If you are looking for a credit card that can help you improve your credit score and offer you flexible payment options, you may have heard of the Milestone Credit Card. This card is issued by The Bank of Missouri in partnership with Genesis FS Card Services and is designed for people who have less than perfect credit.
But what is the annual fee for the Milestone Credit Card, and how does it affect your card usage and your credit score? In this blog post, we will explain the annual fee for the Milestone Credit Card and what to know about it.
What is the annual fee for the Milestone Credit Card?
The annual fee for the Milestone Credit Card is a fee that you have to pay every year to keep your account open and active. The annual fee is charged to your account on the first billing cycle after you receive your card and on the same month every year thereafter. The annual fee is not refundable, even if you close your account or stop using your card.
The annual fee for the Milestone Credit Card varies depending on your creditworthiness and other factors. The annual fee can range from $35 to $99, which means you could pay as low as $2.92 per month or as high as $8.25 per month. The issuer will notify you of your annual fee when you receive your card in the mail. You can also check your annual fee on your online account or by calling the customer service number.
The annual fee for the Milestone Credit Card may seem high compared to other credit cards, but it is reasonable for a card that targets people with bad credit. The annual fee is a way for the issuer to cover the risk of lending money to people who have a history of defaulting or paying late.
The annual fee is also a way for the issuer to offer you some benefits, such as:
- A $300 credit limit, which can help you avoid overspending and accumulating debt that you cannot afford to pay back.
- A $0 fraud liability protection, which means you are not responsible for any unauthorized charges on your account.
- A Mastercard that can be used anywhere Mastercard is accepted, both online and offline.
- A credit building opportunity, as the card reports to all three major credit bureaus (Equifax, Experian, and TransUnion), which can help you improve your credit score over time if you use the card responsibly.
- A flexible payment option, as you can pay your bill online, by phone, by mail, or by using the MoneyGram service.
However, the annual fee for the Milestone Credit Card also has some drawbacks that you should be aware of, such as:
- It reduces your available credit, as the annual fee is charged to your account and counts towards your balance. For example, if you have a $300 credit limit and a $99 annual fee, your available credit will be reduced to $201 after the annual fee is charged.
- It increases your interest and fees, if you carry a balance on your card or miss a payment, as you will have to pay interest and fees on the annual fee as well as on your purchases. For example, if you have a $300 credit limit, a $99 annual fee, and a 24.9% APR, and you only pay the minimum payment of $25 every month, you will end up paying $160 in interest and fees in one year.
- It lowers your credit score, if you have a high credit utilization or a late payment, as the annual fee will affect your credit utilization and your payment history, which are two major factors in your credit score calculation. For example, if you have a $300 credit limit and a $99 annual fee, your credit utilization will be 33%, which is above the recommended 30% threshold. If you also miss a payment or pay late, your payment history will be negatively impacted and your credit score will drop.
Therefore, you should weigh the pros and cons of the annual fee for the Milestone Credit Card before applying and use it wisely if you get approved.
How to avoid or reduce the annual fee for the Milestone Credit Card?
If you find the annual fee for the Milestone Credit Card too high for your budget or your needs, you may wonder if you can avoid or reduce it. The answer is yes, but it is not easy. There are some ways that you can try to avoid or reduce the annual fee for the Milestone Credit Card, such as:
- Negotiate with the issuer. You can try to call the customer service number and ask for a lower annual fee or a waiver of the annual fee. You may have a better chance of getting a favorable response if you have a good credit score, a low credit utilization, a long account history, or a high income. However, there is no guarantee that the issuer will agree to your request, and you may end up with a hard inquiry on your credit report, which will temporarily lower your score by a few points.
- Apply for a different card. You can try to apply for a different credit card that has a lower or no annual fee and that suits your credit profile and your needs. You may have to do some research and comparison to find the best card for you. You may also have to improve your credit score and your financial situation to qualify for a better card. However, you should be careful not to apply for too many cards in a short period of time, as this will look like you are desperate for credit and pose a higher risk to lenders. You should also be aware that closing your Milestone Credit Card account may hurt your credit score, as it will reduce your available credit and your average account age.
- Use the card sparingly. You can try to use the card only for small and necessary purchases and pay your balance in full every month. This way, you can avoid paying interest and fees on the annual fee and your purchases and keep your credit utilization low. You can also use the card to improve your credit score and qualify for a better card in the future. However, you should not stop using the card completely, as this may cause the issuer to close your account due to inactivity and hurt your credit score.
By following these tips, you can try to avoid or reduce the annual fee for the Milestone Credit Card and save some money. However, you should also be realistic and understand that the annual fee is part of the deal when you apply for the Milestone Credit Card and that you may not be able to get rid of it completely.
FAQs
What is an annual fee for a credit card?
An annual fee is a recurring charge that credit card issuers impose for the privilege of holding and using their credit card. It’s typically billed annually and can vary depending on the card issuer and the type of card.
Does the Milestone Credit Card have an annual fee?
Yes, the Milestone Credit Card may have an annual fee associated with it. The specific annual fee amount can vary based on factors such as your creditworthiness and the terms of your card agreement.
How much is the annual fee for the Milestone Credit Card?
The annual fee for the Milestone Credit Card varies depending on individual circumstances. It’s advisable to refer to the terms and conditions provided by Milestone or contact customer service directly to inquire about the current annual fee applicable to your account.
When is the annual fee charged on the Milestone Credit Card?
The annual fee for the Milestone Credit Card is typically charged on your account anniversary date, which is the date when you opened the account or when the annual fee was first assessed. It’s important to be aware of this date to plan for the annual fee payment accordingly.
Is the annual fee on the Milestone Credit Card refundable?
The annual fee for the Milestone Credit Card is generally non-refundable once it has been charged to your account. However, some credit card issuers may offer exceptions or waivers under certain circumstances. It’s recommended to review the terms of your card agreement or contact customer service for clarification.
Conclusion
The annual fee for the Milestone Credit Card is a fee that you have to pay every year to keep your account open and active. The annual fee can range from $35 to $99, depending on your creditworthiness and other factors. The annual fee can have some benefits and drawbacks for your card usage and your credit score. Therefore, you should understand how it works and how to manage it effectively.
You can also try to avoid or reduce the annual fee by negotiating with the issuer, applying for a different card, or using the card sparingly. By following these tips, you can understand the annual fee for the Milestone Credit Card and what to know about it. We hope this article was helpful and informative. If you have any questions or comments, please feel free to leave them below. Thank you for reading and happy saving!