Keeping your credit score at a good status is an everyday challenge, but rebuilding requires a more considerable effort and determination on your end. To do it, you need the right credit card in your credit-building journey, and there are lots of choices you can spot in the market. One of those is the Milestone Gold Mastercard. So, is it right for you?
Intro Bonus: None
Regular APR: 24.90%
Credit Score: 300 to 670 (Bad to Fair)
Annual Fee: $35 to $99
- It is an unsecured card with a maximum credit limit of $300.
- The annual fee can range from $35 to $99, which will be deducted automatically from your credit.
- The card offers no rewards and free credit score access.
- It provides primary Mastercard benefits.
- The card has a regular APR of 24.90%.
Milestone Gold Mastercard Full Review:
Milestone Gold Mastercard is an unsecured credit card designed to help those in bad credit situations improve their state. Milestone offers a pre-qualification option to help you determine if you could make the cut without negatively affecting your credit score. It also requires no deposit, which might sound reasonable. However, it doesn’t come without trade-offs. While it is good that you don’t need to provide any payment as collateral to the card issuer, the card comes with an annual feel, depending on your credit score: $35, $59, and $75. You won’t be able to know the yearly rate that would be approved to you, so you could end up paying a $75 annual fee in the first year (that would increase to $99 afterward).
Also, unlike others, this Milestone Gold Mastercard doesn’t come with any welcome bonus, which is acceptable given its fundamental purpose as a credit-builder unsecured card. Nonetheless, the card provides a credit that cardholders can use for their needs. It has a maximum limit of $300, which can be undoubtedly very minimal. This is where the ultimate flaw of the card would arise.
The request for a credit increase is not allowed for the card, which can mean you could end up with minimal credit if you want to use the card for emergency needs. Yet, the situation can even be more serious: your annual fee could eat up on your available credit. That means if you are approved for an account with a $59 yearly fee, you will only receive at least $241 due to an automatic deduction of the fee upon approval. If you think that is a bit dismaying, imagine getting approved for an account with a $75 annual fee that would later be increased to $99 a year.
The total amount you can use in the available credit after the deduction of the annual fee can even go lower than you expect. If you want to ensure that the card will contribute to your credit score’s improvement, you would need to observe the card’s credit utilization ratio that can affect your credit score. According to experts, it is safe and significantly suggested to keep it under 30%. That means if you have a $300 credit limit, you can only reach a monthly balance of $90. But then again, your $300 credit can even go lower after the automatic deduction of some fees.
Keeping an eye on the credit utilization ratio isn’t the only thing you should mind when you get this Milestone Gold Mastercard. You also need to make sure you are on top of your financial responsibilities when using the card. It has a high regular APR of 24.90%, while the cash advance APR is at a whopping 29.9% rate. It also has a 1% foreign translation fee and late payment fee/over-limit fee that can go up to $40.
On a positive note, the card offers primary Mastercard benefits such as ID theft monitoring and zero liability for fraud. However, it lacks features anyone would undoubtedly want to have in such a credit-building credit card. That includes free credit score access, which can help those desperate to keep an eye on their credit score improvement.
In the end, if you really are considering Milestone Gold Mastercard, know that its flaws outweigh its purpose as a credit-building tool. It takes more than diligence to make it work in improving your credit score. It won’t compensate you with any reward, just a pure promise of rebuilding your credit if and only if you use it properly. Yet, with a very minimal credit limit and annual fee clashing against each other, it is almost impossible to call it the perfect solution for those in a bad credit state. Thankfully, this is not the last resort for people struggling to rebuild their credit scores. Experts suggest opting for secured cards, which are a better choice (a truly better choice). They can also be as limiting as their unsecured counterparts, but they give you more power in succeeding in your credit-improvement journey. One example is Discover it Secured that, despite requiring a deposit of at least $200, charges $0 annual fees. With the proper use of the card, the amount can be refunded, and your account will be reviewed after a few months to determine if you are already eligible for an unsecured line of credit. It even offers rewards such as the Cashback Match, which means earning while you’re trying to improve your credit score.