Your Milestone Card Limit Starts Low and Grows With On-Time Payments
Milestone Credit Card is designed for people rebuilding credit, so your starting limit is typically between $200 and $1,000. The exact amount depends on the deposit you put down — Milestone is a secured card, meaning you fund a cash deposit that becomes your credit limit. If you deposit $500, your limit is $500. That deposit stays in a separate account and is not touched unless you default on the card.
Your limit does not automatically increase just because time passes. Milestone reviews your account after you have made on-time payments for several months, usually around the six-month mark. If you have paid your bill in full and on time every month, they may increase your limit without asking you to add more money to your deposit. Some cardholders see increases of $100 to $500, though the company does not publish a standard formula.
The card reports to all three credit bureaus — Equifax, Experian, and TransUnion — so every on-time payment builds your credit history. That history is what matters most when you eventually move to an unsecured card with a higher limit.
Key Takeaways
- Your Milestone limit equals your cash deposit, so a $500 deposit gives you a $500 limit.
- Milestone may increase your limit after six months of on-time payments, without requiring you to deposit more money.
- The card reports to all three credit bureaus, so consistent payments directly improve your credit score.
- Limit increases are not may provide and depend on your payment history with Milestone specifically.
- Moving to an unsecured card with a higher limit typically requires six to twelve months of on-time payments on the Milestone card.
How the Deposit Works and What Happens to It
When you open a Milestone account, you choose how much to deposit. The minimum is usually $200, and the maximum is $2,500. That money goes into a savings account held by the card issuer, Milestone Bank. You cannot touch it while the account is open, and it does not earn interest.
Your credit limit equals your deposit amount. If you deposit $800, you can charge up to $800 on the card. The deposit protects the bank if you stop paying — they can use it to cover your debt. This is why secured cards are easier to get approved for than unsecured cards, even with poor credit.
If you close the account in good standing — meaning you have paid your balance and have no outstanding debt — Milestone returns your deposit to you. If you default on the card, the bank may keep part or all of the deposit to cover what you owe. If you upgrade to an unsecured Milestone card, your deposit is returned and your new limit is set separately.
When and How Milestone Increases Your Limit
Milestone does not publish exact timing or criteria for limit increases, but cardholders typically report increases after six months of perfect payment history. "Perfect" means paying at least the minimum due by the due date, every single month. A single late payment can delay or prevent an increase.
When Milestone decides to increase your limit, they notify you by mail or through your online account. You do not have to request it. The increase usually comes without requiring you to add more money to your deposit, which is one of the main advantages of the Milestone card over other secured options.
Some cardholders see multiple increases over time. The first increase might be $100 to $200. Later increases, if you continue to pay on time, may be larger. However, Milestone will not increase your limit beyond your deposit amount unless you add more money to your deposit or the card converts to unsecured status.
Converting to an Unsecured Card and Getting a Higher Limit
After twelve to eighteen months of on-time payments, Milestone may offer to convert your secured card to an unsecured card. When this happens, your deposit is returned to you, and your credit limit is set by Milestone based on your credit history and income. Unsecured limits are typically higher than secured limits because the bank no longer has your deposit as protection.
Conversion is not automatic. Milestone reviews your account periodically, but you can also contact them to ask about conversion if you believe you meet the criteria. Having a higher credit score at the time of review improves your chances of conversion and a higher limit.
If Milestone does not offer conversion, you can still use the secured card indefinitely. Some people keep secured cards open even after their credit improves, because the card reports positive payment history and helps maintain a longer average account age — both factors that boost credit scores.
Comparing Milestone to Other Secured Cards
Milestone is one of several secured cards available, and limits work differently depending on the card. Some secured cards have annual fees; Milestone charges $95 per year. Some cards offer rewards on purchases; Milestone does not. Some cards have higher minimum deposits; Milestone starts at $200.
The main reason to choose Milestone over competitors is the potential for limit increases without adding more deposit money. Other secured cards require you to deposit additional funds if you want a higher limit. Milestone's approach is gentler on your cash flow if you are rebuilding credit on a tight budget.
If you are comparing secured cards, look at the annual fee, the minimum deposit, whether the card reports to all three bureaus, and the issuer's track record for limit increases. Milestone scores well on limit increases and reporting, but the $95 annual fee is higher than some competitors.
What Happens If You Miss a Payment
A single late payment does not automatically close your account or trigger a limit decrease, but it will be reported to the credit bureaus and will damage your credit score. It also resets your clock for limit increases — if you were six months into on-time payments and miss one, you may need to start over.
If you are thirty days late, Milestone will charge a late fee (usually $25 to $35) and report the late payment to the bureaus. If you are sixty days late, the late fee increases and the damage to your credit score compounds. If you are ninety days late, Milestone may freeze your account or close it.
If your account is closed due to non-payment, your deposit is used to cover what you owe. Any remaining deposit is returned to you, but the closed account will appear on your credit report and will hurt your score for years. If you cannot pay your balance, contact Milestone when ready to discuss a payment plan or hardship options.
Using Your Milestone Limit Wisely to Build Credit
Your limit is not a target to spend up to. To build credit most effectively, use your card for small purchases — $20 to $50 per month — and pay the full balance by the due date every month. This shows lenders that you can manage credit responsibly without carrying a balance.
Carrying a balance and paying interest does not build credit faster. It only costs you money. Credit bureaus care about whether you pay on time, not whether you pay interest. A $30 purchase paid in full is just as valuable to your credit score as a $300 purchase paid in full.
Using your card for a few small purchases each month also keeps the account active. Inactive accounts sometimes get closed by the issuer, which can hurt your credit score. Aim for at least one purchase every few months to keep the account in use.
Frequently Asked Questions
Can I increase my limit without depositing more money?
Yes. Milestone may increase your limit after six months of on-time payments without requiring additional deposit. However, increases are not may provide and depend on your payment history. You cannot request an increase yourself — Milestone initiates it.
What is the highest limit I can get with Milestone?
With a secured Milestone card, your limit cannot exceed your deposit amount (up to $2,500). If your card converts to unsecured, Milestone sets a new limit based on your credit and income, which may be higher. Unsecured limits vary by cardholder.
Do I get my deposit back if I close the account?
Yes, if you close the account in good standing and have paid your balance in full. If you default or carry a balance when you close, Milestone may keep part of the deposit. If your card converts to unsecured, your deposit is returned automatically.
How long does it take to convert from secured to unsecured?
Conversion typically happens after twelve to eighteen months of on-time payments, but timing varies. Milestone does not publish a set timeline. You can contact them to ask about conversion if you believe you meet the criteria.
Will a late payment lower my limit?
A late payment will not automatically lower your limit, but it will be reported to credit bureaus and will delay or prevent future limit increases. Repeated late payments may result in account closure. One late payment can reset your progress toward the next increase.