When your credit is still growing, or you’re coming back from past setbacks, there are two common ways to get a card: a secured card, where you put down a deposit first, or a card like the Milestone Mastercard, which gives you a credit line without a deposit. Both can help build credit. They just ask for different things up front. Here’s how to tell which one fits you.
A quick note before the details. CreditsBoosters is an independent content site, not a bank. Approval, credit line, fees and terms are decided by the bank, and nothing on this page is a promise of approval or of any credit limit.
Two Ways to Build Credit With a Card
Building credit with a card works the same way whichever card you pick. Each month the card company shares your account details with the companies that keep credit records: whether you paid on time and how much of your limit you used. A steady record of on-time payments and small balances is what helps your score grow.
The difference between the two options is how the card company handles the risk of lending to someone with a short or bumpy record. A secured card asks you to cover that risk with your own money. The Milestone covers it with fees instead. That single difference shapes everything else.
How a Secured Card Works
With a secured card, you pay a deposit when you open the account, and that deposit usually becomes your credit limit. It works like a regular card at the store, and your payments are reported the same way. The deposit stays with the bank while the account is open and is usually returned when you close it in good standing or when the bank moves you to a regular card.
The upside is that many secured cards have low or no yearly fees, so the main cost is the money you set aside. The downside is that you need that money in the first place, and while it’s tied up, you can’t use it for anything else.
How the Milestone Works Without a Deposit
The Milestone Mastercard gives you a credit line without a deposit. You can check online whether you’re likely to qualify without affecting your credit score, and if you’re approved, the card arrives in the mail ready to use wherever Mastercard is accepted. Your payments are reported to the major credit reporting companies every month.
In exchange, the Milestone charges an annual fee, and the amount depends on your offer. The credit line is usually modest. The card doesn’t earn rewards. It’s a tool for building credit, not for earning, and it’s honest to treat it that way.
See the full Milestone review: what it costs, who it fits and how to apply.
The full review explains the Milestone’s costs and who it suits best, so you can compare it with a secured card using your own numbers.
Comparing What Each One Really Costs
To compare fairly, look at what each card costs you in a year, not just at the first payment. For a secured card, add the yearly fee, if any, and remember that the deposit is money you’ll usually get back. For the Milestone, add the annual fee and any other fees in your offer, which you won’t get back.
Then consider interest. Both kinds of cards usually have high interest rates, so the cheapest way to use either one is to pay the full bill every month. If you plan to do that, the yearly fees are the real cost. If you expect to leave a balance, interest will cost more than any fee on either card.
Which One Fits Your Situation
A secured card is often the better fit if you can set aside a deposit without straining your budget, and you want the lowest yearly cost. It’s also a common choice for people starting out with no credit at all, since the deposit lowers the bar for approval.
The Milestone can make more sense if you can’t spare a deposit right now, or you’d rather keep your savings available for emergencies, and you’re comfortable paying an annual fee for that. It’s built for people with past setbacks who want a regular credit line. In either case, choose the card you can keep in good standing for the long run.
What Both Cards Need From You
Whatever you choose, the habits are the same. Use the card for a few small, planned purchases. Pay the full bill on time every month, ideally with automatic payment. Keep the balance small compared with your limit, especially around the day your statement is created. And check your credit reports for free at annualcreditreport.com to see your progress.
After a stretch of on-time payments, your score can grow into the range where cards with lower costs and rewards become an option. That’s the real goal of either card: a stronger record that opens better choices later.
SEE HOW TO APPLYMilestone or Secured Card: Questions
Do I get my deposit back on a secured card?
Usually yes, when you close the account in good standing or the card company moves you to a regular card, but check the terms.
Does the Milestone ask for any deposit?
No, the Milestone gives you a credit line without asking you to put money down first.
Which one builds credit faster?
Neither is faster by design; both build credit through on-time payments and low balances reported every month.
Can I have both cards at the same time?
You can, but opening two new accounts close together can weigh on your score, so most people start with one.
Does either card earn rewards?
The Milestone doesn’t earn rewards, and most secured cards don’t either, though a few pay a little cash back.
What if I’m turned down for one?
Wait a while before applying again, keep paying other bills on time and look at cards made for starting out.
Pick the One You Can Keep Up With
A secured card asks for a deposit you usually get back. The Milestone Mastercard skips the deposit and charges an annual fee instead. Both build credit the same way, through on-time payments and small balances. If you can spare the deposit, a secured card is often cheaper. If you’d rather keep your cash free, the Milestone is a real credit line to start with. Pick the one you can keep up with month after month.
CreditsBoosters is an independent content site. We are not a bank or a lender, we don’t take applications and we don’t charge for the information on this page. The Milestone Mastercard is issued by The Bank of Missouri. Approval, credit line, fees and terms are set by the bank and are not guaranteed. Card details were checked against the official Milestone pages in October 2026; always confirm current terms before you apply and in your card agreement.