![]() ![]() The Milestone Mastercard is no exception. ![]() If you pay off your balance and have no outstanding fees, you can get your money back when you close the account or graduate to an unsecured card from the same issuer.Īlong with hefty fees, one of the main downsides of unsecured credit-building cards is that they tend to offer lower credit limits. Tip: Unlike an annual fee, any deposit you put down on a secured card is refundable. If that’s something you’d rather avoid, you could look at the Milestone Mastercard’s annual fee as simply the short-term cost of building credit with an unsecured card. The tradeoff is that these cards require a security deposit. The Discover it® Secured Credit Card and the Capital One Platinum Secured Credit Card, meanwhile, charge no annual fee at all. For example, the OpenSky® Secured Visa® Credit Card guarantees all cardholders a $35 annual fee, with no credit check required. On the other hand, a number of secured cards charge lower fees or no annual fee at all. For example, the Destiny® Mastercard® charges an annual fee of $59 to $99, and the Reflex® Platinum Mastercard® charges an annual fee of $75 to $125, plus additional monthly fees after your first year. Indeed, if you’re lucky enough to qualify, the card’s low-end annual fee is reasonable compared to many unsecured credit-building alternatives. While this is fairly pricey, especially given the card’s limited perks, it’s on par with the rate you’ll find on many unsecured cards designed for people with poor credit. What’s worse, you won’t know where in that range your annual fee falls before you apply. Depending on your credit history, you’ll pay between $35 and $75 in your first year just to hold the card (if you’re assigned the high-end annual fee, this will increase to $99 in your second year). Like nearly all unsecured credit-building cards, the Milestone Mastercard carries an annual fee. See related: How to build credit High annual fee for some cardholders You’ll almost certainly be better off applying for a secured credit card that charges no annual fee – but the Milestone Mastercard could make sense as a credit-building tool if you’re diligent about paying off your balance and view the card as merely a stepping stone to better options down the line. Though the card carries a high annual fee, high APR, low credit limit and next to nothing in the way of cardholder perks, it requires no deposit, offers good approval odds and comes with relatively straightforward terms. Viewed through this lens, the Milestone Mastercard is a mixed bag. Since many cards designed to help people rebuild their credit history – especially unsecured credit-building cards – come loaded with heavy fees and restrictions, the wrong choice could leave you in worse financial shape than when you started. Opening a new credit card is an important step as you work to repair bad credit, but knowing where to start can be a challenge. ![]()
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