If you’re on the hunt for a credit card to give your credit score a boost or fix up a bit of a credit mess, you’ve probably stumbled upon the Milestone credit card. This card is tailor-made for folks with not-so-great credit or a limited credit history who just want an unsecured credit card without shelling out a security deposit. But, is the Milestone credit card really worth your while? Well, we’re about to dive into that in this blog post.
Pros of the Milestone Credit Card
- Easy to qualify: The Milestone credit card has low credit requirements and accepts applicants with bad or no credit. You can also check if you pre-qualify for the card without affecting your credit score.
- No security deposit: the Milestone credit card doesn’t make you do the whole security deposit dance. You know, that painful moment when you fork over your hard-earned cash just to get a credit card? Yeah, they skip that part. With Milestone, you can open an account without tying up your money in a card that might not give you much in return. It’s like a sigh of relief for your wallet.
Mastercard benefits: Now, this is where it gets interesting. The Milestone credit card is like the cool kid on the block because it’s a Mastercard. That means you can flash it at any place that accepts Mastercard. But wait, there’s more! You also get some sweet perks from Mastercard, like protection against identity theft (because who needs more stress in life?), an extended warranty for those gadgets that always seem to break right after the manufacturer’s warranty expires, and price protection
Cons of the Milestone Credit Card
High annual fee: Alright, let’s talk about the not-so-fun part. The Milestone credit card has this annual fee, and it’s not a tiny one. Depending on how creditworthy they think you are, you’re looking at a fee ranging from $35 to $99. Ouch, right? Here’s the kicker – they deduct this fee from your initial credit limit. So, you start off with less available credit, which makes it a bit tougher to use. Plus, it kind of takes a chunk out of the card’s overall value. You know how it goes, the more fees, the merrier, but not really. It can also make it trickier to pay off your balance.
High APR: Now, about that APR thing. The Milestone credit card comes with a purchase APR of 24.9%. Hold on to your wallet because that’s quite a bit higher than the average APR you’d find on most credit cards. If you’re not in the habit of clearing your balance each month, this high APR can sneak up on you, and you’ll end up shelling out a good chunk of change in interest. So, the tip here is to try and pay your bill in full every month, unless you’re looking to give the credit card company a little extra something in interest charges.
- Low credit limit: The Milestone credit card has a low initial credit limit of $300, which can be further reduced by the annual fee and any other fees or charges. This means you have very little room to make purchases and improve your credit utilization ratio, which is an important factor in your credit score. You also have to be careful not to go over your limit, as this will incur an overlimit fee of $40
No rewards or perks: Alright, so here’s the deal with the Milestone credit card – it’s not throwing any parties in the form of rewards or perks. When you use this card, you’re not earning any cool stuff like cash back, points, or miles. There are no discounts, freebies, or VIP passes to exclusive events. Nope, none of that.
The only silver lining in this cloud is that it gives you the chance to work on your credit history by being all responsible and making your payments on time. So, while it won’t shower you with gifts, it can help you level up your credit game
Alternatives to the Milestone Credit Card
Petal® 2 Visa® Credit Card: So, if you’re someone who’s starting your credit journey or simply want to dodge those pesky fees, the Petal® 2 Visa® Credit Card might just be your match made in heaven. This card doesn’t ask for an annual fee, foreign transaction fees, late fees, or overlimit fees. It’s like a fee-free oasis. And here’s the sweet part – they have a cashback program that cheers you on for paying on time and being responsible with your spending. You start with a cool 1% cash back on all purchases, and if you’re rocking 12 on-time monthly payments, they bump it up to 1.5%. Talk about rewards for being financially savvy!
Capital One Platinum Credit Card: Now, if your credit is somewhere in the fair to average zone and you’re looking to boost it up a bit, the Capital One Platinum Credit Card might be your trusty sidekick. Just like your trusty sidekick, it doesn’t charge an annual fee or foreign transaction fees. But here’s the cool part – you get access to CreditWise®, a nifty tool to keep an eye on your credit score and get personalized tips to make it even shinier. Plus, after keeping it cool with your first five monthly payments, you might be in for a credit line upgrade. It’s like leveling up in the credit game.
Discover it® Secured Credit Card: If you’re up for a bit of a security deposit adventure and want some rewards along the way, the Discover it® Secured Credit Card could be your jam. You’ll need to put down a minimum of $200, which is like your golden ticket to a credit limit. And the fun doesn’t stop there. You get 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and a solid 1% cash back on everything else. Oh, and here’s the cherry on top – Discover will match all the cash back you’ve earned at the end of your first year.
he Milestone credit card, it’s kind of like that friend who’s got your back when it comes to building or rebuilding your credit. If you play your cards right (pun intended), it can help boost your credit history. But, like every friend, it’s got its quirks.
First off, it’s got this annual fee that’s not exactly pocket change. The APR isn’t a small number either, and the credit limit might make you feel like you’re tiptoeing around it. Plus, there are no rewards or perks to sweeten the deal.
Before jumping in, it’s smart to weigh the good and the not-so-great. Take a look at some alternatives out there because you might just find a card that’s a better fit for your needs and goals.