The MyMilestoneCard is a secured credit card that can help you build or rebuild your credit with responsible use. A secured credit card requires you to make a refundable security deposit that acts as your credit limit. For example, if you deposit $200, you can spend up to $200 on your card. This reduces the risk for the card issuer and makes it easier for you to qualify for the card.
Unlike most secured cards, the MyMilestoneCard does not require a security deposit. Instead, it charges an annual fee that ranges from $35 to $99, depending on your creditworthiness. The card also has a high APR of 28.24% and a monthly maintenance fee of $5 after the first year. These fees can add up quickly and eat into your available credit.
The benefits of the MyMilestoneCard are that it reports your payment history to the three major credit bureaus, which can help you improve your credit score over time. It also offers some Mastercard benefits, such as identity theft protection and zero liability for unauthorized transactions. The card is accepted at millions of locations worldwide, so you can use it for everyday purchases and emergencies.
What are the Benefits of the MyMilestoneCard?
The MyMilestoneCard has four main benefits that can help you build and access credit. These are:
No security deposit required: Unlike some other credit cards for bad credit, the MyMilestoneCard does not require you to put down any money upfront to get the card. This means that you don’t have to tie up your cash in a deposit that you can’t access until you close your account. This can be useful if you have limited funds or need to use your money for other purposes.
Credit bureau reporting: The MyMilestoneCard reports your payment history to the three major credit bureaus: Equifax, Experian, and TransUnion. This means that if you pay your bills on time and keep your balance low, you can improve your credit score over time. A higher credit score can help you qualify for better credit cards, loans, and interest rates in the future. It can also help you save money on insurance, utilities, and other services that use your credit score to determine your rates.
Mastercard acceptance and protection: The MyMilestoneCard is a Mastercard, which means that it is widely accepted and offers fraud protection. You can use your card anywhere Mastercard is accepted in the U.S. and enjoy the convenience and security of paying with plastic. You can also benefit from the Mastercard Zero Liability Protection, which protects you from unauthorized charges in case your card is lost or stolen.
You can also access your account online or by using the mobile app, where you can view your transactions, statements, and credit score, as well as make or schedule payments, set up autopay, request paperless statements, update your personal information, and contact customer service.
Easy and quick pre-qualification: The MyMilestoneCard offers an easy and quick pre-qualification process that does not impact your credit score. You can apply online at www.mymilestonecard.com, or by mail using the pre-qualified offer you may have received. You just need to provide some basic information, such as your name, address, phone number, email, date of birth, and Social Security number.
You also need to provide your income and employment information, such as your monthly income, employer name, and phone number. You can also choose to receive paperless statements and enroll in autopay. After you submit your application, you will receive an instant decision. If you are approved, you will receive your card and your credit limit in the mail within 14 days.
How to Use the Benefits of the MyMilestoneCard Effectively?
While the MyMilestoneCard has some benefits that can help you build and access credit, you need to use them effectively to get the most out of your card. Here are some tips on how to use the benefits of the MyMilestoneCard to your advantage:
Pay your balance in full every month: The best way to avoid interest charges and fees on your MyMilestoneCard is to pay your balance in full every month. This will also help you improve your credit utilization ratio, which is the percentage of your available credit that you use. A lower credit utilization ratio can boost your credit score and make you look more responsible to lenders.
To pay your balance in full every month, you need to budget your expenses and only use your card for purchases that you can afford to pay off. You can also set up autopay to automatically deduct the full amount from your checking account or debit card every month. This way, you don’t have to worry about missing a payment or paying late fees.
Keep your balance below 30% of your credit limit: Another way to improve your credit utilization ratio and your credit score is to keep your balance below 30% of your credit limit. For example, if your credit limit is $300, you should keep your balance below $90. This will show the credit bureaus that you are not maxing out your card and that you have enough credit available for emergencies.
To keep your balance below 30% of your credit limit, you need to monitor your spending and your account regularly. You can also make multiple payments throughout the month to reduce your balance. You can also request a credit limit increase, but this may not be possible with the MyMilestoneCard, as the card does not offer any credit limit increases.
Use your card regularly but sparingly: To build a positive payment history and a good credit score, you need to use your card regularly but sparingly. This means that you should use your card for small and necessary purchases that you can pay off in full every month, such as groceries, gas, or utilities. This will show the credit bureaus that you are using your card responsibly and that you are not relying on credit to fund your lifestyle.
You should also avoid using your card for large and unnecessary purchases that you can’t pay off in full, such as vacations, electronics, or clothing. This will prevent you from accumulating debt and paying interest and fees. You should also avoid using your card for cash advances, as they have a higher APR and a fee of either $5 or 5% of the amount, whichever is greater.
Review your statements and credit score regularly: To make sure that you are using your card effectively and that your account is accurate and secure, you need to review your statements and credit score regularly. You can access your statements and credit score online or by using the mobile app. You can also request paperless statements to save paper and money.
You should check your statements for any errors, such as unauthorized charges, duplicate charges, or incorrect fees. You should also check your credit score for any changes, such as increases, decreases, or discrepancies. If you find any errors or issues, you should contact the customer service team as soon as possible to resolve them.
How to Avoid the Pitfalls of the MyMilestoneCard?
While the MyMilestoneCard has some benefits that can help you build and access credit, it also has some drawbacks that you need to be aware of. The MyMilestoneCard is very expensive and offers no rewards or benefits, except for fraud protection and online account management. The card charges a high annual fee, a monthly maintenance fee, a high APR, and various other fees.
These fees can add up quickly and eat into your credit limit and your budget. The card also has a low credit limit, which can limit your purchasing power and your credit utilization ratio. The card also does not offer any credit limit increases, which means that you are stuck with the same limit for the life of the card.
Here are some tips on how to avoid the pitfalls of the MyMilestoneCard:
- Compare the card with other options
Before you apply for the MyMilestoneCard, you should compare it with other credit card options that may suit your needs better. There are many other credit cards for bad credit that offer better terms, lower fees, higher limits, and more benefits. Some of these options include secured credit cards, credit-builder loans, and authorized user status.
You can find more information about these options in the previous section of this blog post. You can also use websites, blogs, forums, and social media to read reviews and ratings of the MyMilestoneCard and other credit cards.
However, you should be careful not to rely solely on reviews, as they may not be accurate, unbiased, or representative of the general population. You should also do your own research and compare the MyMilestoneCard with other credit card options using the official websites and the card agreements for the most accurate and updated information.
- Plan to use the card for a short time
If you decide to apply for the MyMilestoneCard, you should plan to use it for a short time and only as a stepping stone to better credit cards. The MyMilestoneCard is not a good choice for long-term use, as it is very expensive and offers no rewards or benefits. You should use the card only to improve your credit score and qualify for better credit cards, loans, and interest rates in the future.
You should also plan to close your account as soon as you get a better credit card, as keeping the card open will cost you money and take up your credit limit. However, you should not close your account until you pay off your balance in full, as closing your account with a balance will hurt your credit score and incur interest and fees. You should also not close your account too soon, as keeping your account open for at least six months will help you establish a positive payment history and a good credit score.