First, let’s see why the Milestone gold mastercard? The Milestone card enables you to enjoy the benefits of a Mastercard without the need for a security deposit. Whether you have less than perfect credit or even a prior bankruptcy, the Milestone Mastercard is for you.
- People are considered even with bad, limited or no credit
- No security deposit required
- Applying for prequalification won’t affect your credit scores
- High purchase and penalty APRs
- Low credit limit
- Annual fee
- Possible account opening fees as well as fees for late payments, going over your credit limit and returned payments
What you need to know about the Milestone Gold Mastercard
The Milestone Gold Mastercard is an unsecured credit card that is planned to accommodate customers or intending ones with little or no records of credit.
This card also is designed to help build your credit. This can be achieved when you are mindful of your charges and by making sure you pay your bills timely and in full too. Remember to take into account the following few things before applying.
Reports to Credit Bureaus
Credit bureaus are the issuer of the card, this means that the Bank of Missouri will have to report your payments to the three major credit bureaus: Equifax, Experian and TransUnion. When you keep your records straight by making your monthly payments on time, you can help build your credit profile.
No Security Deposit required
Records hold it that, many of the credit cards designed for people working on establishing a solid credit history are secured cards that require a cash deposit. In essence, the amount you put down serves as your security deposit and must be equal to the credit limit on your have with the card.
Due to unsecured nature of the Milestone Gold Mastercard, you don’t need to put down a deposit.
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Your application for prequalification for Milestone Gold Mastercard will not in any way affect your credit scores. However, getting prequalified does not guarantee you approval, but rather it can help you decide whether completing a formal application for the card is worth it. When you submit a full application for the card, be assured of receiving a hard inquiry on your credit reports. This hard inquiry could temporarily lower your scores.
In your first year, the Milestone Gold Mastercard comes with an annual fee of $75; thereafter you can unlock $99 (you might see different offers on Credit Karma).
With this, the annual fee will be deducted from your credit line when your account is open. For instance, if you have a credit limit of $300, with the $75 first-year fee, you then have $225 in credit available to you.
While many credit-building cards come with annual fees, it is worthy to note that, there are some cards over there that doesn’t come with that. While some of those cards don’t have annual fees due to their secured nature/pattern which is why they do require a security deposit.
The good thing of a security deposit with an annual fee is that you can get your security deposit back at some point, in most cases.
High Interest Rate and Penalty APR
This card do not give room for balance transfer, this explain why its APR is 24.99% for purchases made. Therefore, if there is a carryover balance, the interest charged becomes very high.
To worsen the situation, when you default by making a single late payment, you could be charged a penalty APR of 29.90% that may remain on your account for as long as it’s open, even if you get your payments back on track.
You could also be charged a fee of up to $40 for late payments, returned payments or exceeding your credit limit.
Minimum Credit Limit
The Milestone Gold Mastercard is designed to accommodate even low credit limit of $300. Even the annual fee to be charged at account opening will be taking into cognizance of your credit line before you even make a purchase.
Going by such a low credit limit, it becomes very difficult to keep your credit utilization- hence the amount of credit used compared with what is available to you been low. Note that, credit utilization ratio is one of the determinant factors used to calculate your credit scores, so that could limit your chances of improving your credit.
To help keep your utilization low, consider making payments more than once a month and aim to pay off your balances in full.
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Who this card is good for
The Milestone Gold Mastercard may be a good option if you have a less-than-perfect credit history and want to work on building your credit profile.
But one thing common is that, there are other credit-building cards that are readily available, do yourself good to find one with fewer fees or a higher credit limit if you shop around.