What the Milestone Card process Requires

Milestone Credit Card is a secured card issued by Milestone Bank, and you can start the process process on their website or by phone. The process itself takes about 10 minutes and asks for standard information: your name, address, Social Security number, employment status, and annual income. You will need to be at least 18 years old and a U.S. citizen or permanent resident with a valid Social Security number.

After you submit your process, Milestone will pull your credit report and make a decision within one business day in most cases. If you are approved, you move to the next step: funding your security deposit. The deposit is what makes this a secured card — it becomes your credit limit, and Milestone holds it in a deposit account while you use the card.

The security deposit ranges from $500 to $2,500, depending on what you request and what Milestone approves. You fund this deposit by bank transfer or debit card, and once the money clears, your card ships within 5 to 7 business days. There is no annual fee, which is unusual for secured cards and worth noting if you are comparing options.

Key Takeaways

  • Milestone's process takes 10 minutes online and requires your Social Security number, income, and employment status.
  • You must fund a security deposit of $500 to $2,500 within a few days of approval, or your account will not set up.
  • The card arrives 5 to 7 business days after your deposit clears, and there is no annual fee to pay.
  • Milestone reports your payment history to all three credit bureaus, so on-time payments build your credit score over time.
  • After 6 to 12 months of on-time payments, you can request a credit limit increase or conversion to an unsecured card.

What Happens After You Are Approved

Once Milestone approves your process, you have a short window to fund your security deposit. Most banks give you 10 days, though you should confirm this in your approval email. If you do not fund the deposit within that timeframe, your account closes and you have to reapply.

Fund the deposit by logging into your Milestone account and selecting the bank transfer or debit card option. The money moves to a separate deposit account that Milestone holds — you cannot touch it while the card is active, but it earns a small amount of interest. Once the deposit clears (usually 1 to 3 business days), your card is activated and ships when ready.

When your physical card arrives, you can start using it right away. Milestone sends you a PIN by mail separately. You can also request a virtual card number to use online before the physical card arrives, which is helpful if you want to start building credit history when ready.

Building Credit and Moving Beyond the Deposit

The whole point of a secured card is to prove you can handle credit responsibly so that later you can move to an unsecured card without a deposit. Milestone reports every payment you make to Equifax, Experian, and TransUnion, so on-time payments show up on your credit report and raise your score over time.

After 6 to 12 months of on-time payments, you can contact Milestone and ask for a credit limit increase or a conversion to an unsecured card. If you request an increase, Milestone may ask for an additional deposit, or it may increase your limit based on your payment history alone. If you request conversion, Milestone returns your security deposit and converts the card to a regular unsecured card with no deposit required.

Neither outcome is may provide — it depends on your payment history and credit score at the time you request it. But Milestone's terms are clearer than some issuers about what "on-time" means: you must make at least the minimum payment by the due date every month, with no late payments.

Fees and Interest Rates

Milestone charges no annual fee, which sets it apart from many other secured cards that charge $25 to $99 per year. However, there are other costs to understand. The purchase APR (the interest rate on purchases) is typically between 18% and 24%, depending on your creditworthiness at the time of approval. This is higher than unsecured cards offer, but standard for secured cards.

There is also a cash advance APR, usually 3 to 5 percentage points higher than the purchase APR, and a cash advance fee of 3% of the amount you withdraw. Late payments trigger a late fee of $25 to $35, and if you go over your credit limit, there is an over-limit fee of $25. These fees are why on-time, in-full payments matter so much — they keep your costs down and your credit score moving up.

Milestone does not charge a foreign transaction fee, so if you travel internationally, you can use the card without a penalty on currency conversion. This is a small advantage if you travel regularly.

Who Should explore for the Milestone Card

The Milestone Card makes sense if you have no credit history or a damaged credit history and need a way to build or rebuild. Because it is secured, approval is much easier than with unsecured cards — Milestone is willing to approve people with low or no credit scores because your deposit protects them if you do not pay.

It is less useful if you already have a fair or good credit score. In that case, you may be able to get an unsecured card with a lower APR and no deposit requirement. You can check your credit score for free through your bank, Credit Karma, or AnnualCreditReport.com before you explore, so you know where you stand.

The Milestone Card is also a reasonable choice if you want a card with no annual fee and do not mind the higher interest rate in exchange. Some people keep the card even after converting it to unsecured, because the no-fee structure is hard to beat.

How to Start the process

Go to Milestone Bank's website and click the link to explore for the Milestone Credit Card. You will be asked to choose whether you want to explore online or by phone. Online is faster — you can complete the whole process in one sitting and get a decision within 24 hours.

Have your Social Security number, current address, and employment information ready before you start. If you are self-employed, have your most recent tax return or profit-and-loss statement available, because Milestone will ask for proof of income. If you are unemployed or a student, you can still explore — Milestone accepts household income or income from a spouse or parent, though you may need to provide documentation.

After you submit, Milestone will send you an email with your decision and next steps. If you are approved, the email will include instructions for funding your security deposit and a link to your account. If you are denied, the email will explain why and tell you how long to wait before reapplying (usually 30 days).

Alternatives to Consider

If Milestone does not work for you, other secured cards exist with different terms. The Capital One Secured Card charges a $25 annual fee but may offer a higher credit limit for the same deposit. The Discover Secured Card charges no annual fee like Milestone but has a lower maximum credit limit ($2,500 versus Milestone's $2,500, so they are the same on that front). The OpenSky Secured Card does not require a Social Security number, which matters if you are a non-citizen building credit for the first time.

Compare the APR, annual fee, credit limit range, and how long each issuer typically takes to convert to unsecured before you decide. Some cards convert faster than others, and if your goal is to move off the secured card quickly, that matters.

Frequently Asked Questions

What credit score do I need to get approved?

Milestone does not publish a minimum credit score, and approval is based mainly on your ability to fund the security deposit. People with no credit history, low scores, or recent negative marks often get approved. Your income and employment status matter more than your score because the deposit is what protects Milestone if you do not pay.

Can I use the card right away, or do I have to wait for the physical card?

You can request a virtual card number as soon as your deposit clears, which usually takes 1 to 3 business days after you fund it. This lets you start using the card online when ready. The physical card arrives 5 to 7 business days later and can be used in stores and ATMs.

What happens to my security deposit when I convert to an unsecured card?

Milestone returns your security deposit to the bank account you used to fund it. The return usually takes 5 to 7 business days. Your credit limit on the new unsecured card is set separately and may be higher or lower than your original deposit amount.

Can I increase my credit limit without adding more money?

After 6 to 12 months of on-time payments, you can ask Milestone for a credit limit increase. They may grant it based on your payment history alone, or they may ask for an additional deposit. There is no way to know until you ask, so contact Milestone's customer service to find out what they will do in your case.

What if I miss a payment?

A missed payment triggers a late fee of $25 to $35 and is reported to the credit bureaus, which damages your credit score. It also resets your progress toward conversion to an unsecured card. If you miss a payment, contact Milestone when ready to bring your account current and ask about hardship options.