Milestone Credit Card Monthly Fee: An Overview
For individuals with bad credit, getting approved for an unsecured credit card like the Milestone® Mastercard® can be a major step toward rebuilding their financial profile. However, it is crucial to understand all the costs associated with these cards, especially the fees, as they can significantly impact your available credit and the overall cost of the card. A key feature of the Milestone® Mastercard® is its monthly fee, which has a specific and important structure that cardholders need to be aware of.
The Milestone® card's monthly fee structure
The monthly fee for the Milestone® Mastercard® does not begin immediately. Instead, it is introduced after the first year of account ownership.
- First year: No monthly fee: Cardholders do not pay a monthly fee during their first year with the card. This gives them a full year to focus on making on-time payments and responsibly managing their credit utilization to begin building a positive payment history.
- After the first year: Monthly fee is added: Starting in the second year, a monthly fee is charged to the account. This fee is a fixed amount billed each month. ($12.50 per month after the first year, totaling $150 annually.)
- Annual and monthly fees combined: It is important to note that after the first year, the card has both an annual fee and a monthly fee, significantly increasing the yearly cost of the card. While the annual fee drops to a lower amount after the first year, the addition of the monthly fee means you are still paying a consistent fee to maintain the card.
How the monthly fee affects your account
- Reduces available credit: Like the annual fee, the monthly fee is deducted from your credit limit. You will notice a portion of your credit limit is consumed by this fee every month.
- Consistent cost: The monthly fee is charged regardless of whether you use the card. This is a consistent cost that you must factor into your budgeting for the card.
- Alternative cost: It is a departure from many other cards for bad credit that may only charge an annual fee or a lower annual fee, but do not have a monthly fee.
Comparing fees to other options
When considering the Milestone® Mastercard®, it is important to compare its fee structure to other unsecured and secured cards designed for credit building.
- Unsecured alternatives: Other unsecured cards may have different fee structures, such as a higher annual fee but no monthly fee.
- Secured card alternatives: Many secured cards, which require a security deposit, have lower or no annual fees. For a detailed comparison, consider the fees of cards in our comprehensive guide to unsecured cards for bad credit.
The bottom line on the monthly fee
The monthly fee on the Milestone® Mastercard® is a significant factor to consider. While not charged in the first year, it is a consistent cost after that which reduces your available credit every month. By understanding this structure and comparing it to other cards, you can make a more informed decision about whether the Milestone® Mastercard® is the right tool for your credit-building journey.
Related articles
- Milestone® Mastercard® Maximum Credit Limit?
- Milestone® Mastercard® Credit Score Needed?
- Milestone® Mastercard® Annual Fee?
Milestone® Mastercard®
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FICO® Credit Scores
A FICO® Score is a proprietary credit score created by the Fair Isaac Corporation (FICO). About 90% of top U.S. lenders use it to make lending decisions.
FICO® Score Ranges:
- Exceptional: 800–850
- Very Good: 740–799
- Good: 670–739
- Fair: 580–669
- Poor: 300–579
FICO categorizes scores as Poor, Fair, Good, Very Good, and Exceptional.
What is a Credit Score?
A credit score is a three-digit number (300–850) predicting your creditworthiness. Lenders use it to evaluate risk and determine rates and terms for credit.
Why it matters: A higher score can help you qualify for loans and lower interest rates. A lower score can lead to higher borrowing costs or application denials.
FICO® Credit Score Facts
- Three-Digit Number: Summarizes your credit risk.
- Range: 300–850; higher scores = lower risk.
- Data Source: Uses your credit reports from Experian, Equifax, and TransUnion.
- Industry Standard: Lenders rely on FICO for mortgages, auto loans, and credit cards.
Note: Credit scores reflect your creditworthiness but do not guarantee approval for any credit product.
Security Notice: All participating issuers use secure application systems protected by Transport Layer Security (TLS) encryption to help protect your information.
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