Introduction

One of the many irritating aspects of the card is that the annual fee might change yearly. There are several iterations of this card, and unless you go through a pre-qualification process, you won't find out which one you're authorised for until you've submitted your application. Your credit utilisation ratio will immediately increase, making it more challenging to obtain good credit, and the continued annual cost can range anywhere from $35 to $99, depending on the amount. The Milestone® Mastercard® has three different yearly fees, the greatest of which (for individuals with the poorest credit) can be as much as over 25 percent of the maximum credit line, which is $300.

Mastercard Account Protection

One standard perk with a Mastercard is zero liability fraud protection, which covers any unlawful purchases made on cards that have been lost or stolen. They also offer identity monitoring services to cardholders, which secure sensitive information such as your Social Security number, email addresses, account login information, credit and debit cards, and bank accounts.

No Security Deposit Is Required.

People who are attempting to build a stable credit history can qualify for a variety of credit cards. Still, most of them have secured cards, which need a cash deposit to start. In most cases, the amount you put down as a security deposit is equivalent to the credit limit associated with the card. Since the Milestone® Mastercard® is an unsecured credit card, there is no requirement for you to make a security deposit.

Painless Pre-Qualification

The pre-qualification procedure for the Milestone Mastercard is speedy and only involves a soft inquiry into your credit history (a "soft credit pull"). Pre-qualification does not ensure that you will be approved, but it provides a solid indication of the likelihood of being approved. Because of this prescreening process, it will be much simpler for you to look for a credit card without negatively affecting your credit score with a challenging credit draw.

Who This Card Is Good For

If you have a credit history that is less than ideal and you want to work on boosting your credit profile, the Milestone® Mastercard® may be an excellent option for you to consider. However, there are other credit-building cards available, and if you look at them, you might be able to find one with lower fees or a greater credit limit.

The Low Starting Credit Limit

In addition to having relatively high annual percentage rates (APRs), one of the most significant drawbacks associated with unsecured credit-building cards is that they typically have lower credit limits. There are no exceptions, and the Milestone Mastercard is not one among them. The card comes with a default beginning credit limit of $300, and the amount of your yearly fee is withdrawn straight from the amount of credit you have available. If you are allocated the high-end annual fee of $75 in your first year, you will begin with a $75 balance and around $225 in available credit. This is the case even if you are not awarded the high-end annual fee.

Although this restriction is quite typical for credit-building cards that don't require a deposit, it nevertheless has the potential to be an obstacle for many cardholders. This is because having a low credit limit makes it challenging to maintain a low credit utilisation ratio. This ratio measures the amount of money you borrowed compared to the total amount of credit you have available. Many financial experts advocate maintaining a credit utilisation ratio lower than 30% if you want to increase your credit score. This is because the credit use ratio accounts for thirty percent of your credit score. If you use your card for purchases that are made daily, it won't take much for you to acquire a high credit use ratio because your card only has a $300 credit limit.

Rates And Fees

The ongoing annual percentage rate (APR) for the Milestone Mastercard is 24.90 percent, and the annual percentage rate (APR) for cash advances is 29.90 percent for all three card products. Due to this card's high-interest rates, it is vital to maintain healthy financial habits, such as paying off your monthly debt and avoiding cash advances.

Pros Explained

• There is no requirement for a security deposit: You don't need to worry about making a cash deposit to get approved for the card. It's possible that the Milestone credit card could be appealing to you if you're someone who lives paycheck to paycheck, doesn't have any funds they can part with, and needs to develop credit.
• It's possible to obtain acceptance even with poor, limited, or no credit at all, as well as bankruptcies: When you're just starting with credit or trying to repair your credit after making mistakes in the past, it can be challenging to get a credit card. If you apply for a Milestone credit card, you could be approved even if you have a poor credit history, no credit history, or even if you have filed for bankruptcy in the past.
• The interest rate on the card does not change regardless of what the prime rate is doing because the APR is fixed. (The prime interest rate serves as the foundation for variable interest rates, which can shift at any time) That doesn't always guarantee the interest rate won't ever change, but the credit card company that issued you the card is obligated to let you know if that happens.

Conclusion:

Not everything that shines is valuable. People looking into line-of-credit options comparable to the boom in predatory lending that occurred prior to the current economic recession may shout "Eureka!" upon learning about the Milestone® Mastercard®. However, with an annual fee ranging from $35 to $99 (depending on creditworthiness), no incentives, low introductory APR, substantial additional advantages, and exorbitant interest rates, this credit card offers nothing but a poor choice to those who have very few other options. If you have any other choice, you should not walk away from this card; instead, you should run away. The fees, including the annual fee you'll get, are hidden in the tiny language of the agreement. In the small print, you'll find a 24.90% annual percentage rate (APR) that applies to all purchases.