Milestone Gold Mastercard: A Worthy Credit Builder?

For people with less-than-perfect credit but not enough money on hand to buy a secured card, the Milestone® Gold Mastercard® from the Bank of Missouri may be a suitable option for them. Getting a Gold Mastercard has its perks, but it doesn’t let you transfer balances and has such a high APR that carrying a balance is quite costly. That’s another reason to pay off your balance and improve your credit score.

This card’s credit limit is only $300, which may help curb spending but may also limit its use as an emergency funding source in the event of an emergency. Also, the card incurs an annual fee upon its issuance, which reduces its available credit.

Please note that these cards charge between $35 and $99. You can only be pre-qualified for the card once the pre-qualification process has been completed.

With a high-interest rate and accrued penalties for late payments, a late payment on a card like this may not be a good option. Penalties for late payments may go up to $40.

After the first year, the cash advance transaction fee is either 5-percent or $5 per transaction, whichever is greater. You still have to pay interest from the date of cash advances.

Is This The Right Card for You?

Unsecured credit cards with high fees, high interest rates, and low credit limits are common among people with poor credit. Their unforgiving fee structure makes them undesirable options; a secured card is a better option if you can pay for a security deposit.

There are fewer fees associated with the Milestone® Gold Mastercard®, but it has a lower credit limit. The easiest way to compare the best cards would be to complete the pre-qualification process for each card that offers it so you can know what the fees are and what the credit limits are. Not all pre-qualifications indicate acceptance.

Rehabilitating your credit is easy using this card, since you track your expenses, pay off the card monthly in full, and develop good habits. It is advisable to use Milestone Gold Mastercard for a year before switching to a card that has lower fees and better features once your credit score has improved. This is not a card that you ought to keep for years.

Keep your credit use within 30%, the lower the better. A common guideline for credit use is to keep your balance to no more than $90 on the Milestone® Gold Mastercard®.

Making payments on time and keeping tabs on your spending is possible with online 24/7 account access. You can improve your credit score by managing the Milestone card since it reports to all three credit bureaus.

Pros 

There is no need for a security deposit

With no money needed to in order to get approval for the card, the Milestone credit card can be extremely appealing if you are you are struggling financially, have no savings, and most importantly, have to build credit. 

Bad, limited, and poor credit could potentially get approved

You can apply for the Milestone credit card without it affecting your credit score without having new credit, or rebuilding your credit after credit mistakes of the past.

The annual percentage rate is fixed 

In general, the interest rate on this card stays the same no matter the prime rate for variable interest rates. (Prime rate determines what variable interest rates are.) Of course, you’ll need to find out if it changes.

Cons 

A Potentially high annual fee is possible

There are different fee structures for this card. Credit history will determine if you are able to get a recurring annual fee of between $35 and $59, or you may have a $75 annual fee for the first year, then an annual fee of $99 after that.

There isn’t a rewards program

A credit card that earns rewards is likely a better option for people who want to improve their credit than a card that earns cash back. However, other cards offer the capability to earn both. 

The credit limit is too low

The Milestone Gold Mastercard has a credit limit of $300 , and there are associated set-up fees and annual fees. You might have a credit limit of $225 when first opening your card. That’s not much, especially if you’re working to build your credit. But if you pay any amount for security deposit, you may receive a higher credit limit.

Steps to Apply for the Milestone Mastercard

If you want to get a Milestone Mastercard it is easy to apply for. 

  1. Visit the Milestone Gold Mastercard website 

Begin by going to the website. Click the pre-qualification button. 

  1. Fill in the information

This will take you to a “pre-qualification application page” on which you can fill in your information in the required fields. At the bottom of the page, you can click on “prequalify now” to move forward with the application. 

  1. Get an instant decision

A decision should be made instantly, according to the Milestone Gold website.

It’s important to remember that just because you pre-qualify it doesn’t mean you’ve been approved. Once you are pre-qualified, you’ll need to submit a full application, which will result in an inquiry on your credit report. 

What alternatives are there to the Milestone Mastercard?

You can still qualify for a credit card even if you have a poor credit score. Fortunately, there are several credit cards out there to help you rebuild your credit. 

  1. The Discover it® Secured Credit Card

You receive a 22.99% price for the Discover it® Secured credit card, whereas the Milestone Gold Mastercard will charge you a 24.90% APR.

You can also earn up to $1,000 in cashback on gasoline and restaurant purchases with a Discover it Secured card. Additionally, you’ll earn unlimited 1% cashback on all other purchases. 

You must deposit $200 to get Discover it Secured. You receive this deposit back when the account is closed.

  1. The Capital One® Secured Mastercard

With the Capital One® Secured Mastercard, you have to make a security deposit to open your account. However, you can choose to deposit $49, $99, or $200 for a $200 credit limit. 

Once you make your payments on time for five consecutive months, you can request a higher credit limit, which can improve your credit use. There are no monthly service fees or annual fees. 

An added benefit is that you can choose your own payment date. One drawback is that the Capital One Secured Mastercard has an APR of 26.99% which is higher compared to the instrest rate of Milestone Gold card.

  1. The OpenSky® Secured Visa Credit Card 

With an APR of 18.99%, the OpenSky® Secured Visa card is an excellent opportunity for people with poor credit. Although there is an annual fee of $35, you won’t pay any monthly fees or setup fees. 

As it’s a secured card, put down a minimum of $200 to start. However, you can increase the security deposit to a maximum of $3,000 if you want a higher credit limit. 

You can also report your payments to all three major credit bureaus with the OpenSky® card, so you can use it to build your credit record.

Conclusion

Milestone Gold will benefit those who want to improve their credit score — regardless of whether there is a prior blemish on your credit report or you’re starting fresh. Your payments will be reported to the three major credit bureaus, so you can build your credit profile by making your payments on time.

Consider taking out another credit building card instead, as you may find one with lower fees or a higher credit limit. You may receive a store card or a secured credit card if you can pay a deposit.

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