Milestone Credit Card: Benefits, and How to Apply
Are you looking for a way to rebuild your bad credit score history? The Milestone credit card is a good choice for anyone with a bad credit score history. Find out Milestone Credit Card benefits, how to apply for it, and how to reset your milestone credit card PIN as well as other alternative options. There is more to this card than we thought, and this post will help you decide if it is what you need.
Milestone Credit Card Review
The Milestone Credit Card is best suited for people with a poor credit score and is mainly a secured credit card.
Created by The Bank of Missouri, this app acts as a credit repair tool and credit management solution with a simple user interface.
People who can’t qualify for a traditional credit card due to low credit scores without requiring a deposit on the account enjoy this opportunity.
It reports to all three main credit reporting agencies and assists in the process of credit repair, as long as proper usage is employed.
It offers a fixed and low APR while enabling borrowers to pre-qualify without touching their credit scores but has an annual fee and no rewards program.
It’s a decent credit card for building or rebuilding credit; however, competitors may have lower rates and other perks.
Benefits of the Milestone Credit Card
Understanding the Milestone credit card, you might have been attracted by a benefit you heard or yet another you are about to discover.
Some of the advantages of being a Milestone credit cardholder include:
1. Credit Building Potential
The Milestone Card is a credit card that is specifically made to assist people with their credit status. This is a basic benefit that attracts most customers to use this card.
Moreover, since this card is reported to the major credit bureaus Equifax, Experian, and TransUnion, its proper and regular use can help rebuild credit rating gradually.
2. No Security Deposit is Required
Milestone Credit Card does not have to be backed by a security deposit which makes it easier for persons who may not be able to afford to pay for a deposit that most credit card companies with the poorest credit ratings provide.
3. Pre-qualification Process
One of the features that the customer will appreciate is the fact that they can pre-qualify for a Milestone Credit Card without even appearing on the credit report.
This process gives you the probability of being approved for credit without the disadvantage of having a hard credit inquiry, which is likely to cause a short-term drop in your credit score.
4. Fixed APR
The Discovery credit card has a fixed APR on purchases. This means that the elementary interest rate will remain steady and fairly simple to predict.
It can give cardholders the necessary predictability when it comes to payments and their overall credit balance.
5. Nationwide Acceptance
This credit card is a Mastercard and, as such, can be used to make purchases in the various locations where it is accepted globally.
This has made it easier for many people to be acceptable since it offers flexibility and ease of use which can be especially important when making purchases or traveling.
Shortcomings of the Milestone Credit Card
To every benefit, there’s always a shortcoming which also applies to the Milestone credit card.
Therefore, you should be mindful of the following issues associated with the Milestone credit card such as:
1. Annual Fee
Another factor that makes it a disadvantage to have the Milestone Credit Card would be its annual fees, which may cost anywhere between $35 to $99 per year on average, according to the applicants’ credit scores.
This fee may be costly; hence, it poses a challenge for people who are struggling to make ends meet to meet their better economic status.
2. High APR
The highlight is that while the APR is set, this rate is comparatively high compared to other credit cards.
A relatively high interest rate may result in high-interest fees should one be unable to fully clear the credit card balance after a certain period.
This ultimately makes it costly for those who do not clear their balances in full within a certain period.
3. Limited Rewards and Benefits
For example, the Milestone Credit Card does not have a rewards program that allows a cardholder to earn points and get other privileges that many credit card companies offer their clients.
It is in this regard that this fails to offer any added gains, which would have made it more appealing to users, especially for those striving to get leverage on the amount that they spend.
4. Foreign Transaction Fees
The card comes with foreign transaction fees, which means that it is not ideal when it comes to travel or purchases in a foreign country. These fees could total and make use of the card abroad costly.
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Milestone Credit Card Alternative Options
Prospective users have to look at other comparable credit cards that could offer better utility or cheaper rates than the Milestone Credit Card.
1. Chime Credit Builder Secured Visa Credit Card
Milestone Mastercard is one of the best credit cards for building or rebuilding credit, but the Chime Credit Builder Visa Card outperforms it in several ways.
There are no fees associated with Chime while using it, whereas, with Milestone, the user is charged $175 in the first year of use and $49 annually thereafter.
Chime buys your transfers to your Credit Builder account and the credit limit is up to $700 with Milestone.
Milestone credit card carries an interest rate of 24% and on the other hand, Chime has no interest or a late annual percentage rate (APR) of 0%.
2. Discover It Secured Credit Card
Nevertheless, in comparison with the overall impact, the Discover it Secured Credit Card is rather preferable in case of poor credit status than the Milestone Mastercard.
For its part, Discover does not charge an annual fee, while they have $175 for the first year and $49 after that.
The Discover cash advance limit is not given based on the security deposit, although it ranges up to $700 at Milestone.
Discover’s APR is 27. Milestone’s proportion remained at 35% during the same period, thus leaving Modelesque at 49%. 9%.
This card offers 2% cash back on gas and dining up to $1,000 in the first three months and 1% on everything else, with the total cash back earned at the end of the year.
Both of these cards are provided by this company and they use the credit bureau services to report information to their key credit bureau firms including Equifax, Experian, and TransUnion.
3. Secured Credit Cards
Comparing secured credit cards like Discover It Secured Credit Card or Capital One Platinum Secured Credit Card, require a refundable security deposit and, generally, have a few fees and are able to offer rewards.
These cards may be the best for establishing credit, or even re-establishing it, of which people could most definitely benefit.
4. Credit Builder Loans
Credit builder loans are usually meant to better the credit status of individuals by giving them a chance to borrow small amounts of money at some rate of interest with affordable repayment terms.
These work in a way that the borrowed amount is saved in a special account which is paid off in monthly installments.
After this loan is paid off, the money is forwarded to you, and the favorable record of payment is reported to the credit reference agencies.
5. Store Credit Cards
This is why financially flexible credit cards like the Amazon Store Card or the Target REDcard can be a good way to establish credit while using it to get rewards for shopping at a specific store.
6. Credit Cards for Fair Credit
Overall, if a fair credit holder targets cards that they are most suited for, they stand a better chance at getting competitive fees and APRs compared to the Milestone credit card.
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How to Apply for the Milestone Credit Card
This section provides instructions on how to apply for the Milestone Credit Card.
It is easy to apply for the Milestone Credit Card, and this entails completing an online application form. Here are the steps:
1. Visit the Milestone Website
Milestone offers a credit card to their users and the way to apply for it is by going to the company’s official website and then clicking on “Pre-Qualify”.
2. Fill Out and Submit the Form
Fill in your own details in the provided spaces such as the name, address, Social Security Number, and other relevant financial data.
Fill out the pre-qualification form with the response that you are expected to receive. This will not lead to a reduction in your credit score.
3. Review Your Offer
Terms and conditions governing the use of the card, are communicated to you in an offer, and the fee that you are required to pay annually.
4. Complete the Application
In case you would like to continue, they fill out the full application form. This will lead to a hard credit inquiry which is not good for your credit report.
5. Wait for Approval
After the completion of the above formats, simply wait for the approval decision.
If it is approved, your Milestone Credit Card will be mailed to the address you provided, along with a document on activation of the card.
How to Reset Your Milestone Credit Card PIN
That is to say, the PIN for the Milestone Credit Card may be changed through customer service. Here’s how:
1. Call Customer Service: Call the toll-free number mentioned behind the Milestone Credit Card for any assistance required.
2. Authenticate Your Identity: Give out the information to enable the card issuer to authenticate you, and this includes, your card number, Social Security number, and any other detail the card issuer may require from you.
3. Request PIN Change: Let the customer service representative know that I would like to change my ATM user PIN.
4. Follow Instructions: Store these numbers away and use the instructions given by the representative to help you change your /PIN.
5. Confirm the Change: After the change, check the new PIN and ensure it is working by testing the transactions that require a PIN.
Who Should Use the Milestone Credit Card?
All in all, if you have bad credit and do not want to put down a security deposit, the Milestone Credit Card without an annual fee is right for you. It is an excellent option for those who:
1. Anyone Who Needs to Rebuild Credit: Through timely payments and other responsibilities, users can observe a positive change in their credit score while it gets reported to Equifax, Experian, and TransUnion.
2. Anyone Who Cannot Afford a Security Deposit: In this aspect, it needs to be mentioned that applicants do not have to provide a security deposit while applying for a Milestone Credit Card as it is the case with secured credit cards.
3. A Customer Who Prefers a Fixed APR: While the fixed APR helps in predicting interest charges, it lacks efficiency when it comes to demanding higher interest.
4. Someone With Value Pre-Qualification: The feature that allows users to search for pre-qualification without pulling credit scores is also considered to be a ‘Plus’ factor.
Key Takeaway
The Milestone Credit Card is a useful device for anyone who intends to fix their credit. No security deposit, credit building, and a fixed APR are some benefits that make it suitable for many.
However, it has a very steep annual fee, and there are no reward options, as well as high APR which might affect some users.
The decision should be made based on the comparison of the other available options and the judgment of the financial requirements of an individual.
As far as credit cards with limits of $500 are concerned, the use of the ‘Milestone Credit Card’ can build a positive credit history for those who use it responsibly.
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