Milestone Mastercard^® Review: $700 Credit Limit and Fees

The Milestone Mastercard^® is an unsecured credit card for consumers with less-than-perfect credit that does not require a security deposit. The current Milestone offer featured on our site provides a guaranteed $700 credit limit if approved, but the amount initially available to spend is approximately $525 because the $175 first-year annual fee is deducted from the credit limit. There is no monthly maintenance fee during the first year, but after the first year the card has a $12.50 monthly maintenance fee, or $150 annually, in addition to a $49 annual fee. Milestone also provides a prequalification process in which there is no impact to your credit score if you are not approved. The card is issued by The Bank of Missouri and can be used wherever Mastercard^® is accepted.

The Milestone Mastercard is designed for consumers who are working to establish or rebuild their credit history. It reports account activity to the major credit bureaus and provides an unsecured revolving line of credit without requiring a cash deposit. Because the fees reduce the amount of credit initially available and continue after the first year, it is important to understand the current terms before accepting the account.

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What Is the Milestone Mastercard^®?

The Milestone Mastercard is an unsecured credit card for consumers with less-than-perfect credit. It is issued by The Bank of Missouri and does not require a security deposit.

Unlike a secured credit card, you do not have to provide several hundred dollars of your own money as collateral to establish the Milestone account. If you are approved, the account provides a revolving line of credit that can be used for purchases wherever Mastercard is accepted.

Milestone describes the card as an option for consumers who are working on building their access to credit. Responsible use of the account can provide an opportunity to establish a payment history while managing a revolving credit account.

What Credit Limit Does the Milestone Mastercard Have?

The current Milestone Mastercard offer featured on our site provides a guaranteed $700 credit limit if approved.

However, the $700 credit limit does not mean that you will have $700 available to spend when the account is opened. The $175 first-year annual fee is deducted from the credit limit, leaving approximately $525 in initial available credit before any purchases or other charges are made.

This distinction is important because the $700 is the credit limit, while approximately $525 is the amount initially available after the first-year annual fee is assessed. Other applicable charges can further reduce your available credit.

Milestone's terms specifically state that some setup and maintenance fees are assessed before you begin using the card and reduce the amount of credit initially available. The terms also state that, under certain conditions, you may reject the plan if you have not yet used the account or paid a fee after receiving a billing statement.

What Are the Fees for the Milestone Mastercard?

The current Milestone Mastercard offer has a $175 annual fee during the first year and a $49 annual fee thereafter. The $175 first-year fee is particularly important because it is deducted from the $700 credit limit, leaving approximately $525 in initial available credit.

There is no monthly maintenance fee during the first year. After the first year, the monthly maintenance fee is $12.50 per month, which equals $150 per year. This monthly fee is separate from the $49 annual fee that applies after the first year.

The Milestone Mastercard also has a cash advance fee of $5 or 5% of the amount of each transaction, whichever is greater, up to $100. The foreign transaction fee is 1% of each transaction in U.S. dollars.

The listed penalty fees include a late payment fee of up to $41, an overlimit fee of up to $41, and a returned payment fee of up to $41.

The Milestone terms state that some setup and maintenance fees may be assessed before you begin using the card and will reduce your initial available credit. The terms also explain that you may reject the plan under specified conditions if you have not yet used the account or paid a fee after receiving a billing statement.

Can You Pre-Qualify for the Milestone Mastercard^®?

Yes. The Milestone Mastercard provides a prequalification process that allows you to check whether an offer may be available before completing the application process.

Milestone states that there is no impact to your credit score if you are not approved. This allows you to determine whether you may qualify without automatically receiving a hard inquiry simply because you checked for an offer.

Prequalification is not the same as final approval. If you receive an offer and decide to proceed, the application is then subject to the applicable approval process and terms.

➤ See If You Pre-Qualify for the Milestone Mastercard^®

Does the Milestone Mastercard Help Build Credit?

It can. The Milestone Mastercard is designed for consumers who are working to build or rebuild their credit, and responsible management of the account can establish a payment history.

Making payments on time and keeping your credit balance manageable are important when using a revolving credit account to establish a positive credit history. The card itself does not automatically improve your credit score; the potential credit-building benefit comes from how the account is used and how the account information is reported.

Because the Milestone Mastercard provides an unsecured revolving credit account without requiring a security deposit, it can be used as an alternative to a secured card for someone who qualifies for the account.

Can the Milestone Mastercard Be Used Anywhere Mastercard Is Accepted?

Yes. The Milestone Mastercard can be used wherever Mastercard is accepted, including purchases made in stores and online.

The card also includes Zero Fraud Liability, providing protection for unauthorized transactions subject to the applicable Mastercard terms and conditions.

What Should You Know About the Milestone Mastercard Before Applying?

The most important details are the relationship between the $700 credit limit and the $175 first-year annual fee, along with the fees that apply after the first year. Although the approved credit limit is $700, approximately $525 is initially available after the first-year annual fee is deducted.

The card has no monthly maintenance fee during the first year. After the first year, the monthly maintenance fee is $12.50, or $150 annually, and the annual fee thereafter is $49. These fees make it important to review the complete terms of the offer before accepting the account.

The Milestone Mastercard does not require a security deposit and offers a prequalification process with no credit-score impact if you are not approved. It is intended for consumers who are working to establish or rebuild access to credit, while approval and account terms remain subject to the applicable offer.