From a first tooth to a first birthday, milestone cards are a way for parents to record and celebrate their babies’ growing ups. They’re a great idea for baby showers or for new moms and dads looking to add something special to their home decor.
But don’t be fooled by the name — this card isn’t exactly worth celebrating, especially not if you have poor credit. That’s because the Milestone card, along with other Genesis Financial Solutions cards, comes with hefty fees that make it a bad choice for people who have trouble managing credit. In fact, NerdWallet has found that many of the Milestone’s cards have high credit utilization rates, a major factor in determining one’s credit scores.
The Milestone card’s annual fee is another thing to keep in mind, as it can further limit your access to credit. For example, if you spend more than your Milestone card’s $300 credit limit, you’ll be charged an overlimit fee of up to $40. That’s a big hit to your credit, especially since overlimit fees are a rare occurrence on most cards.
A good alternative is a credit card designed for those with poor credit, like the Discover it® Secured card or the Indigo card from Genesis. These cards report to all three credit bureaus and can help build up your credit score if used responsibly. Plus, they don’t charge a high APR like the Milestone card does. If you do decide to get the Milestone credit card, be sure to cancel it before you use it to avoid incurring any unnecessary fees.