Milestone Credit Card: Benefits, Fees and How to Apply
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Milestone Credit Card offers credit rebuilding opportunities for individuals with poor or limited credit history, featuring no security deposit requirement, monthly reporting to major credit bureaus, and accessible approval criteria, though carrying higher fees and interest rates typical of subprime credit cards.
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Milestone Credit Card provides a pathway to credit rebuilding for individuals who have been denied traditional credit cards due to poor credit scores or limited credit history. Issued by The Bank of Missouri, this unsecured credit card targets the subprime credit market, offering approval opportunities when mainstream issuers decline applications. Understanding the card’s features, fee structure, and strategic usage helps you determine whether Milestone represents the right tool for your credit rebuilding journey and how to maximize its benefits while minimizing costs.
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How to Apply for Milestone Credit Card
Applying for the Milestone Credit Card follows a straightforward online process designed for quick decisions. The card targets individuals with credit scores ranging from 300 to 650, making it accessible to those rebuilding credit after bankruptcies, foreclosures, or other financial setbacks.
Application Requirements
- Must be at least 18 years old and United States resident with valid Social Security Number
- Verifiable income from employment, benefits, or other regular sources to support minimum payments
- Valid email address and phone number for account communications and verification
- No minimum credit score required though approval depends on overall credit profile evaluation
Step-by-Step Application Process
Step 1: Pre-Qualification Check – Visit the official Milestone website and use the pre-qualification tool that performs a soft credit inquiry not affecting your credit score. This shows potential approval odds and card offers available based on your credit profile before committing to a full application.
Step 2: Complete Application – If pre-qualified, proceed with the full application providing personal information including full legal name, date of birth, Social Security Number, current address with at least six months residency, annual income from all sources, and monthly housing payment amount.
Step 3: Receive Decision – Most applicants receive instant approval or denial decisions within seconds. Some applications require manual review taking one to two business days. Check email for decision notifications and next steps if approved.
Step 4: Pay Program Fee – Upon approval, you must pay a one-time program fee ranging from 35 to 99 dollars depending on your credit profile before card activation. This fee reduces your available credit immediately upon charging to the account.
Step 5: Activate Card – Receive your physical card by mail within seven to ten business days. Activate through the website or customer service number, set up online account access, and begin using the card responsibly to rebuild credit.
Credit Limits and Fee Structure
Milestone Credit Card initial credit limits typically range from 300 to 700 dollars based on creditworthiness assessment during application review. The low limits reflect the higher risk profile of approved applicants and help manage issuer exposure while providing cardholders opportunity to demonstrate responsible usage.
Understanding the complete fee structure proves essential for evaluating the card’s true cost. Milestone charges multiple fees common among subprime credit cards, making it more expensive than prime credit cards but providing credit access when other options are unavailable.
Primary Fees
- Annual fee of 35 to 99 dollars charged when account opens and annually thereafter on account anniversary
- Program fee of 35 to 99 dollars one-time charge at account opening reducing available credit
- Monthly servicing fee of zero to 12.50 dollars depending on account tier charged monthly
- Late payment fee up to 40 dollars when payment received after due date
- Returned payment fee of 40 dollars if payment method fails or check bounces
Interest Rates
The Annual Percentage Rate ranges from 24.90 to 35.90 percent based on creditworthiness, significantly higher than prime credit cards averaging 15 to 20 percent. This elevated rate reflects the increased risk of lending to subprime borrowers with higher default probabilities.
Avoiding interest charges entirely by paying the full statement balance each month represents the optimal strategy for Milestone cardholders. Using the card purely for credit building rather than financing purchases minimizes total costs while maximizing credit score improvement benefits.
Credit Building Benefits and Reporting
Milestone’s primary value proposition centers on credit rebuilding through consistent positive payment history reporting to all three major credit bureaus: Experian, Equifax, and TransUnion. This monthly reporting helps establish or rebuild credit scores when used responsibly over time.
Payment history represents 35 percent of your FICO credit score, making on-time payments the single most impactful factor in score improvement. Each month you pay at least the minimum payment by the due date, Milestone reports that positive activity, gradually improving your credit profile.
Maximizing Credit Building
- Make every payment on time without exception as even one late payment significantly damages scores
- Keep credit utilization below 30 percent of your limit ideally under 10 percent for optimal scoring
- Pay more than the minimum payment whenever possible to reduce balances faster
- Set up automatic payments to ensure you never miss due dates accidentally
Credit utilization, the second most important scoring factor at 30 percent weight, measures how much of your available credit you’re using. With Milestone’s low credit limits, keeping balances minimal proves crucial. A 300 dollar limit means keeping balances under 30 dollars for optimal utilization ratios.
Most cardholders see credit score improvements within three to six months of responsible usage, with more substantial gains appearing after twelve months of perfect payment history. The card serves as a stepping stone toward qualifying for better credit products with lower fees and more favorable terms.
Using Your Milestone Card Strategically
Strategic Milestone Card usage minimizes costs while maximizing credit building benefits. The card should function as a credit building tool rather than a primary spending vehicle due to its high fees and interest rates.
Consider charging a small recurring bill like a streaming service subscription or phone bill to the card each month, then immediately paying it off when the statement closes. This creates consistent positive payment history without carrying expensive balances or risking overspending.
Best Practices
- Never carry a balance if possible to avoid high interest charges that negate credit building benefits
- Use the card for one small purchase monthly maintaining account activity for reporting purposes
- Pay the full statement balance before the due date every month without fail
- Monitor your credit reports quarterly to verify accurate reporting and track score improvements
- Avoid cash advances which carry additional fees and higher interest rates than purchases
Setting up balance alerts helps you avoid exceeding your low credit limit which triggers over-limit fees and reports negatively to credit bureaus. The Milestone mobile app and online account access allow real-time balance monitoring and payment scheduling preventing costly mistakes.
After six to twelve months of responsible Milestone usage with improved credit scores, begin applying for better credit cards with no annual fees, rewards programs, and lower interest rates. The improved credit profile Milestone helps build opens doors to superior credit products making Milestone itself obsolete.
Comparing Milestone to Alternative Options
Milestone Credit Card competes in the subprime unsecured credit card market with alternatives including Credit One Bank cards, Indigo Platinum Mastercard, and Reflex Mastercard. Each targets similar demographics with comparable fees though specific terms vary.
Secured credit cards represent another alternative requiring security deposits typically matching your credit limit. Cards like Discover it Secured or Capital One Platinum Secured charge no annual fees and report to credit bureaus identically to unsecured cards while offering paths to graduation into unsecured products.
Key Comparisons
- Secured cards require deposits but typically have lower fees and better graduation programs
- Credit One Bank offers similar approval odds but includes rewards programs Milestone lacks
- OpenSky Secured requires no credit check making approval easier than Milestone
- Milestone requires no deposit making it accessible without upfront cash reserves
The choice between secured and unsecured subprime cards depends on available resources and priorities. Secured cards generally offer better long-term value with lower fees and rewards potential, but require deposits many applicants cannot afford. Milestone provides immediate unsecured credit access without deposits though at higher ongoing cost.
Account Management and Customer Service
Milestone provides multiple account management channels including online banking through their website, mobile app for iOS and Android devices, automated phone system for balance and payment information, and customer service representatives available during business hours for complex inquiries.
The online portal and mobile app allow viewing transactions, making payments, updating contact information, reporting lost or stolen cards, and accessing statements. Setting up online access immediately after approval prevents missed payments and enables proactive account monitoring.
Important Account Features
- Autopay enrollment ensures minimum payments process automatically preventing late fees
- Email and text alerts notify you of upcoming due dates, low balances, and large transactions
- Electronic statements reduce mail delays and provide immediate access to billing information
- Temporary card locks through the app prevent fraud if you misplace your card
Customer service experiences with Milestone receive mixed reviews with some cardholders reporting long wait times and difficulty resolving issues. Having account information ready when calling and clearly documenting interactions improves resolution likelihood for billing disputes or account questions.
| Feature | Details |
|---|---|
| Credit Limit | 300 to 700 dollars based on credit profile |
| Annual Fee | 35 to 99 dollars yearly plus monthly servicing fees |
| APR Range | 24.90 to 35.90 percent variable rate |
| Credit Reporting | Reports monthly to all three major bureaus |
Frequently Asked Questions
Milestone Credit Card has no minimum credit score requirement and targets individuals with poor to fair credit ranging from 300 to 650. The card approves applicants other issuers decline including those with bankruptcies, collections, or limited credit history. However, approval is not guaranteed and depends on overall credit profile evaluation including income and existing debt levels.
Most cardholders notice credit score improvements within three to six months of responsible usage including on-time payments and low utilization. Substantial score gains typically appear after twelve months of perfect payment history. Individual results vary based on starting credit score, other accounts on your report, and overall credit profile. Consistent positive behavior over time yields the best results.
Milestone periodically reviews accounts for credit limit increases after six months of responsible usage. Increases are not guaranteed and depend on payment history, account utilization, income changes, and overall credit profile improvements. You can request increases through customer service after six months, but frequent requests may result in hard credit inquiries affecting your score. Focus on responsible usage rather than chasing limit increases.
No, Milestone Credit Card does not offer cashback rewards, points programs, or travel benefits. The card’s sole purpose is credit building through monthly reporting to credit bureaus. The high fees and lack of rewards mean the card should function as a temporary credit building tool rather than long-term spending vehicle. After improving your credit score, graduate to cards offering rewards and better terms.
Secured cards typically offer better long-term value with lower fees, rewards programs, and graduation to unsecured status. However, they require security deposits matching your credit limit that many applicants cannot afford. Milestone provides immediate unsecured credit without deposits but charges higher fees. Choose secured cards if you have deposit funds available, or Milestone if you need credit access without upfront cash investment.
Conclusion
Milestone Credit Card serves a specific purpose in the credit rebuilding ecosystem, providing unsecured credit access to individuals who cannot qualify for mainstream cards or afford secured card deposits. The card’s monthly reporting to all three credit bureaus enables score improvements when used responsibly through consistent on-time payments and low utilization. However, the high fees including annual charges, program fees, and monthly servicing costs make Milestone expensive compared to secured alternatives and prime credit cards.
Success with Milestone requires viewing it as a temporary stepping stone rather than permanent solution. Use the card strategically by charging small recurring bills, paying balances in full monthly to avoid interest, and maintaining utilization below thirty percent. After six to twelve months of responsible usage and resulting credit score improvements, begin applying for better credit products with no annual fees and rewards programs. The improved credit profile Milestone helps build ultimately makes the card itself obsolete, fulfilling its purpose as a credit rebuilding tool that graduates you to superior financial products offering real long-term value.
