If you’re in the market for a credit card and have a less-than-stellar credit history, you may have come across the Milestone credit card. This card is specifically designed for individuals with bad credit, offering them a chance to rebuild their credit. However, before you rush to apply for it, it’s essential to understand what this card entails, including its fees, interest rates, and credit limits.
What Is the Milestone Credit Card?
The Milestone Credit Card is a credit product designed primarily for individuals with a less-than-perfect credit history. This card offers such individuals an opportunity to rebuild or improve their credit by providing a platform to demonstrate responsible credit usage over time.
Features and Characteristics:
1. Type:
The Milestone Credit Card is an unsecured card, which means applicants don’t need to provide a security deposit to open an account, unlike secured credit cards.
2. Affiliation:
It is a MasterCard, which ensures its acceptance at a vast number of merchants globally.
3. Annual Fee:
The card may come with an annual fee, which can vary depending on the cardholder’s creditworthiness. This fee can range from $35 to $99.
4. Credit Limit:
Typically, new cardholders are offered a credit limit around $300. However, the initial available credit might be reduced by the annual fee, if applicable.
5. Credit Reporting:
The Milestone Credit Card reports to all three major credit bureaus, which can aid in building a credit profile if the card is used responsibly.
6. Interest Rate (APR):
The card’s Annual Percentage Rate can be relatively high, which is not uncommon for credit cards targeting those with poor credit. As such, it’s beneficial for cardholders to pay off their balances in full each month to avoid accruing interest.
Pros And Cons of Milestone Credit Card
The Milestone Credit Card serves as a tool for individuals with bad credit to have access to credit, with the goal of improving their credit score over time through responsible card usage. However, potential applicants should consider the associated fees and interest rates before applying.
Pros:
- Unsecured credit card
- Opportunity for credit building
- No security deposit required
- MasterCard benefits
- Accepted globally (where MasterCard is accepted)
- Reports to major credit bureaus
- Online account management
Cons:
- High annual fee
- Elevated APR
- No rewards program
- The low initial credit limit
Qualifying for the Milestone Credit Card
If you’re considering the Milestone credit card, you might wonder about your chances of approval. Most applicants with bad credit histories are likely to receive approval for this card. Genesis Card Services typically performs a soft pull on your credit when you pre-qualify, which won’t negatively impact your credit score.
However, if you proceed with a full application, you’ll undergo a hard credit inquiry, which could have a slight negative effect on your credit score. Nevertheless, for individuals seeking to rebuild their credit, the potential benefits of approval may outweigh this drawback.
How to Apply for the Milestone Credit Card?
Applying for the Milestone Credit Card is a relatively straightforward process, especially if you’re familiar with online credit card applications. Here’s a step-by-step guide to help you navigate the application:
Step 1: Visit the Official Website
Navigate to the official Milestone Credit Card website. This ensures you’re accessing a secure and legitimate application portal.
Step 2: Click on ‘Apply Now’
If you’re ready to apply, locate and click on the ‘Apply Now’ button or similar call to action.
Step 3: Enter Personal Information
The application form will request personal details such as:
- Full name
- Address (including city, state, and ZIP code)
- Date of birth
- Social Security number
- Email address
- Primary phone number
Step 4: Financial Information
You’ll also be asked about your financial status, including:
- Monthly income
- Type of bank account (checking, savings, or both)
- Employment status
Step 5: Read the Terms and Conditions, Agree & Submit
It’s crucial to thoroughly read the terms and conditions, including the interest rate (APR), fees, and other pertinent details related to the Milestone Credit Card. If you’re satisfied with the terms, check any box indicating that you agree to the terms and conditions, and then click on the ‘Submit’ button or similar prompt to send in your application.
Step 6: Wait for a Response
After submitting, you’ll typically receive an immediate decision, though in some cases, it may take a bit longer. If approved, you will be informed of your credit limit and any applicable fees.
Step 7: Receive the Card
Once approved, you should receive your Milestone Credit Card in the mail within a couple of weeks. Ensure you activate the card using the provided instructions before you start using it.
Other Important Considerations
Here are some factors that one needs to consider before applying fir the card. This way, you can make a more informed decision. Let’s check it.
1.High Fees and Annual Costs
One of the first things to note about the Milestone credit card is the fees associated with it. In most cases, cardholders will face an annual fee, which can vary depending on your creditworthiness. This fee can range from $35 to $99. In your first year, you may even encounter a $75 fee.
It’s important to understand that this annual fee can impact your initial credit limit. If you’re approved for the card with a $300 limit and you have to pay a $75 annual fee upfront, you’ll effectively have only $225 of available credit from the start.
2. Low Credit Limits
Speaking of credit limits, the Milestone credit card typically starts with a low credit limit, often around $300. This limited spending power can be challenging for those looking to make significant purchases or cover unexpected expenses. The combination of high fees and low credit limits can make it difficult to manage your finances effectively.
3. No Rewards Program
Another notable aspect of the Milestone credit card is that it doesn’t offer any rewards program. You won’t earn cashback, points, or miles for your spending, which is a common feature in many other credit cards. This makes the Milestone card a bare-bones financial tool designed primarily for credit building rather than earning rewards.
4. Interest Rates: What to Expect
The interest rate associated with the Milestone credit card is a crucial factor to consider, especially for those with bad credit. As of the last available information, the card carries a 24.9% Annual Percentage Rate (APR). While this rate may seem high, it’s important to remember that credit cards designed for individuals with bad credit typically come with elevated interest rates.
However, keep in mind that interest charges can be avoided entirely if you pay your balance in full by the due date each billing cycle. This financial discipline can help you steer clear of the high-interest trap.
5. About the Issuer: Bank of Missouri and Genesis Card Services
The Milestone credit card is marketed by Genesis Card Services, a company with a track record in serving the needs of individuals looking to rebuild their credit. While this doesn’t necessarily guarantee a stellar experience, it’s worth noting that Genesis Card Services is a well-established player in the bad credit space.
Genesis Card Services also offers two other credit cards: the Indigo Mastercard and the Destiny Mastercard. These cards share many similarities with the Milestone card, including high annual fees, low credit limits, and high-interest rates. In essence, Genesis Card Services offers multiple options to cater to a diverse range of applicants within the bad credit market.
Alternatives to the Milestone Credit Card
While the Milestone credit card serves a specific niche, there are alternative options worth exploring if you’re concerned about the high fees and limited credit limit. Consider the following alternatives:
Secured Credit Cards
Secured credit cards require a security deposit upfront, but they often come with lower fees and higher credit limits than unsecured cards targeting individuals with bad credit. Some well-known banks offer secured cards, such as Discover, Capital One, Bank of America, and U.S. Bank. With responsible use, you may be able to graduate to an unsecured card with these banks.
Other Credit Card Options
If you’re completely new to credit and don’t have a history of credit problems, you might be better off exploring other credit card options. Many credit card companies offer cards designed for individuals with no credit history, which may have more favorable terms and lower fees compared to cards like Milestone.
The Role of Genesis Card Services
Genesis Card Services, the marketer of the Milestone credit card, has a track record of serving individuals with bad credit. While it’s not a well-known name in the financial industry, its experience in the bad credit space provides some reassurance regarding credibility. However, it’s still wise to research and read reviews about their services and customer experiences.
Alternative Credit-Building Paths
Finally, it’s worth reiterating that while the Milestone credit card can be a viable option for rebuilding credit, exploring alternative paths, such as secured credit cards, remains a prudent strategy. Secured cards from established banks can offer better terms, lower fees, and the potential for advancement to unsecured credit cards with responsible use.
Understanding the additional details related to the Milestone credit card, such as variable fees, interest rate variability, the role of Genesis Card Services, and alternative credit-building paths, is crucial when making an informed decision about your financial future.
Careful consideration and research can help you choose the most suitable credit-building option for your unique circumstances. And you can also take information about instant approval credit cards. It is helpfull and a complete guide.
Understanding the Terms and Conditions
Before applying for the Milestone credit card, it’s crucial to read and understand the terms and conditions. The advertised APR and fees might not be the same for everyone, as they can vary based on individual creditworthiness. Ensure you’re aware of the specific terms that will apply to your account.
Before you decide whether the Milestone credit card is the right choice for you, it’s essential to delve deeper into the additional information that can impact your decision. Here, we’ll provide you with crucial insights and considerations related to this credit card, building upon what we’ve discussed earlier in the article.
Variable Annual Fees
While we mentioned that the Milestone credit card comes with an annual fee, it’s important to note that this fee can vary based on your creditworthiness. The initial annual fee could be $35, $59, or $75, depending on your approval terms. After the first year, the annual fee may increase to $99. This variable fee structure underscores the need to carefully review your offer and understand the associated costs before committing.
Interest Rate Variability
Annual Percentage Rate (APR) is 24.9%, but it’s crucial to emphasize that the APR you receive may vary. The rate you’re offered could be different from the one presented in the article, depending on your specific circumstances. As APR plays a significant role in the cost of carrying a balance, it’s essential to be aware of your personalized interest rate.
Frequently Asked Questions
What is the Milestone credit card’s primary target audience?
The Milestone credit card is primarily designed for individuals with bad credit or a less-than-ideal credit history. It aims to provide them with an opportunity to access unsecured credit and rebuild their credit scores.
How much is the annual fee for the Milestone credit card, and is it the same for everyone?
The annual fee for the Milestone credit card can vary based on your creditworthiness. It typically ranges from $35 to $99, with some cardholders facing a $75 fee in the first year. It’s essential to review your specific offer to determine your annual fee.
Does the Milestone credit card offer any rewards or cashback benefits?
No, the Milestone credit card does not offer a rewards program. It is a straightforward credit card focused on credit building and does not provide cashback, points, or miles for your spending.
What is the interest rate (APR) for the Milestone credit card, and can it vary for applicants?
The Milestone credit card has an APR of 24.9% as mentioned in the article. However, it’s important to note that the APR offered to applicants may vary based on individual credit profiles and approval terms.
Are there alternatives to the Milestone credit card for individuals with bad credit?
Yes, there are alternative options for individuals with bad credit, including secured credit cards. Major banks offer secured cards that require a security deposit but often come with lower fees and better terms. These secured cards can also provide a path to graduating to an unsecured card with responsible credit use.
Conclusion
The Milestone credit card offers a ray of hope for those with compromised credit, providing an unsecured credit option. However, its high fees, restrictive credit limits, and lack of rewards can diminish its appeal. While it can serve as a tool for credit rebuilding, alternatives like secured cards, with often lower fees and better upgrade paths, present a more strategic choice. Making informed decisions is crucial for your financial trajectory, and it’s wise to explore all avenues before settling on any single credit solution.