The Milestone credit card is an unsecured MasterCard that’s designed specifically for people who are getting their bad credit back on track.
You won’t find a rewards program, but you will find a card that doesn’t require a lot of cash upfront or pack on too many extra fees.
Keep reading to learn more about this “bad credit-friendly” card.
Milestone Card Account Basics
This card doesn’t string you along if you’re not likely to get approved.
To help make sure your credit score doesn’t drop more than it needs to, you can (and actually must) get prequalified.
Luckily, it only entails a soft credit check, so the inquiry won’t show up on your credit report unless you’re pre-qualified to submit an application.
Not only are cardholders with bad credit accepted for this card, you can even have a previous bankruptcy and potentially get approved.
No matter what’s listed on your credit report, it may be worth applying for the card if you’re in need of an additional line of credit.
Of course, you won’t automatically be granted a huge line of credit.
Most people start with a credit limit of just $300.
Still, it’s a beginning, especially when you’re just starting to rebuild your credit score.
With a 23.99% APR, you can expect to pay a fair amount of interest if you maintain a balance on this card.
Of course, that’s not incredibly high rate considering there’s more room with the credit requirements to qualify.
In fact, some competing cards have APRs as high as 36%.
Another differentiator for this card is that there are no monthly fees.
You will, however, have to pay an annual fee that varies depending on your credit score.
For the first year, it can be as low as $35 and go up to $75.
The fee then typically jumps to $99 annually after the first year.
The card is unsecured, meaning you don’t have to tie up a few hundred dollars as a security deposit just to access a line of credit.
That’s great news for people who don’t have a ton of money in savings because that can be a lot of cash to tie up if you’re already low on funds.
But the card’s annual fee is high relative to the available line of credit.
If you pay the maximum first-year fee of $75, that’s a full 25% of your $300 credit line.
Is the Milestone credit card best for you?
It may be if you want to build or rebuild your credit history without having to pay a hefty security deposit for a secured card.
Just be wary of how much you’re paying in interest and fees to determine if it’s a better value vs other cards available.
If you’re intrigued, remember that the initial pre-qualification gives you an idea of whether or not you’ll be approved without actually affecting your credit score.
It’s a low risk way to start the credit application process.