Understanding the Milestone Credit Card: A Comprehensive Review

When it comes to building credit, it’s essential to choose the right financial products to support your journey. The Milestone credit card, offered by the Bank of Missouri, presents an option specifically designed for individuals looking to establish or rebuild their credit.

However, the Milestone credit card has raised eyebrows due to its associated costs and overall value. In this article, we will critically evaluate the Milestone credit card to help you determine if it’s the right choice for you.

Overview of the Milestone Credit Card

The Milestone Mastercard is specifically targeted at those who may not have an extensive credit history or those rebuilding their credit profile. One of the appealing aspects of this card is that it does not require a security deposit, which is commonly required by many secured credit cards. Additionally, it comes with an initial minimum credit limit of $700, which is competitive in the realm of credit-building cards.

High Costs with Limited Benefits

Despite the attractive features, the Milestone credit card is not without its drawbacks. The card incurs a staggering $175 annual fee for the first year, significantly overshadowing its benefits. After the first year, the fee drops to $49, but that still means cardholders are paying a total of $199 per year to maintain the account when you include the monthly maintenance fee of $12.50 that kicks in during the second year.

This heavy cost structure raises an important question: What benefits justify the steep fees associated with the Milestone credit card?

Benefits of the Milestone Credit Card

While the Milestone credit card does not come with a plethora of perks, it does offer a few notable features:

1. No Security Deposit Required: This is a major advantage for those who may not have the means to put down a deposit. This allows customers to apply for credit without needing any initial funds tied up.
2. Minimum Credit Limit: Starting with a $700 credit limit allows cardholders some flexibility in managing their expenses and utilizing their credit effectively.
3. No Minimum Credit Score Requirement: One of the unique attributes of the Milestone credit card is that it has no minimum credit score requirement for approval. This opens the card up to individuals who might be denied by other credit cards due to sketchy credit histories.
4. Account Reporting: The Milestone credit card reports to all three major credit bureaus, which means responsible usage can contribute positively to building or rebuilding your credit score.
5. Fraud Protection: The card includes fraud protection features, helping to ensure that cardholders are not held liable for unauthorized transactions.

While these benefits may seem enticing on paper, they seem relatively lackluster when compared to the high annual fees.

What is Missing?

Unfortunately, there’s a significant caveat when it comes to the Milestone credit card: it doesn’t earn any rewards. Unlike many other credit cards designed for similar demographics, the Milestone Mastercard lacks program benefits such as earning points, cash back, or miles. This means that while you’re spending on the card, you’re not reaping any of the rewards that could enhance your spending power.

Additionally, the absence of a decent welcome offer or any significant cardholder incentives makes the Milestone credit card less appealing than many competing options.

Competing Options to Consider

Given the lackluster offerings of the Milestone credit card, it’s essential to consider other options that provide better value for those looking to build or rebuild credit. Here are a few alternatives:

1. Capital One Quicksilver Secured Cash Rewards Credit Card

The Capital One Quicksilver Secured card mandates a minimum $200 security deposit, but it offers significant advantages. Cardholders earn 1.5% cash back on every purchase, and there’s no annual fee, making it an excellent choice for earning rewards while building credit.

2. Chase Freedom Rise

Chase has developed a card specifically for individuals with no or poor credit. The Chase Freedom Rise card allows you to earn 1.5% cash back on all purchases with no annual fee. Furthermore, establishing a banking relationship with Chase can enhance your chances of being approved for other Chase cards in the future.

3. Capital One SavorOne Student Cash Rewards Credit Card

For college students, the Capital One SavorOne Student Cash Rewards card is an outstanding choice. It shines with 3% cash back on dining, entertainment, and grocery store purchases, alongside a zero annual fee. This card helps students not only build their credit history but also earn rewards on their everyday spending.

Is the Milestone Credit Card Worth It?

With its high fees and limited benefits, the Milestone credit card raises questions about its actual value for those looking to build credit. The lack of rewards, significant annual fees, and the additional monthly maintenance fees make it a less attractive option compared to other cards available on the market. While it offers some advantages, such as not requiring a security deposit and having a decent starting credit limit, these benefits do not sufficiently compensate for its costs.

If you are focused on building your credit, it would likely be more beneficial to consider alternative options that offer lower fees, better rewards, or at least some form of earnings on your spending. Cards like the Capital One Quicksilver Secured and the Chase Freedom Rise provide opportunities to earn from your purchases while still allowing you to build credit — something that the Milestone credit card fails to deliver.

Great Moment with Milestone Credit Card

In summary, the Milestone credit card may appeal to individuals looking for a straightforward credit-building option with no credit score requirements. However, with its steep annual fee and absence of rewards, it positions itself as one of the more expensive choices for credit-building cards in the market today.

Evaluate the Milestone credit card’s features and costs for effective credit-building opportunities.

Consumers focused on building their credit should carefully evaluate their options and may find better value elsewhere. With numerous credit cards available that offer incentives for spending, it’s advisable to explore alternatives that can help you maximize your financial benefits while establishing a solid credit history.

Ultimately, while the Milestone credit card has some attributes that offer basic credit-building opportunities, its high costs and limited features lead to a conclusion that this may not be the best choice for most consumers. Take the time to assess your needs and do thorough research on available credit building options to choose the best card that meets your financial goals and rewards your spending effectively.