Milestone Mastercard^® Review

The Milestone Mastercard^® may be a good fit if you’ve had challenges with your credit history and are working towards building your credit profile. This card is easy to get approved for and requires no deposit, which prevents you from having to tie up additional funds. Plus, it reports your credit activity to the three major credit bureaus (Equifax, Experian and TransUnion).

That said, there’s an annual fee — which will reduce the amount of your initial line of credit — and no rewards program.

So while this card may seem appealing at first glance if you have bad credit or no credit, there are better options available that offer credit-building tools and rewards on every purchase without charging an annual fee.

• No security deposit required

  The Milestone Mastercard^® is an unsecured card, meaning you won’t have to put down a security deposit in order to own the card. This can be helpful in getting started with credit building without having to spend extra upfront to do so.

  Secured credit cards are another useful tool that can help you build credit. They work similarly to unsecured cards, but will require a small deposit (often starting at $200) that becomes your line of credit.

• Reports to the three major credit bureaus

  The Milestone Mastercard^® reports your account and payment activity to all three major credit bureaus (Equifax, Experian and TransUnion). This is extremely beneficial if you’re looking to repair or build your credit, since payment history is the most important factor making up your credit score.

• Annual Fee

  Your annual fee — which can range from $35 to $99 — is determined based on which version of this card you’re approved for.

  But beware, the annual fee will reduce the amount of your initial credit limit. So for example, if you receive a credit line of $300 and an annual fee of $59, the amount of your initial line of credit will be $241.

  If you’re looking to avoid an annual fee entirely, it would be worth it to check out a secured card. Secured cards require a security deposit, but they usually come with no annual fee, as well as additional benefits that can provide enough value to justify the deposit.

• No intro APR

  This card doesn’t offer an intro APR on purchases — so if you plan to carry a balance from month to month, you’ll be subject to an APR: See terms.

  That said, credit cards for those with bad credit typically don’t offer a 0% intro APR on purchases or balance transfers. In fact, they often have a higher ongoing APR than that of the Milestone Mastercard^®.

• No rewards program

  The Milestone Mastercard^® doesn’t offer a sign-up bonus or rewards for the purchases you make.

  If you’re looking to earn rewards, there are credit cards for bad credit available that offer rewards programs; however, they’ll likely be secured cards that require a deposit.

  Keep the following in mind, though — when trying to build credit, it’s best to focus on making on time payments and keeping your credit utilization ratio low rather than racking up rewards.

• Credit limit could be low

  With the Milestone Mastercard^®, your credit limit could be as low as $300 — plus, additional fees, like the annual fee, will further reduce the amount of your initial line of credit.

  This card doesn’t specify if you’ll be able to increase your credit limit over time, but there are cards available that offer more clarity. For example, the Capital One Platinum Credit Card will automatically begin reviewing your account starting at six months to see if you’re eligible for credit limit increases.

Milestone Mastercard^® vs. Discover it^® Secured Credit Card

If you’d prefer a secured card that offers cash back on every purchase and charges a $0 annual fee, the Discover it^® Secured Credit Card will be a better fit.

You’ll 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically Plus, Discover will match all the cash back you’ve earned at the end of your first year.

There’s no annual fee, but this card does require a deposit ranging from $200 to $2,500, which will serve as your line of credit. Still, you’ll get the opportunity to graduate to an unsecured card and get your deposit back after using the card responsibly for seven months.

There’s also no penalty APR, and the late fee is none the first time you pay late. After that, up to $41.

The Milestone Mastercard^® is a decent option if you want to repair or build your credit with the help of a nonsecured credit card. But keep in mind that there are better options out there that are more straightforward about the costs associated with the card, have fewer fees and provide higher credit limits.

The Discover it^® Secured Credit Card provides tools to help boost your credit profile without charging an annual fee. Plus, it earns rewards and provides the opportunity to graduate to an unsecured card and get your deposit back after seven months.