EDITOR’S RATING
PROS
- No processing or monthly fees
- Available to people with bad credit, even a previous bankruptcy
- Relatively low APR for the segment
CONS
- $35-$99 Annual fee
Milestone Credit Card Review Summary
The Milestone Credit Card is a pretty good unsecured credit card for people with bad credit. The Milestone Mastercard has a $300 credit limit, does not require users to place a refundable security deposit, and charges lower fees than many other credit cards for building or rebuilding credit.
This card is far from perfect, however. The spending power it provides is initially diminished to as little as $225 by a first-year annual fee of $35 to $75, which could rise to $99 beginning in the second year. The Milestone Card’s APR is quite high as well.
In other words, your decision regarding this card ultimately comes down to how badly you need to borrow $225 to $265 and how quickly you’ll be able to repay your resulting balance. You can find more information to help you decide whether or not to apply for the Milestone Credit Card below.
Milestone Credit Card Review Highlights
Available To People With Very Bad Credit
Numerous credit cards offer approval to people with bad credit, but few will do business with the worst of the bunch. Someone with a bankruptcy on his or her credit report may even have trouble getting a secured credit card. But such a blemish is fine as far as Milestone® is concerned, which is quite important when you consider that credit cards are by far the best credit-rebuilding tools available to consumers.
Up To $265 In Initial Spending Power
The Milestone® Mastercard®’s standard starting credit line is $300. You won’t initially have access to that full amount, however, as a $35 to $75 annual fee will consume a chunk of that immediately upon opening your account. But if you need $225 to $265 for an emergency expense and can’t come up with the cash, this unsecured credit line could be quite valuable, especially if it proves to be your cheapest option.
Relatively Low APR
Make no mistake, the regular APR is by no means inexpensive. And neither the 17.87% average APR for all new credit-card offers nor the 16.63% average for secured cards, according to WalletHub’s latest Credit Card Landscape Report, provides a positive basis for comparison. But you have to remember what the Milestone® is competing with: the absolute highest APRs on the market. The average for this niche segment actually is 23.91%, according to WalletHub data, which puts this Milestone® Mastercard® in a more golden light.
Milestone Credit Card Review Lowlights
$35-$99 Annual Fee
The first year you have this card, you will have to pay an annual fee that could range anywhere from $35 to $75, depending on the particulars of your credit history. If this card doesn’t help your credit score improve in order to graduate to a less expensive offer after those first 12 months, the ceiling on your annual fee will rise to $99 if you paid $75 the first year. At the end of the day, such a potentially hefty cost has to be considered a negative. But, again, this card is relatively cheap compared to some of its unsecured competition, especially if you’re assigned fees at the low end of the scale.
Other Things To Consider About The Milestone Credit Card
“Pre-Qualification” Is A Prerequisite
It’s important to note that you can’t simply apply for the Milestone® Mastercard®. You have to pre-qualify first. The good thing about this initial screening process, intended to weed out applicants with certain red flags on their credit records, is that it requires only a “soft” credit inquiry. That means people who don’t stand a chance of approval, for one reason or another, won’t need to worsen their situation with a hard inquiry followed by rejection.
No “Processing” Or Monthly Fees
Some unsecured cards for people with bad credit skirt first-year-fee regulations by charging so-called “processing” fees, payment of which is a precondition of account opening. Many cards in this segment also feint consumers by reducing their annual fees after the first year, while actually increasing overall costs with the institution of a new monthly fee. Milestone® stoops to neither practice, which should make your wallet very happy.
Security-Deposit Savings
You ultimately need to determine whether you really need an unsecured credit line or simply want to avoid placing a security deposit on a secured card. On the one hand, you won’t have to give up precious liquidity with an unsecured card. But on the other hand, such a card will wind up costing you much more in the long run, considering fees are not refundable like security deposits. So just make sure to weigh these pros and cons within the context of your personal situation before submitting an application.
Relatively Low Foreign-Transaction Fee
This particular aspect of the offer is likely immaterial to you, considering the modest credit limit you’ll get and the high costs associated with it. But it still bears mentioning that Milestone®’s foreign fee, a mere 1%, is not only lower than what its competitors charge (3% for the most part) but also below the market average of 1.5%.
Milestone Credit Card vs. The Competition
| Info | Milestone® Mastercard® - Less Than Perfect Credit Considered | First PREMIER® Bank Mastercard Credit Card | Credit One Bank® Visa® Credit Card | Secured Mastercard® from Capital One |
|---|---|---|---|---|
| Annual Fee | $35 - $99* | $75 - $125 1st yr, $45 - $49 after | $0 - $99 | $0 |
| Rewards Bonus | N/A | N/A | N/A | N/A |
| Rewards Rate | N/A | N/A | 0 - 1% Cash Back | N/A |
| Purchase Intro APR | N/A | N/A | N/A | N/A |
| Transfer Intro APR | N/A | N/A | N/A | N/A |
| Regular APR | 24.9% | 36% | 17.99% - 23.99% (V) | 26.99% (V) |
| Editors' Rating | 3.0 / 5 | 1.0 / 5 | 3.0 / 5 | 5.0 / 5 |
| Details, Rates & Fees | Learn More | Learn More | Learn More | Learn More |
