Milestone® Mastercard®: Build Credit with No Deposit

Our review of the Milestone® Mastercard®

Establishing a positive credit history with unsecured credit can be challenging – especially if you don’t want a closed-loop store card. The Milestone® Mastercard® offers a straightforward, no-frills tool to help you meet your everyday needs and manage your spending. Plus, as an unsecured card, there’s no security deposit needed.

Milestone may not have the name recognition that larger credit card companies command, but with the power of Mastercard® behind the Milestone card, you can see why this company is fast becoming a household name for applicants with less-than-perfect credit.

Who Can Qualify for the Milestone Mastercard?

People with near-prime or subprime credit scores often struggle to find unsecured credit cards that aren’t store cards or merchandise cards. Options, like Milestone, Indigo, or Destiny, are designed for people with low credit scores or who have not yet established a credit profile. Milestone’s credit criteria are designed to help people who would like a credit card despite their credit standing (or lack thereof), but they cannot guarantee 100% approval.

Application Requirements

Applicants for the Milestone® Mastercard® must:

• Be at least 18 years old,
• Have a physical address (no PO Boxes allowed),
• Be a United States citizen,
• Have a valid Social Security Number (SSN). Applicants with an Individual Taxpayer Identification Number (ITIN) are not allowed.
• Have a valid US IP address,
• Not have had a Milestone Mastercard Account that charged off due to delinquency,

Additionally, applicants must meet additional credit qualification criteria, including a review of their income and debt, plus identity verification requirements.

Credit-Builder Benefits

Once approved, living with the Milestone Card is straightforward. Building credit starts by using the card responsibly. Make small purchases regularly and pay off your balance in full and on time each month. This demonstrates your ability to manage credit wisely. Also, avoid maxing out your card, as keeping your credit utilization low is essential for a good credit score. Finally, be patient and consistent, as building credit takes time. Monitor your credit report regularly to check for errors and ensure your positive payment history is reported accurately.

Cardholders who demonstrate responsible financial behavior may soon see their credit score rise, as Milestone will report card usage to the major credit bureaus each month. Milestone typically reports a few days after the cardholder’s statement billing period ends. To maximize your credit score, pay your balance in full each month.

Mastercard® Benefits

Milestone offers great dedicated resources to help cardholders navigate the world of credit, too. The Milestone card can be used towards cash advances (subject to credit approval) and purchases anywhere Mastercard is accepted. The Mastercard logo can be seen at more than 33 million locations in 210 countries worldwide. This is a big feather in the Milestone Mastercard’s cap, as an unsecured card rarely has this sort of purchasing power.

Cardholders also enjoy basic Mastercard benefits and protections. Like other subprime cards of this style, Milestone provides most of the features of Mastercard Platinum, meaning cardholders:

• Mastercard ID Theft Protection™: Provides thorough identity monitoring covering your social security number, email addresses, debit cards, credit cards, bank accounts, usernames, and passwords for web logins, and much more.
• Zero Liability protection: When you use your Mastercard, have peace of mind knowing that you are not held responsible for unauthorized transactions.

Comparison

The Destiny Mastercard and Indigo Mastercard are two comparable cards to consider. Here’s how the three cards compare across key features:

Annual Fees

All three cards charge a variable annual fee, but only the Indigo Mastercard provides a no annual fee option for particularly qualified applicants. The annual fee with Indigo ranges from $0 to $99 per year, while both Milestone and Destiny feature an annual fee of $75 for the first year and $49 thereafter, though your particular offer may vary.

Starting Credit Limits

All three cards feature similar credit limits, but the Milestone Mastercard and Destiny Mastercard offer a higher starting credit limit for most applicants. These cards both provide a starting limit of $700, while Indigo provides a starting limit of between $300 and $1,000.

Before choosing your next near-prime credit card, carefully compare all aspects of the cards. Compare the terms and conditions of different credit cards to find one that aligns with your needs. Additionally, take into account any fees associated with each card and consider whether they are worth the benefits provided.

Improved Access to Credit Building

One of the standout features of the Milestone Mastercard is its potential approval for individuals with limited credit history or poor credit scores. The card features reduced credit requirements versus other offerings, which may be an option for those unable to secure approval for other unsecured credit cards due to their credit history.

Additionally, the card provides access to financial tools designed to help build or rebuild their credit history when used responsibly. By making timely payments and keeping credit utilization low, cardholders can demonstrate responsible credit management, potentially improving their credit score over time.

Fees

The Milestone Card is like many subprime and near-prime credit cards, which may charge high fees. For example, the high annual fees can significantly impact the cardholder’s available credit limit, potentially reducing their purchasing power, as the full charge is due after you open your account and will reduce your starting credit limit until paid.

Additionally, the Milestone Mastercard imposes various additional fees, including over-the-limit, late, and returned payment fees, which can further add to the card’s cost.