What Merrick Bank offers and who it's built for
Merrick Bank is a credit card issuer that specializes in cards for people rebuilding credit or starting from scratch. Their main product is the Merrick Bank Secured Visa Card, which requires a cash deposit that becomes your credit limit. Unlike many secured card issuers, Merrick reports to all three major credit bureaus — Equifax, Experian, and TransUnion — so your payment history can help raise your credit score over time.
The card is designed for people who have been denied for standard credit cards, have no credit history, or are working to recover from past credit problems. It's not a rewards card and doesn't offer cash back or points. The value is in the reporting to credit bureaus and the path to a regular unsecured card later.
Key Takeaways
- Merrick Bank's secured card requires a cash deposit between $500 and $2,500 that serves as your credit limit.
- You can open an account online at Merrick.com in about 10 minutes, and approval decisions usually come within one business day.
- Your deposit is held in a savings account and earns a small amount of interest, but you cannot spend it — it only backs your credit line.
- After 12 to 18 months of on-time payments, you may be offered a path to an unsecured card, at which point your deposit is returned.
- The annual fee is $29 to $39 depending on your credit limit tier, and there is no grace period on purchases — interest accrues when ready.
What you need before you start
To open a Merrick Bank account online, you'll need a valid Social Security number, a government-issued ID, and a current mailing address. You'll also need a bank account to fund your deposit — Merrick accepts transfers from most U.S. checking and savings accounts.
Have your ID and Social Security number ready when you begin. The process asks for basic personal information, employment details, and your annual income. You don't need to have a job to open the account, but you do need to provide some income figure — this can include unemployment benefits, disability payments, or other regular income sources.
Step-by-step: Opening your account at Merrick.com
Start at Merrick.com and click on the Secured Visa Card option. You'll be taken to an process form that asks for your name, date of birth, address, Social Security number, and contact information. Fill in each field carefully — errors can slow down approval.
Next, you'll choose your deposit amount. Merrick offers tiers: $500, $750, $1,000, $1,500, $2,000, or $2,500. Your deposit becomes your credit limit, so a $500 deposit gives you a $500 limit. The annual fee varies by tier: lower deposits have lower fees, higher deposits have higher fees. Review the fee schedule before you choose.
After you submit the process, Merrick will perform a soft credit pull (which does not lower your credit score) and a background check. Most decisions come within one business day. If approved, you'll receive an email with instructions to fund your deposit. You'll link your bank account and transfer the money electronically — this usually takes one to three business days to clear.
Once your deposit clears, your card is activated and mailed to you. Delivery typically takes five to seven business days. You can begin using the card as soon as it arrives.
How your deposit works and what happens to it
Your cash deposit is held in a savings account in your name at a partner bank. It earns a small amount of interest — the rate varies but is typically less than 1 percent annually. You cannot withdraw this money while your account is open. It exists solely to find your credit line.
If you close the account or default on payments, Merrick may use your deposit to cover unpaid balances. If you keep the account in good standing, your deposit remains untouched and is returned to you when you close the account or when Merrick converts you to an unsecured card.
The deposit is separate from your annual fee. You pay the annual fee out of pocket each year, usually charged to your card in the first month.
Building credit and moving to an unsecured card
The goal of a secured card is to demonstrate responsible credit use. Merrick reports your payment history to all three credit bureaus each month. Making on-time payments, keeping your balance low, and avoiding missed payments will gradually improve your credit score.
After 12 to 18 months of on-time payments, Merrick may offer you the chance to convert to an unsecured Visa card. This is not automatic — Merrick reviews your account history and credit score. When you convert, your deposit is returned to your bank account, and you keep the card with a higher credit limit (often $1,000 or more).
Some cardholders never receive a conversion offer. If that happens, you can close the secured card and open a different card elsewhere, or continue using the secured card indefinitely. Closing the account does not hurt your credit score, but it does stop the positive reporting that helps your score rise.
Fees, interest rates, and costs to know
The annual fee ranges from $29 to $39 depending on your deposit tier. There is no grace period on purchases, meaning interest begins accruing when ready on any balance you carry. The APR (annual percentage rate) varies but is typically between 19 and 24 percent, depending on your creditworthiness at the time of approval.
There are no foreign transaction fees, and Merrick does not charge late fees or over-limit fees. However, if you miss a payment, Merrick reports it to the credit bureaus, which will lower your score. Late payments also trigger interest charges on the unpaid amount.
To minimize costs, pay your full balance each month. This avoids interest charges and demonstrates responsible credit use to the bureaus.
Alternatives if Merrick isn't the right fit
Other secured card issuers include Capital One, Discover, and U.S. Bank. Each has different deposit minimums, fee structures, and credit bureau reporting practices. If Merrick's fees or deposit requirements don't work for your situation, comparing other secured cards may reveal a better option.
If you have some credit history but a low score, you might also explore unsecured cards designed for fair credit — these don't require a deposit but typically have higher fees and interest rates. If you have no credit history at all, a secured card is usually the most straightforward path.
Frequently Asked Questions
How long does approval take at Merrick?
Most decisions come within one business day of submitting your process. Once approved, you'll receive an email with instructions to fund your deposit. The deposit transfer itself takes one to three business days to clear, and your card ships after that.
Can I use my deposit as a credit line?
No. Your deposit is held separately and secures your credit line, but you cannot access it. Your credit limit is equal to your deposit amount, but you draw from that limit when you use the card, not from the deposit itself.
What if I'm denied?
Merrick will send you a letter explaining the reason. Common reasons include a very recent bankruptcy, active fraud alerts, or a history of defaults. You can reapply after addressing the issue, or explore other secured card issuers with different approval criteria.
Does explore hurt my credit score?
Merrick performs a soft credit pull during the initial review, which does not lower your score. If you're approved and open the account, a hard inquiry may occur, which can lower your score by a few points temporarily.
Can I increase my credit limit later?
Yes, but only by increasing your deposit. You can request a higher deposit amount, and Merrick will adjust your limit accordingly. This requires sending additional funds to your deposit account.