I Reviewed the Milestone® Mastercard® to Find Out If Its Credit-Building Tools Outweigh the Fees

While a low income and a low credit score don’t always go hand-in-hand, there’s a fair chance that if your score starts with a six (or less), you’re also living paycheck to paycheck. 

If that sounds familiar, you may benefit from a credit card that can help you boost your score by proving your responsibility. But since your credit score is low, your access to credit cards can be limited. 

Sounds pretty frustrating, right? I mean, how do you break out of that cycle?

The Milestone® Mastercard® is designed for people with bad credit, and if you use it right, it can help you build credit while keeping your debt low.

But before you decide to get it, I’m going to show you everything you need to know, including what the application process entails and which other cards are worth considering. 

I’ll also show you the right way to use it, so you can decide whether you can handle the Milestone® Mastercard® (and its fees) and emerge with a better credit score and less debt, or if you should try something else.

The Milestone® Mastercard® is issued by The Bank of Missouri and serviced by Concora Credit. The card was designed as an accessible option for consumers with a poor or limited credit history.

As far as bells and whistles, you shouldn’t expect many, but it does offer an unsecured credit line for those who want more flexibility and don’t want to put down a security deposit. And the credit limit you qualify for will depend on your credit profile.

An Unsecured Credit Line

Many credit cards designed for consumers with a blemished credit history are secured accounts that require you to put down a security deposit as collateral. The security deposit becomes your initial credit line and will be used by the credit card company if you don’t pay your bill.

Milestone® Mastercard®

APPLY HERE »

• Guaranteed $700 credit limit if approved.
• Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
• Don’t Have Perfect Credit? No Problem!
• Join over a million consumers who are working on building their access to credit.
• Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
• Get the credit you deserve, even with less-than-perfect history.
• No security deposit, and a path to better credit.

Show MoreShow Less See application, terms, and details. »

Our Rating

Milestone® Mastercard®

4.4/5.0

About this rating

BadCredit.org’s credit card ratings are calculated by our financial experts based on key criteria including APRs, fees, and approval odds. We also consider factors such as customer service and cardholder benefits. Our ratings are unbiased and regularly updated.

Ashley Fricker Senior Editor

Close

★★★★★

4.4

Application Length	Interest Rate	Reports Monthly	Reputation Score
8 minutes	See terms	Yes	9.0/10

The Milestone® Mastercard® is an unsecured credit card, which means you won’t have to put down a security deposit to use it and can keep your cash in the bank. That also means your initial credit line will be based on your creditworthiness and other criteria set by the card issuer.

Now, if you miss a payment by 30 days on an unsecured credit card, there’s no security deposit to satisfy your debt. So, it will go on your credit report and likely drop your score even more.

That’s why it is extra important to be responsible with an unsecured credit card.

Potential Credit Limit

The initial credit limit for the Milestone® Mastercard® is guaranteed to be at least $700. That is a lot higher than the starting limits for similar cards, which can be as low as $300. Other than $700, the most common starting limit for the Milestone® Mastercard® is $1,000.

Unlike some cards in this category that offer automatic credit line reviews after six months or the opportunity to earn a bump in spending power with several on-time payments, this account doesn’t have a clearly defined path for credit limit increases. 

You can try asking for an increase after you’ve had the card for a while, but there’s no guarantee you’ll receive one. And that goes for any card that allows credit limit increase requests.

Credit Bureau Reporting

This is one of the least exciting, but most important, features of any credit card that you’re using to build your score. 

All account activity on your Milestone® Mastercard® is reported to all three consumer credit bureaus: TransUnion, Equifax, and Experian. That means you can feed your credit reports positive information every month.

And that positive information ends up being factored into your credit scores, which you can see rise steadily over time.  A lengthy track record of on-time payments and low account balances could lead to a big-time credit score boost.

But know that credit reporting also works the other way. So, if you make late payments and max out your card, you could see a big-time drop.

Mobile App and Customer Support

You can manage the Milestone® Mastercard® on your mobile device through the Concora Credit app. It’s available 24/7, and covers all the cards the account servicer oversees (including the Milestone® Mastercard®). You can use it to:

• Activate your card.
• Make a payment.
• See your current balance, recent transactions, minimum payment due, and payment due date.
• Review your account statements.

The app won’t show your current credit score or offer credit-building tools or advice, but it does do the basics.

After checking the card’s mobile app, I decided to call the customer service department at 1-800-305-0330 around 2:45 PM ET on a Monday. And just note that representatives are only available from 6 AM to 6 PM PT, Monday through Friday.)

I went through several automated prompts, but within two minutes, a friendly representative was on the line. She informed me that you can’t apply for a card over the phone and that the servicer looks at credit score and income when evaluating an account for a credit line increase (if it’s eligible for one). 

I was off the phone within five minutes and found the overall experience to be positive.

It’s common for credit cards in this category to have high annual percentage rates (APR) and charge annual fees. That’s because the issuer is taking a risk on someone who may not have a history of financial responsibility.

The Milestone® Mastercard® is no different, and here’s a breakdown of what you can expect to pay and when:

• APR: If you carry a balance from month to month on purchases or cash advances, it will cost you a whopping 35.9% APR (which is about as high as it gets in the credit card world today). Fortunately, you can avoid incurring interest charges by paying your credit card balance in full every month. 
• Annual Fee: As soon as you open your account, you’ll pay the $175 annual fee, which immediately reduces your spending power by that amount. If your initial credit line is only $700, you’ll only have $525 worth of purchasing power. The good news is that the annual fee drops to $49 for year two (and beyond), but another fee kicks in at the same time.
• Monthly Maintenance Fee: Starting in year two, you’ll get charged a $12.50 monthly maintenance fee, which adds up to $150. So, even with a lower annual fee, you’ll still pay nearly $200 per year. Now, if your credit score is skyrocketing, this may very well be worth it. But you’ll have to decide how long paying these fees will be helpful.
• Foreign Transaction Fee: If you use your card in a different country, you’ll get charged a 1% foreign transaction fee. So, if you buy a $100 souvenir in the museum abroad, you’ll see a $1 fee on your statement.
• Cash Advance Fee: If you need cash in a hurry, you can use your Milestone® Mastercard® at an ATM and get it. However, be prepared to pay the greater of $5 or 5% of the advanced amount for the convenience. And it’ll show up immediately.
• Late Payment Fee: Paying your credit card bill on time is good for your credit score and your wallet. If you make your payment after the due date, you’ll get charged a late fee of up to $41. You’ll also get charged up to $41 if your payment doesn’t clear or if you go over your credit limit. 

The Bank of Missouri doesn’t say what credit score you need to get approved for the Milestone® Mastercard®. But with a quick internet search, I found stories of people who matched to this and similar cards, with scores around 570 (the higher end of FICO’s poor credit range).

But the Milestone® Mastercard® is much clearer about some other eligibility requirements. For example, you must:

• Be age 18 or older.
• Have a valid Social Security number (SSN).
• Have a valid physical address in the United States.
• Have a valid Internet Protocol (IP) address.

In addition, you can’t be an existing cardholder or have had one of these accounts charged off due to non-payment. 

You can’t pre-qualify for the Milestone® Mastercard®, but it’s still low-risk to apply. Your credit report will only show a hard inquiry if you’re approved for the account, so your credit score won’t get dinged if you’re declined.

The card has one of the simplest application processes I’ve ever seen. If you got an offer code in the mail, start here. 

Since I didn’t have a code, I started on the Milestone® Mastercard® website. This is every step I went through in the application, which I stopped just short of submitting because I didn’t want to actually apply.

Step 1: Detailed Personal Information

This application is very fast, and a big part of that is Step 1. It includes the bulk of the information the application asks for.

I enter my:

• Name.
• Home address.
• Email address.
• Phone number.
• Date of birth.
• SSN.
• Monthly income.
• Monthly expenses.

The card issuer needs this information to verify my identity, prevent the opening of fraudulent accounts, and assess my ability to repay the debt.

Step 2: Accept or Decline Over Limit Coverage

I declined the Overlimit Coverage because if I did get this card, I’d be careful to stay within my limit. You can accept or decline the coverage, but you should read all of the program’s terms before deciding. 

The highlights: While the coverage may allow a transaction to go through that puts you over your limit (instead of it automatically getting declined), you’ll still have to pay up to a $41 overlimit fee. You could get charged multiple overlimit fees if you don’t quickly bring your balance under your limit.

Step 3: Accept or Decline Credit Protection

Depending on your situation, you may want to accept Credit Protection because it could cancel your minimum payment for a set number of months or your entire account balance if you:

• Get laid off.
• Become disabled.
• Die.

The coverage costs $1.49 for every $100 worth of balance you carry each month. Definitely read the full terms before making your selection.

Step 4: Review Terms & Conditions

I read the terms and conditions of the card carefully. I had to, so I could write this review. 

You should take note of the interest rate, fees, and any other information you need to remember about the account. You can download the document for future reference. 

Knowing myself, I’d probably never look at it again, but you do you!

Step 5: Read Disclosures, Agree, and Submit

I reviewed the information I entered above to ensure there were no errors. You can make changes if necessary.

I also read the statements on the screen. By applying for the card, you’re agreeing:

• That you were honest on your application.
• That your credit and identity may be verified in various ways.
• To the account terms and conditions.
• That a hard inquiry will appear on your credit report if you’re approved for the card.

The next thing I did was click on the link to read the Consent to Electronic Communications. I agreed to get my account disclosures electronically by clicking “Accept”.

From here, you’ll need to click “Accept” or “Decline.” Then, click “Submit Application.”

That’s it. Easy, right? If you’re approved, you should get your new card within 14 days.

The Milestone® Mastercard® isn’t for everyone, so let’s talk about who should apply for an account and who might want to think about other options.

This card may be right for you if you:

• Really need an unsecured credit line and can’t qualify for anything better.
• Don’t plan to carry a balance.
• Have a clear strategy for building (or rebuilding) your credit profile so you can qualify for a credit card with better terms ASAP.

On the other hand, this card probably shouldn’t be on your radar if you:

• Don’t have an immediate need for a credit card, or can qualify for an account with fewer fees and more benefits.
• Think you’ll often carry a high balance.
• Haven’t thought about what financial moves to make after opening the account.

Which list best describes your situation?

As with any financial tool, the Milestone® Mastercard® has its pros and cons. Compared to other credit cards in the credit-building category, this account seems to reside right in the middle.

Only you can decide if the upsides of the card outweigh the downsides. But when you factor in how this card could help — or hinder — your finances, you’ll know exactly which way you lean.

When you’re shopping for a credit card, it’s wise to compare several options before applying. Here are two you should take a look at:

Secured Self Visa® Credit Card

APPLY HERE »

• The secured Self Visa® Credit Card* requires no credit check or minimum score.
• Reports to all 3 major credit bureaus to establish and build credit, with free access to your credit score.
• Secure your credit line with a refundable security deposit as low as $100.**
• Deposits are returned upon account closure after settling outstanding balances.
• *The secured Self Visa® Credit Card is issued by Lead Bank, Sunrise Banks, N.A., or First Century Bank, N.A., each Member FDIC.
• **Qualification for the secured Self Visa® Credit Card is based on meeting eligibility requirements, including income and expense requirements and establishment of security interest. Criteria subject to change.

Show MoreShow Less See application, terms, and details. »

Our Rating

Secured Self Visa® Credit Card

4.7/5.0

About this rating

BadCredit.org’s credit card ratings are calculated by our financial experts based on key criteria including APRs, fees, and approval odds. We also consider factors such as customer service and cardholder benefits. Our ratings are unbiased and regularly updated.

Ashley Fricker Senior Editor

Close

★★★★★

4.7

Application Length	Interest Rate	Reports Monthly	Reputation Score
3+ minutes	27.49% Variable APR	Yes	9.5/10

The Secured Self Visa® Credit Card has no annual fee and a 27.49% variable APR. This card is designed to help you build credit, and it doesn’t require a credit check or a minimum score.

Plus, Self reports your activity to all three major credit bureaus to help you feed positive data to your reports. While you’re a cardholder, you also have access to your free credit score to track your credit-building progress

So, what’s the catch? Since this is a secured credit card, you’ll have to put down a refundable deposit of at least $100 to serve as collateral in case you don’t pay your bill.

Capital One Platinum Credit Card

If you want to avoid the secured credit card route, the Capital One Platinum card may be a smart choice. It has no annual or foreign fees and a variable APR of 28.99% (at the time of writing).

While you can’t earn rewards with this account, you can access your credit score and credit-building tools for free. Plus, Capital One will start reviewing your account for credit line increase eligibility after you’ve been a cardholder for six months.

The kicker? This card is slightly harder to qualify for, so if your credit score is in the basement, your application may get denied.

The Milestone® Mastercard® is a simple tool with a very straightforward proposition. It’s an unsecured credit card that can help you build credit and can provide a credit limit that may give you some financial breathing room (or a safety net).

I’d recommend it to anyone who has bad credit and wants to avoid an upfront security deposit. But you should also have a plan and understand the costs. While annual fees and high interest rates are common for products like this, you still don’t want them busting your budget or skyrocketing your credit utilization ratio.

I’d recommend it to anyone who has bad credit and wants to avoid an upfront security deposit. But you should also have a plan and understand the costs.

But if you’re in a better financial situation, I’d encourage you to pursue a cheaper way to build credit. You could consider opening a secured credit card account with a refundable security deposit. 

With responsible use, the Milestone® Mastercard® can certainly play a role in boosting your credit score and putting you in a position for better credit products. But I’d recommend keeping it for no more than two years.

After that, you should have good enough credit to move forward, or enough information to know that you need to try something else.