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Milestone Credit Card Review: A Comprehensive Guide for Credit Builders
The Milestone Credit Card is an unsecured credit card specifically designed for individuals with less-than-perfect credit history who want to rebuild their credit profile. Unlike secured cards like the Citi Secured Mastercard, this card doesn't require a security deposit or cash deposit to get started, making it an accessible option for many consumers.
What Is the Milestone Credit Card?
The Milestone Credit Card is an unsecured credit card issued by The Bank of Missouri that reports to all three major credit bureaus - Experian, Equifax, and TransUnion. This card serves as a stepping stone for individuals looking to improve their credit scores through responsible credit use and consistent payment history.
Milestone Credit Card Pros & Cons
Let's examine the key advantages and disadvantages of this credit-building card:
Pros:
- No security deposit required
- Reports to all three credit bureaus
- Pre-qualification available without impacting your credit score
- Accessible for fair to poor credit scores
- Quick application process with fast approval decisions
Cons:
- Higher annual fee compared to secured cards
- Relatively high interest rate
- Limited credit limit range
- No rewards program or cash back
- Potential for additional fees
Who Is the Milestone Credit Card For?
The Milestone Credit Card is ideal for individuals who:
- Have a credit score range between 300 and 650
- Want to avoid putting down a security deposit
- Need to build or rebuild their credit profile
- Can't qualify for premium credit cards
- Prefer an unsecured credit card over secured cards
Comparing the Milestone Credit Card with Other Credit Cards
When considering the Milestone Credit Card, it's helpful to compare it with other popular options in the credit builder card category:
Chime Credit Builder Secured Visa® Credit Card:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Credit Builder account
- Key features: No credit check to apply, reports to all three major credit bureaus
- Standout feature: No minimum security deposit required
Capital One Quicksilver Secured Cash Rewards Credit Card (rate & fees):
- Annual fee: $0
- Security deposit: Minimum $200, which becomes your credit limit
- Key features: 1.5% cash back on all purchases, automatic credit line reviews
- Standout feature: Earn rewards while building credit
Current Build Visa® Credit Card:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Build account
- Key features: No credit check required, reports to all three major credit bureaus
- Standout feature: Linked to Current banking app for easy fund transfers
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- Milestone Credit Card excels in [specific area]
- Chime Credit Builder offers flexibility with no minimum deposit
- Capital One Quicksilver Secured provides cash back rewards
- Current Build integrates with banking app for convenient use
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Important Features and Considerations
Credit Limit and Utilization:
The average credit limit typically ranges from $300 to $700, based on your credit profile. It's crucial to maintain a low credit utilization ratio (preferably below 30%) to optimize your credit-building efforts.
Fees and Rates:
- First-year fee varies based on creditworthiness
- Annual fee after the first year
- Late payment fee applies
- Returned payment fee
- Penalty APR may be triggered by missed payments
- Payment frequency: Monthly
Credit Monitoring and Reporting:
The card reports payment history and credit utilization to all three major credit bureaus, helping you build your credit history with responsible use.
Consider Using Kudos
To maximize the benefits of your Milestone Credit Card and other credit cards, consider downloading Kudos, a free AI-powered browser extension. Kudos helps you:
- Track your available credit across all cards
- Optimize your credit utilization
- Get personalized credit card recommendations
- Earn enhanced rewards at over 15,000 stores
Plus, new users can get $20 back after their first eligible purchase using code "GET20" at checkout when shopping with a Boost merchant.
Our Expert Takeaway
The Milestone Credit Card serves its purpose as a credit-building tool for those with less-than-perfect credit history. While it comes with higher fees and interest rates, it provides an opportunity to build credit without a security deposit. Consider this card a temporary stepping stone toward better credit cards as your credit profile improves.
Milestone Credit Card FAQ
What credit score do you need for the Milestone Credit Card?
Most applicants with credit scores between 300 and 650 may qualify for this card.
Is the Milestone Credit Card secured or unsecured?
The Milestone Credit Card is an unsecured credit card, meaning no security deposit is required.
What is the typical credit limit for the Milestone Credit Card?
Initial credit limits typically range from $300 to $700, based on your credit profile.
Does the Milestone Credit Card help build credit?
Yes, the card reports to all three major credit bureaus, helping you build credit with responsible use.
What are the annual fees for the Milestone Credit Card?
Annual fees vary based on creditworthiness and may change after the first year.
Can I get a credit limit increase with the Milestone Credit Card?
Yes, you may become eligible for a credit limit increase after demonstrating responsible card use and making consistent on-time payments.
Supercharge Your Credit Cards
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
