What Bank Issues the Milestone Credit Card? (2024 Facts)

The Milestone Credit Card comes from Bank of Missouri, a 130-year-old FDIC-insured institution based in Perryville, Missouri. If you're rebuilding credit and considering this card, that banking relationship matters more than you might think.

Bank of Missouri: The Institution Behind Milestone

Founded in 1891, Bank of Missouri has operated continuously for over a century. It's not a fintech startup or a shadowy offshore entity. Your deposits and payments go to a legitimate community bank with federal deposit insurance.

The bank doesn't service Milestone cards directly. That job falls to Concora Credit Inc., a third-party servicer. When you call customer service or dispute a charge, you're talking to Concora, not Bank of Missouri employees.

Key Bank Details

• Full name: Bank of Missouri
• Headquarters: Perryville, Missouri
• Founded: 1891
• FDIC insured: Yes
• Primary servicer: Concora Credit Inc.
• Customer service: (888) 547-6541
• Mailing address: PO Box 309, Perryville, MO 63775-0309

Bank of Missouri also issues the First Access Visa and Total Visa cards, both targeted at subprime borrowers. The bank offers traditional services like checking accounts, auto loans, and mortgages, but credit cards for credit-challenged consumers are a major revenue line.

How the Milestone Card Actually Works

Milestone markets itself as an unsecured credit card for people with poor to fair credit. That "unsecured" label means no security deposit required, unlike most credit-building cards. But you pay for that convenience through fees.

Annual Fee Structure

Expect an annual fee between $49 and $125, charged in the first year. The exact amount depends on your credit profile at application. Bank of Missouri doesn't publish the criteria publicly, so you won't know your fee until after approval.

Starting in year two, the card adds a monthly maintenance fee of $10.40. That's $124.80 per year on top of the annual fee. Over five years, you'll pay roughly $700 in fees alone, assuming you keep the card and never upgrade.

Credit Limit and APR

Your initial credit limit will fall between $375 and $700. For context, the average American credit card limit is $29,855, according to Experian's 2023 data. A $500 limit makes it nearly impossible to keep your utilization below the recommended 30% threshold if you use the card for everyday purchases.

The APR sits at 35.9%, non-variable. That's more than double the national average of 16.3% and among the highest in the industry. The "non-variable" aspect means your rate won't increase with the Federal Reserve's prime rate, but it also won't decrease. You're locked in.

Monthly Maintenance Fee

No monthly fee applies during year one. Starting in year two, Bank of Missouri charges $10.40 per month whether you use the card or not. Miss a payment and you'll owe both the monthly fee and a late payment penalty.

Is Bank of Missouri Legitimate?

Yes. Bank of Missouri operates under federal banking regulations and carries FDIC insurance up to $250,000 per depositor. That insurance doesn't cover credit card debt, but it confirms the bank meets federal standards for safety and soundness.

The bank's credit card offerings target subprime borrowers, a segment that major banks largely abandoned after the 2008 financial crisis. Subprime lending is legal and regulated. High fees and interest rates reflect the increased risk of lending to people with damaged credit.

That said, legitimate doesn't mean generous. Bank of Missouri structures Milestone to maximize fee income from borrowers who have limited alternatives. You're paying a premium to access credit without a deposit.

Who Should Consider the Milestone Card?

The Milestone card makes sense in narrow circumstances. If you meet all three of these conditions, it might work:

1. You can't qualify for a secured card from a major issuer (Chase, Discover, Capital One)
2. You need to build credit urgently and can't wait for alternative methods
3. You have the discipline to pay the balance in full every month and avoid interest charges

If you carry a balance at 35.9% APR, the card becomes expensive fast. A $500 balance costs you roughly $180 in annual interest, plus the annual fee and monthly maintenance charges.

Better Alternatives for Most People

Before applying for Milestone, check these options:

• Discover it® Secured: No annual fee, 2% cash back on gas and restaurants up to $1,000 per quarter, 1% on everything else. Requires a $200 minimum deposit.
• Capital One Platinum Secured: $0 annual fee, $49 or $99 deposit depending on credit, potential credit line increases after five on-time payments.
• Chime Credit Builder: No fees, no interest, no credit check. Requires a Chime checking account. Reports to all three bureaus.

Each of these costs less than Milestone over a 12-month period, even accounting for security deposits you'll get back when you close the account or upgrade.

Application Process and Approval Odds

Milestone offers prequalification with a soft credit pull. If prequalified, you'll submit a full application that triggers a hard inquiry. That inquiry will ding your credit score by roughly 5-10 points temporarily.

Bank of Missouri evaluates your credit report, income, and existing debt. Approval rates aren't published, but anecdotal reports suggest high approval odds for applicants with scores between 500 and 650. If your score is below 500 or you have recent bankruptcies, approval becomes less likely.

Once approved, you'll receive the card within 7-10 business days. Activate it and the credit line becomes available immediately.

Reporting and Credit Building

Bank of Missouri reports Milestone account activity to all three major credit bureaus: Equifax, Experian, and TransUnion. On-time payments help your credit score. Late payments hurt it.

The low credit limit poses a utilization problem. If your limit is $500 and you charge $200, your utilization is 40%, above the ideal 30% threshold. High utilization can suppress your credit score even if you pay on time.

To maximize credit-building impact, use the card for one small recurring charge (like a streaming subscription) and pay it in full each month. Keep utilization below 10% if possible.

Customer Service and Disputes

Concora Credit handles customer service for Milestone cardholders. You can reach them at (888) 547-6541. Online account management is available through the Milestone portal.

If you need to dispute a charge or report fraud, contact Concora immediately. Federal law limits your liability for fraudulent charges to $50 if you report within two business days, and $0 if the card itself wasn't lost or stolen.

Customer reviews for Concora are mixed. Common complaints include long hold times and difficulty reaching a live representative. Plan to spend 15-20 minutes on hold during peak hours.

Fees You'll Actually Pay Over Time

Assume you keep the Milestone card for three years with a $500 credit limit and pay in full each month to avoid interest. Here's what you'll spend:

• Year 1: $75 annual fee (mid-range estimate)
• Year 2: $75 annual fee + $124.80 monthly fees = $199.80
• Year 3: $75 annual fee + $124.80 monthly fees = $199.80
• Total: $474.60

If you carry an average $300 balance and pay only the minimum:

• Interest over three years: Approximately $325
• Fees over three years: $474.60
• Total cost: $799.60

That's $799.60 to borrow an average of $300 for three years. A secured card with a $200 deposit and no annual fee would cost you $0 in the same scenario.

When to Close or Upgrade

Once your credit score reaches 650 or higher, you should upgrade to a card with better terms. Most issuers allow you to request a product change to a no-annual-fee card without a hard credit pull.

If Bank of Missouri won't upgrade you, close the Milestone card and apply elsewhere. The credit history will remain on your report for up to 10 years, continuing to benefit your score even after closure.

One caution: closing your oldest credit card can reduce your average account age and temporarily lower your score. If Milestone is your only credit card, keep it open until you have at least two other active accounts.

What If You're Drowning in Debt?

If you're considering Milestone because you're buried in existing credit card debt, building more credit might not be your first priority. You need a plan to handle what you already owe.

Start by listing every debt you have: balances, interest rates, minimum payments. If the total exceeds 40% of your gross income, you're in high-risk territory. At that point, credit building takes a back seat to debt relief.

Options include debt settlement, credit counseling, or in severe cases, filing for bankruptcy. Each has consequences, but so does ignoring unsustainable debt while paying $10.40 per month for a card you can't afford to use.

If you're unsure whether bankruptcy makes sense for your situation, run through our free bankruptcy screener. It takes three minutes and gives you a clear picture of your options without any obligation.

The Bottom Line

Bank of Missouri is a legitimate, FDIC-insured institution that's been around since 1891. The Milestone Credit Card is legal, regulated, and will help you build credit if used correctly. But it's an expensive tool, and for most people, a secured card from a major issuer will cost less and offer more flexibility. Shop around before you apply, and if you're dealing with overwhelming debt, address that problem before adding new credit accounts.