Merrick Bank Secured Credit Card Review of Pros and Cons

Rebuild credit with the Merrick Secured Visa Card

Merrick Bank Secured Credit Card

For people with a lower credit score, the Merrick Bank Secured Credit Card can be a solid way to start rebuilding your credit. You can use it to build up a strong history of on-time payments. But is the Merrick Bank Secured Card right for you? What are the advantages and drawbacks? Does Merrick Bank Secured Card graduate? We’ll answer all of these questions and more below.

Merrick Bank Secured Credit from Merrick Bank

Merrick Bank Secured Credit Card – Pros

1. Application

The Merrick Bank Credit Card Application is very straightforward. You do have to be 18 years old at a minimum and have a valid social security number. They have to be able to verify your address in the United States. Additionally, you’ll pay a security deposit with this card. However, the entire application for the Merrick Bank Secured Credit Card is online. Once you complete it, they’ll let you know within minutes if you get it. If not, they’ll mail you a detailed reason why.

2. Set Your Credit Line

However much you pay for your deposit to open this card will be your new credit line amount. This is nice for people who don’t have a lot of money lying around. The minimum deposit is $200. But, this card has a unique feature. You can add to your initial deposit over time up to $3,000. The more money you add, the more your credit line rises. This looks good on your credit to have higher limits. Compare this Merrick Bank with other secured credit card offers.

3. Free Credit Score

You can’t fix your credit score unless you know what it is and any issues you have with it. With the Merrick Bank Secured card, you’ll have access to your free credit score. This allows you to log in and monitor it whenever you like. It’s great for spotting fraud and seeing how new accounts impact your credit score as a whole. You’ll have access to your credit score for as long as you have the card in good standing.

4. $0 Fraud Liability

If someone gets your card and makes fraudulent purchases, Merrick Bank won’t make you pay them. You do have to report the fraudulent activity to them. They’ll freeze your card to prevent any other purchases. Once they finish their investigation, they’ll wipe out any balances that aren’t yours. Finally, they’ll authorize you a new card that you can set up and use however you like.

5. Auto Rental Insurance

Merrick has a form of auto rental insurance you can use when you travel and need to rent a car in the United States. This can save you both time and money, especially if you travel a lot. This doesn’t cost you anything extra, either. All you have to do is book your car rental with your Merrick Bank Secured card. Everything else will be automatic.

6. Credit Increases

Does Merrick Bank Secured card graduate? The answer is no. After you rebuild your credit score you will need to apply for unsecured line(s) of credit.

7. Reports to All Credit Bureaus

Some credit card companies only report to one or two credit bureaus. Merrick is different. They report to all major credit monitoring bureaus. This means it can help your credit score increase much quicker. However, this also means it’ll drag your score down faster if you miss payments. Double-check all of the credit bureaus and make sure they all have your card information.

8. Available to Low Credit Scores

People with low credit scores usually have a tough time getting credit cards and loans. However, the Merrick Bank Secured credit card comes designed for these lower scores. Since it’s a secured card, you have to pay for your credit line. However, it’s useful for helping you re-establish your credit. Additionally, you can get this card without having a credit history.

Merrick Bank Secured Credit Card – Cons

1. High APR

The lenders see you as a high-risk borrower. They believe that there is a good chance you won’t repay your balance. To offset this risk, they assign a higher APR to the card. Each month you carry a balance on your card, you’ll pay this rate. So the variable APR starts at 22.20% and goes up.

2. Annual Fee

One thing about the Merrick Bank Secured Card is that it has an annual fee. Many secured cards don’t have this feature, but this one does. For the first year, you’ll pay $36 for the annual fee. Every year after, the lender charges $3 per month. While this isn’t a huge amount, it can be an expense you don’t necessarily need. The OpenSky Visa Secured Card is very similar to the Merrick Bank Secured Card.

3. Minimum Security Deposit

It is true that the Merrick Bank Secured credit card has a unique security deposit. However, it does have a minimum. This minimum deposit is $200. If you don’t have it, you can’t open a line of credit with this card. For some people, this could be a struggle to come up with.

4. No Rewards

This is a very basic card with no frills. There’s no rewards program attached to it. This means you won’t get any points you can redeem when you use it. While this isn’t terrible, it’s not convenient. You can use it as a vehicle to learn about controlling your spending and building a solid credit history.

5. Fees

The good news is, there aren’t a lot of fees attached to the Merrick Bank Secured Card. You will pay an annual feel as we mentioned, and this card has a late payment fee of up to $40 for every late payment. The foreign transaction fee is 2% each time you use your card. You’ll pay a variable cash advance fee of 27.20% as well. These fees can really add up to an unpleasant surprise, especially if you travel with it.

Merrick Bank Secured Credit Card from Merrick Bank

Bottom Line on the Merrick Bank Secured Credit Card

The Merrick Bank Secured Credit Card is a straightforward card for helping people build or re-establish their credit. We recommend starting with it and applying for an unsecured card when your credit score increases. This way, you could potentially get a better card with rewards and make it more worthwhile to use it.

Monica Kowollik


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