If you have fair to poor credit, the Milestone® Mastercard® (issued by The Bank of Missouri, serviced by Concora Financial) offers a way to build credit without a deposit. With approval possible even with bad credit and a guaranteed reports to all three bureaus, it’s an accessible tool to start rebuilding—though it comes with significant costs.
🎁 No Rewards—but Credit-Building on Offer
- No rewards program: no points, miles, or cash back—uncommon given the high fees.
- The core value is monthly reporting to Equifax, Experian, and TransUnion, enabling you to build a credit history through responsible use.
💸 Fees & Rates—What To Look Out For
Annual & Monthly Fees
- Annual fee may range from $75 to $175 in the first year, based on credit profile—and drops to $49–$99 afterward.
- From year two onward, an additional $12.50/month fee applies—adding roughly $150 annually. Combined with the annual fee, you may pay up to $199/year just to keep the card.
APR & Interest
- Purchase APR is a steep 35.9% variable—typical for subprime cards but very costly if you carry a balance.
- Cash advances carry high fees (5% or minimum $5) and begin accruing interest immediately at the same rate.
Credit Limit Impact
- You may qualify for an initial credit limit up to $700, but annual fees are deducted up front—so you’ll typically have less to use.
- Low available credit and high fees create dual challenges: limited spending power and utilization nearing 30% from just the fee alone.
⚙️ Why Some Choose Milestone—And Why Experts Warn Against It
Pros
- Unsecured approval: no deposit required—rare for bad-credit cards.
- Guaranteed reporting to all major bureaus monthly—crucial for credit rebuilding.
- Prequalification available with a soft pull—no score impact if not approved.
Cons
- Harsh fee structure: up to ~$200 per year after year one for minimal benefits.
- No rewards or bonuses, even though fees exceed most secured-card alternatives.
- High APR makes it costly to ever carry a balance—interest can negate any credit-building efforts.
- Low credit limit prevents much breathing room, and there’s no clear path to upgrades or limit increases.
🔐 Security Features & Management Tools
- Zero Fraud Liability covers unauthorized charges.
- Identity theft protection is available via Mastercard suite.
- Chip-enabled security and online/mobile account access track statements, set alerts, and review payments.
📄 Terms Snapshot & Smart Usage Tips
| Feature | Details |
|---|---|
| Annual Fee | $75–$175 first year; $49–$99 thereafter |
| Monthly Fee (Year 2+) | $12.50/mo (~$150/year) |
| Regular APR | 35.9% variable |
| Credit Limit | Typically up to $700 before fees |
| Security Deposit | Not required |
| Rewards & Welcome Bonus | None |
| Credit Reporting | Yes, to all three bureaus |
| Alternative Recommendations | Try secured cards with no/low annual fees (e.g., Discover, Capital One) |
💡 Pro Tip: Only use this card if secured options aren’t accessible and you can pay it off immediately each month. The high fees and APR make it suited only as a short-term solution.
✅ Who Should—And Shouldn’t—Apply
Good Fit If You:
- Have fair-to-poor credit (300–650) and need unsecured approval.
- Have no secure credit-building alternatives, and don’t mind high fees in exchange for access.
Avoid If You:
- Qualify for secured or low-fee unsecured cards—they often cost less and offer upgrade paths.
- Plan to carry a balance—the 35.9% APR will bury you in interest.
- Want a rewards program or ongoing benefits to offset costs.
🚀 How to Apply
- Visit the Milestone Mastercard website (or a trusted partner) to check current fee offers.
- Use the prequalification tool to see your terms without impacting your credit score.
- Submit your application—providing personal details like name, address, SSN, employment info.
- If approved, review your disclosed annual and monthly fees along with your credit limit.
- Activate the card, make a small purchase, and always pay in full and on time to maximize its credit-building potential.
🎯 Final Take
The Milestone Mastercard can open the door to unsecured credit—even with bad credit or no deposit. However, its hefty annual and monthly fees, lack of rewards, and sky-high APR make it a poor long-term option. If you have no other choice and intend to pay off the balance each cycle, it may help rebuild credit—but ideally, you should graduate to a more cost-effective card as soon as possible.
