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359 reviews from verified cardholders

2.4

Rating: 2.4 out of 5.

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Great for access to unsecured credit

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Annual fee: $75 the first year; $99 thereafter

This content is curated by Intuit Credit Karma’s Editorial team using data from members who were approved for this card or similar cards, or who self-matched this card or similar cards. Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse this content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Member stats

Updated daily

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58.9%

Average credit utilization (or what percent of the card’s credit limit is being used) of members who matched with this card or similar cards.

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47 years

Average age of members who matched this card or similar cards.

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$72,508

Average annual income of members who matched this card or similar cards. Note: Income may be estimated for some members by Credit Karma and may differ from members’ actual incomes.

Card highlights

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Considers people who have little, no or negative credit history

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No security deposit required

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Applying for prequalification won’t affect your credit scores

Milestone® Mastercard® review: Worth the fees?

Updated April 11, 2024

This date may not reflect recent changes in individual terms.

Written by: Jennifer Brozic

Jennifer Brozic is a personal finance writer and has written for Citi.

Pros

• Considers people who have little, no or negative credit history
• No security deposit required
• Applying for prequalification won’t affect your credit scores

Cons

• High purchase and penalty APRs
• Potential for a low credit limit
• Annual fee
• Possible fees for late payments, going over your credit limit and returned payments

What you need to know about the Milestone® Mastercard®

The Milestone® Mastercard® is an unsecured credit card that’s designed for people who have little or no credit history or who have some credit negatives. If you’re careful about how much you charge and make sure to pay your bills on time and in full, you could use it to build your credit. But there are a few things to know before you apply.

Reports to credit bureaus

As the issuer of the card, The Bank of Missouri will report your payments to the three major credit bureaus: Equifax, Experian and TransUnion. By making your monthly payments on time, you can help build your credit profile.

No security deposit required

Many of the credit cards designed for people working on establishing a solid credit history are secured cards, which require a cash deposit. The amount you put down as your security deposit is then typically equal to the credit limit you have with the card.

Because the Milestone® Mastercard® is an unsecured card, you won’t need to put down a deposit.

Prequalification

You can apply for prequalification for the Milestone® Mastercard® without affecting your credit scores. Getting prequalified is no guarantee of approval, but it can help you decide whether completing a formal application for the card is worth it. If you do submit a full application for the card, you’ll likely have a hard inquiry on your credit reports. A hard inquiry could temporarily lower your scores.

Annual fee

The Milestone® Mastercard® comes with an annual fee of $75 the first year; $99 thereafter (you might see different offers on Credit Karma).

The annual fee will be deducted from your credit line when your account is open. For example, if your credit limit is $300, with the $75 first-year fee, you’ll have $225 in credit available to you.

While many credit-building cards have annual fees, it’s worth noting that there are some cards on the market that don’t. Of course, while some of those cards don’t have annual fees, a number of them are secured cards that do require a security deposit.

The upside of a security deposit versus an annual fee is that you can get your security deposit back at some point, in many cases.

High interest rate and penalty APR

The regular purchase APR on this card is 24.9% for purchases (you might see different offers on Credit Karma). There are no balance transfers available with this card. If you carry a balance, interest charges could add up quickly.

To make matters worse, if you make a single late payment, you could be charged a penalty APR of 29.9% (you might see different offers on Credit Karma) that may remain on your account for as long as it’s open, even if you get your payments back on track.

You could also be charged a fee of up to $40 for late payments, returned payments or exceeding your credit limit.

Low minimum credit limit

The minimum credit limit for the Milestone® Mastercard® is low — just $300 (you might see different offers on Credit Karma). And the annual fee you’ll be charged at account opening will eat into your credit line before you even make a purchase.

With such a low limit, it could be tough to keep your credit utilization — the amount of credit you use compared with what is available to you — low. Your credit utilization ratio is one of the key factors used to calculate your credit scores, so that could make it more difficult to improve your credit.

To help keep your utilization low, consider making payments more than once a month and aim to pay off your balances in full.

Who this card is good for

The Milestone® Mastercard® may be a good option if you have a less-than-perfect credit history and want to work on building your credit profile.

But there are other credit-building cards available, and you may be able to find one with fewer fees or a higher credit limit if you shop around.

Member reviews