank of Missouri, the issuer of the Milestone Gold Mastercard, has designed it for applicants with Poor-Fair credit, that's credit score between 300-580.Pre-qualification is a breeze via an online application and it does not affect your credit score.
An important to note is that the credit card company will adjust the annual fee for the card based on your credit scores. The better your credit score, the less annual fee you'll be required to pay.
Let’s now look at the fees you can expect to pay when using the Milestone Credit Card.
For starters, you can expect to pay an annual fee anywhere between $35-$99 annual fee, depending on your credit score. This is the average fee for credit cards designed for building credit.
Why does it vary?
Once you submit your application, the card issuer will consider you for three different annual fee brackets for the Milestone Gold Mastercard, based on your credit profile.
You can either qualify for a flat $35 annually or, $75 for the first year and $99 for subsequent years.
Regardless of which offer you qualify for, not paying your bills on time, exceeding your limit, and bounced payments could cost you up to $40 for each offense.
Unlike a lot of cards in this segment, the Milestone Gold does not levy a monthly fee of any kind. Plus, foreign transactions only cost an additional 1% instead of the typical 3%.
Lastly, the Milestone Gold Mastercard has a cash advance fee of $5 or 5% whichever is higher.
The Milestone Gold Credit card comes with a fixed APR of 24.90% on purchases. Cash advances have a fixed APR of 29.90%.
Although these numbers seem high, they are the norm for unsecured credit cards designed for building credit. As long as you pay off the entirety of your balance on time each billing cycle, you won't have to worry about paying any interest.
The Milestone Credit Card supports a zero liability policy for all its users.
The zero liability policy is a provision in credit card contracts, which states that the credit card company won’t hold the cardholder responsible for unauthorized transactions made on the credit card.
With the Milestone Credit Card, you can also get a cash advance. The credit card company will mail you a personal identification number (PIN) to let you access cash at ATMs.
You can also access your account online 24/7 on your computer or mobile device.
Let’s compare the advantages and disadvantages of the Milestone Credit Card.
Here’s a closer look at some of the benefits of this credit-building card:
- Report to a Major Credit Bureau - Bank of Missouri is a trusted financial institution and reports your account history to all three major credit bureaus - Equifax, Experian, and TransUnion.
Monthly reporting to a major credit bureau will help anyone with poor credit build their credit profile as it gains recognition. With responsible use, over time you can raise your credit score by a couple hundred points.
- No Security Deposit Required - Most options designed to help people build a positive credit history require you to make a refundable security deposit. A card of this sort is referred to as a secured credit card.
A secured credit card typically charges a security deposit amount equal to the card’s actual credit limit. But because the Milestone Gold Mastercard is an unsecured credit card, you won’t need to put down any money for a security deposit upfront.
- Convenient Prequalification - Prequalification for the Milestone Gold Mastercard will only result in a soft credit inquiry, meaning it won't negatively impact your credit score.
When you submit a full credit card application for the Milestone Gold Card, you’ll likely have a hard pull on your credit report. A hard pull could temporarily lower your credit score.
- Identity Theft Monitoring - You'll have access to identity theft resolution services through your Milestone Credit Card to counter unusual activity that could be signs of identity theft.
The Milestone Gold Mastercard also protects your social security number, email address, bank account login information, and credit and debit cards.
Here’s a look at some of the limitations of this credit building card:
- Low Credit Limit - Once you're approved for the Milestone Gold Mastercard, you’ll have access to a minimum credit limit of $300 and there is no way of knowing how much bigger of a credit line you can get until your application is approved. Keep in mind that the annual fee is deducted from the credit line and as a result, cardholders might have less than $300 worth of credit for the first billing cycle of each year starting the first month of card membership.
Milestone also doesn’t specify if there will be a credit limit increase after a period of time.
The uncertainty of a credit limit increase can result in a high credit utilization ratio which affects the rate at which you can get your credit score up.
Note: If you’re looking for a high credit limit, you might want to opt for a secured card.
- No Reward Points or Welcome Offer - Like most cards in the same category, the Milestone Gold Mastercard doesn’t have a reward points system. There are no cash back rewards or redeemable points. Nor is there any welcome offer for new cardholders to take advantage of.
Let’s now look at some alternative cards to consider:
While the Milestone Gold Mastercard has a low credit limit and doesn’t have a rewards scheme, it shouldn’t matter too much to the right cardholder.
Remember, this isn’t a card for someone with an impressive credit history or a perfect credit score. This is a decent option for folks on their way to build a positive payment history and establish a positive credit profile.
By establishing good financial habits and paying your balance off on time you can slowly but surely work your way towards a prime credit card.
You can apply for this card here.