What the Milestone Credit Card is and who it's for

The Milestone Credit Card is a secured credit card issued by Milestone Bank. You put down a cash deposit — typically between $200 and $2,500 — and that deposit becomes your credit limit. You use the card like any other credit card, pay your monthly bill, and the bank reports your payment history to the three major credit bureaus: Equifax, Experian, and TransUnion.

This card is designed for people rebuilding credit after missed payments, collections, or a bankruptcy. It's also used by people with no credit history at all. The deposit stays in a separate account and is not touched unless you stop paying your bill; it's collateral, not a payment.

The card charges an annual fee (the amount varies and changes over time, so check the current terms before you proceed). There is no grace period on purchases, meaning interest starts accruing when ready if you carry a balance. That makes this card most useful if you plan to pay your full balance each month.

Key Takeaways

  • You need a deposit of $200 to $2,500 to open the account; this deposit is held as collateral and returned when you close the card or graduate to an unsecured card.
  • The card reports to all three credit bureaus, so on-time payments build your credit history over time.
  • An annual fee applies, and there is no grace period on purchases, so carrying a balance costs more than it would on other cards.
  • You can request to convert to an unsecured card after demonstrating responsible use, usually within 6 to 18 months of opening the account.
  • The process process is online and takes about 15 minutes; approval decisions come within one to three business days.

What you need before you start

Gather these documents and information before you begin the online process:

  • A valid government-issued photo ID (driver's license, passport, or state ID card)
  • Your Social Security number
  • Your current address
  • Your employment information (employer name and how long you've worked there)
  • Your annual income or household income
  • A bank account where you can transfer your deposit (the deposit must come from a U.S. bank account in your name)

You do not need a perfect credit score or any credit history at all to open this card. The bank will pull your credit report, but the deposit is what secures the account, not your credit score.

The online process process

Go to the Milestone Bank website and select "explore Now" or "Open an Account." The process asks for your personal information, employment details, and income. It takes about 10 to 15 minutes to complete.

You will be asked to choose your deposit amount during the process. The higher your deposit, the higher your credit limit. For example, a $500 deposit gives you a $500 credit limit. You do not have to use the full limit; you can charge $50 and pay $50 if you want.

After you submit the process, Milestone Bank will review it and send you a decision within one to three business days. If you are approved, you will receive instructions on how to transfer your deposit to the bank. The deposit must come from a U.S. bank account in your own name; you cannot use someone else's account or a wire transfer from outside the U.S.

Once the bank receives your deposit, your card will be mailed to you. Delivery typically takes 7 to 10 business days. You can start using the card as soon as it arrives.

What happens after your card arrives

When you receive your Milestone card, set up it by calling the number on the back or logging into your online account. Set up online account access so you can check your balance, make payments, and view your statement.

Use the card for small, regular purchases — groceries, gas, a subscription service — and pay the full balance by the due date each month. This pattern of on-time payments is what the credit bureaus see, and it's what rebuilds your credit score over time.

Your payment history is reported to Equifax, Experian, and TransUnion every month. After 6 to 18 months of on-time payments, you can request to convert your secured card to an unsecured card. When that happens, your deposit is returned to you, and you keep the card with a higher credit limit and no deposit requirement.

Costs and fees to know

The Milestone Credit Card charges an annual fee. The exact amount changes periodically, so check the current terms on the Milestone Bank website or in the disclosure documents you receive after approval.

There is no grace period on purchases, which means interest starts accruing when ready on any balance you carry. The interest rate (APR) varies based on your creditworthiness and changes over time. If you carry a $500 balance at 24% APR, you pay roughly $10 per month in interest alone.

There are no late fees, over-limit fees, or foreign transaction fees on this card. If you miss a payment, the bank will not charge you a penalty fee, but the missed payment will be reported to the credit bureaus and will damage your credit score.

How this card compares to other secured cards

Other banks offer secured cards with similar terms: Discover, Capital One, and OpenBank all have secured card products. The main differences are the annual fee amount, the interest rate, and the minimum deposit.

Milestone's annual fee is typically in the middle range compared to competitors. Its interest rate is higher than some cards but lower than others; the rate you receive depends on your credit profile at the time you open the account.

If you have been denied for a Milestone card or want to compare terms, research other secured cards using the same criteria: annual fee, APR, minimum deposit, and how quickly you can convert to an unsecured card. No single card is right for everyone; the best choice depends on your deposit amount, how long you plan to keep the card, and whether you can pay your balance in full each month.

Frequently Asked Questions

Can I use the Milestone card if I have bad credit or no credit history?

Yes. The card is designed for both situations. The deposit secures the account, so your credit score does not determine whether you are approved. The bank will pull your credit report, but the deposit is what matters.

What happens to my deposit if I miss a payment?

Your deposit is held separately and is not touched if you miss a payment. However, a missed payment will be reported to the credit bureaus and will damage your credit score. If you stop paying altogether, the bank may eventually use your deposit to cover the debt, but that is a last resort after multiple missed payments.

How long does it take to convert to an unsecured card?

Most cardholders can request conversion after 6 to 18 months of on-time payments. Milestone Bank reviews your account history and decides whether to convert. There is no may provide of conversion, but consistent on-time payments make it likely.

Can I increase my credit limit without adding more money?

After you have held the card for a period of time and made on-time payments, you may be able to request a credit limit increase without adding to your deposit. Contact Milestone Bank to ask about this option; the bank will review your account and decide.

Is the Milestone card accepted everywhere?

Yes. The Milestone card is a Visa card, so it is accepted anywhere Visa is accepted — online, in stores, and internationally. You can use it like any other credit card.