There's no need for a security deposit, but are the fees worth it? The Bank of Missouri's Milestone Gold Mastercard is an unsecured credit card that can help you establish or rebuild your credit history. Nevertheless, the cost of using the card could rise depending on your credit situation and usage patterns. Building or rebuilding credit takes time, and putting down a few hundred dollars for a secured credit card deposit and not knowing when you'll get it back can be stressful. The Milestone credit card does not require a security deposit and can be applied for with bad, limited, or no credit. Depending on your credit profile, your annual fee could be $35 for the first year, $75 for the second year, and $99 for the third year.
Pros
- There is no requirement for a security deposit.
- With bad, limited, or no credit, you may be approved.
- Fixed Annual Percentage Rate
Cons
- Possibility of a high annual fee
- There is no incentive program.
- Credit limit is low.
Explained Advantages
There is no need for a security deposit: You will not be required to put up any money in order to be approved for the card. The Milestone credit card can be very appealing if you're living paycheck to paycheck, don't have any savings you can part with, and need to build credit. With bad, limited, or no credit, you might be approved: When you're new to credit or trying to repair a bad credit history, getting a credit card can be difficult. Without affecting their credit score, anyone can see if they're pre-qualified for the Milestone credit card. Fixed APR: The interest rate on the card remains constant regardless of the prime rate. (The prime rate is used to calculate variable interest rates.) That doesn't mean the rate won't change in the future; however, your credit card company will have to notify you if it does.The Drawbacks are Expounded
The fee structures on this card are varied, which could result in a high annual fee. Depending on your credit profile, you may be charged a $35 annual fee, followed by a $35 fee, or $75, followed by a $99 fee. Rewards might not be your top priority if your main objective is to repair your credit. However, if you want both, you can get them with some other cards. Low credit limit: The Milestone Gold Mastercard has a credit limit of $300, which includes the set-up fee and annual fee. As a result, you might only have $225 in available credit when you first get your card. That's a terrible score to have, especially if you're trying to raise it. With most secured credit cards, if you have the money for a security deposit, you may be able to get a higher credit limit. Warning: Keeping your credit utilization rate low is the best thing you can do for your credit score, aside from making on-time credit card payments. This means using as little of your available credit as possible, which can be difficult when your credit limit is low. Most competitors have both a mobile app and 24/7 customer service, but Milestone Mastercard does not. Customer service can be reached by phone at 866-453-2636 or by email. While the card can help you establish a credit history, it doesn't give you access to your credit score so you can track your progress.Features of Security
The security features on the Milestone credit card are industry standard. Fees on the Milestone Gold Mastercard that Stand Out For the most part, the Milestone credit card's fees aren't entirely out of line with industry standards. However, there are some exceptions. For example, the annual fee on some of the better credit cards for bad credit on the market can be significantly higher. On the other hand, the card's 1 percent foreign transaction fee is lower than the standard 3 percent fee charged by other cards. You should also be aware of the cost of a cash advance. The fee is either $5 or 5% of the total transaction amount, whichever is higher. The Milestone Gold Mastercard also charges an over-limit fee of up to $40. Many credit cards don't charge this fee, which occurs when your balance exceeds your credit limit.