Milestone credit card evaluation: Not the best option for building credit

Overview of the Milestone Mastercard

Establishing credit can be tough. The Milestone Mastercard® from the Bank of Missouri is one of several options designed for credit building. It doesn't require a security deposit and offers a decent minimum credit limit for those just starting out, but its annual fee for the first year is quite excessive for this type of card. Card rating*: ⭐

*The card rating reflects the views of TPG's editors and is not swayed by the card issuer.

Initially, some benefits of the Milestone Mastercard for credit building may look attractive. However, when you consider the $175 annual fee in the first year, this card quickly falls to the bottom of the ranking.

Although the annual fee for the Milestone Mastercard reduces to $49 in later years, you won't actually save money. Beginning in the second year, you'll incur an extra $12.50 monthly maintenance fee. When combined, these costs result in a staggering $199 per year to maintain this card.

With such fees, this card better offer exceptional benefits to be even remotely worth considering. Notably, one major advantage is that no minimum credit score is needed for approval.

Let’s take a closer look at this card to determine if it provides any value to justify these steep fees.

The details for the Milestone Mastercard have been independently sourced by Dinogo. The information presented on this page has not been reviewed or endorsed by the card issuer.

Advantages and disadvantages of the Milestone Mastercard

Benefits of the Milestone Mastercard

The Milestone Mastercard does not offer any kind of welcome bonus. While this is typical for credit-building cards, it is somewhat unusual for a card with such a steep annual fee.

This card presents two significant advantages: it doesn't require a security deposit, and it offers a minimum starting credit limit of $700.

Many credit-building cards necessitate a security deposit for approval, using that deposit as your initial credit line. However, since the Milestone Mastercard does not require a deposit, you won’t need any upfront cash when you apply (other than the $175 annual fee).

While a $700 credit limit isn't impressive, it surpasses the initial limits of many entry-level cards, which can sometimes be as low as $200.

Depending on your financial status, the Milestone Mastercard might provide an even higher starting limit. Furthermore, this card reports to all three credit bureaus, includes fraud protection, and can be used wherever Mastercard is accepted.

Although these benefits are reasonable for a credit-building card, they are quite underwhelming for a card with the high fees associated with the Milestone Mastercard.

Earning and redeeming rewards with the Milestone Mastercard

The Milestone Mastercard does not offer any rewards, meaning you won’t earn points, miles, or cash back from your purchases. While this is typical for basic credit-building cards, it's disappointing that this one, with its high ownership costs, has nothing to provide in this area.

If you’re seeking a starter card that offers rewards, you should consider one of our suggested alternatives instead of the Milestone Mastercard.

What cards rival the Milestone Mastercard?

Finding alternatives to this card is easy; nearly any other card available on the market outshines the Milestone Mastercard. Here are three options to think about:

• If you're looking to earn rewards while building your credit: The Capital One Quicksilver Secured Cash Rewards Credit Card has no annual fee (see rates and fees) and provides 1.5% cash back on every purchase. However, a minimum security deposit of $200 is required at account opening. For more details, check out our complete review of the Capital One Quicksilver Secured.
• If you prefer Chase: The Chase Freedom Rise® is an excellent choice for individuals with low or no credit. While having a Chase checking or savings account with at least $250 is highly recommended, it’s not strictly necessary. This card offers 1.5% back on all purchases, and you'll start building a relationship with Chase, which can facilitate approval for their other cards.
• If you're a student: The Capital One Savor Student Cash Rewards Credit Card is ideal for college students aiming to build or enhance their credit. This card features an impressive earning rate of 3% cash back on dining, entertainment, popular streaming services, and grocery purchases (excluding superstores like Walmart® and Target®). Like the other cards mentioned, there’s no annual fee (see rates and fees).

For more choices, explore our recommendations for the best beginner credit cards.

The details for the Chase Freedom Rise have been independently gathered by Dinogo. The card information presented here has not been reviewed or endorsed by the card issuer.

Is the Milestone Mastercard a good option?

I have never been more certain in advising against a credit card. With few benefits and excessively high fees, the Milestone Mastercard ranks among the least favorable options available. It's better to choose a card with lower fees and greater benefits instead.

Final thoughts

The Milestone Mastercard serves as a credit-building tool that doesn't require a credit score or security deposit. However, its high fees and absence of reward-earning potential make it one of the least favorable options for beginners. Most individuals would be better served by choosing a card like the Capital One Quicksilver Secured or the Freedom Rise instead.