Milestone Mastercard Review: High Fees & Low Limits

The Milestone® Mastercard® credit card targets consumers with bad or no credit. Genesis Financial Solutions Card Services, Inc. markets it as a second chance for rebuilding credit. However, the card comes with significant drawbacks you need to understand first.

The card appeals to specific groups:

Rebuild Your Credit Without High Fees

Skip the $99 annual fees and 24.90% APR. Better credit building options exist that won't drain your wallet or trap you with low limits forever.

Improve Your Score

College students with minimal credit history
Consumers with below-average credit scores
Anyone wanting to avoid hard credit inquiries

Milestone® is an unsecured card. You won’t need a security deposit to get started. Pre-approval is available for almost all interested consumers. But there’s a catch worth examining closely.

Milestone Mastercard Benefits

The Milestone® Mastercard® offers a few advantages for credit rebuilders:

No security deposit required: You get an unsecured credit line without depositing money upfront.
Bad credit accepted: Consumers with credit scores below 630 can qualify.
Soft credit pull for pre-qualification: Your credit score won’t take a hit during the initial review.
Reports to all three bureaus: Positive payment history helps raise your credit score over time.

If you’re facing debt collection, our partner Solo can help you respond to lawsuits and settle debt.

Major Drawbacks of Milestone Mastercard

The disadvantages often hide in the fine print. Understanding these drawbacks protects you from costly surprises.

High Annual Membership Fees

Milestone® Mastercard has three variants with different fees. You won’t know which one you qualify for until after approval. Annual fees range from $35 to $99 per year. The third option costs $59 annually.

The $99 variant offers a first-year fee of $75. After that, you’ll pay $99 every year. The fee comes directly out of your credit limit. Starting with a $300 limit means you only have $265 to spend.

The $700 limit card charges $175 the first year. Subsequent years cost $49. That leaves you with just $525 in available credit initially.

Steep Interest Rates

Consumers struggling financially face punishing interest rates. No standard APR exists across all accounts. You’ll discover your rate only after approval.

Interest rates can reach 24.90% on purchases. Late payments trigger an additional 40% penalty fee. Cash advance APR ranges between 35% and 41%.

Zero Rewards Program

Milestone® offers no rewards for card usage. Responsible spending earns you nothing back. Many competing cards provide cash back or points.

No Introductory Rate

New customers don’t receive promotional APR periods. Some credit cards offer 0% APR for the first year. Milestone® charges interest from day one.

Balance Transfers Not Allowed

You cannot transfer existing debt to Milestone®. The card won’t help consolidate other credit card balances.

Fixed Credit Limits

Milestone® never increases your credit limit. The $700 maximum remains unchanged for the life of your account. You’re stuck with your starting limit permanently.

Low Limits Hurt Credit Utilization

Credit experts recommend using only 30% of your available credit. With a $265 limit, that means spending just $79 monthly. Exceeding this threshold damages your credit score instead of improving it.

The low limit makes building credit difficult. You could actually lower your score with this card.

Real Consumer Complaints

Better Business Bureau reviews reveal frustrated customers. One consumer reported never receiving their card despite being charged fees. The company reported the account as active to credit bureaus.

Another customer’s credit score dropped after Milestone® reported missed payments. The consumer never activated or used the card. The company eventually closed the account without resolution.

Should You Apply for Milestone Mastercard?

Consider these critical factors before applying:

High fees eat into your already low credit limit
Steep APR targets consumers who can least afford it
The credit limit never increases regardless of payment history
Low limits make maintaining good credit utilization nearly impossible

Read all terms and conditions carefully before signing up. Understand exactly which variant you qualify for before accepting. Make on-time payments if you do get the card.

Better alternatives exist for rebuilding credit. Our partner Kikoff offers credit building with lower fees and more flexible terms.

Frequently Asked Questions

What credit score do I need for Milestone Mastercard?

Milestone Mastercard accepts applicants with credit scores below 630. The card targets consumers with bad or no credit history who need to rebuild their scores.

How much does Milestone Mastercard charge in fees?

Annual fees range from $35 to $99 depending on which variant you qualify for. The $700 limit card charges $175 the first year and $49 after. Fees are deducted directly from your credit limit.

Can I increase my Milestone Mastercard credit limit?

No, Milestone does not offer credit limit increases. Your starting limit remains fixed for the entire life of your account, even with perfect payment history.

What is the APR on Milestone Mastercard?

APR varies by applicant but can reach 24.90% on purchases. Late payments incur an additional 40% penalty fee. Cash advance APR ranges between 35% and 41%.

Does Milestone Mastercard help build credit?

Milestone reports to all three credit bureaus, which can help build credit. However, the low credit limits make it difficult to maintain proper credit utilization ratios below 30%, potentially hurting your score.

Milestone Mastercard Review: High Fees, Low Limits Explained