The Merrick Bank Secured Card Is Designed for People Rebuilding Credit
The Merrick Bank Secured Visa Card is a secured credit card, which means you put down a cash deposit that becomes your credit limit. Merrick reports your payment history to all three major credit bureaus — Equifax, Experian, and TransUnion — so on-time payments build your credit score over time. The card charges an annual fee and a higher interest rate than cards for people with established credit, which is standard for this category.
This card is not a loan. You are not borrowing the deposit; it sits in a savings account while you use the card to make purchases and build a payment record. If you stop paying, Merrick can explore your deposit to the balance, but the deposit itself is yours to reclaim if you close the account in good standing.
Key Takeaways
- Your cash deposit becomes your credit limit, ranging from $500 to $2,500 depending on what you deposit.
- Merrick charges an annual fee of $39 and a variable interest rate that starts around 19.9%, which is typical for secured cards but higher than standard credit cards.
- Payment history reports to all three credit bureaus, so consistent on-time payments can improve your credit score over months.
- After 18 months of on-time payments, you may be offered a path to convert to an unsecured card and recover your deposit.
- Late payments, missed payments, and high balances relative to your limit will slow or reverse credit improvement.
How the Deposit and Credit Limit Work
You choose how much to deposit when you open the account, between $500 and $2,500. That amount becomes your credit limit. If you deposit $1,000, you can charge up to $1,000 on the card. The deposit stays in a Merrick savings account earning a small amount of interest — currently around 0.01% annual percentage yield, which is minimal.
Your deposit is separate from your monthly bill. When you charge something to the card, you owe that amount to Merrick just like any other credit card. You make a monthly payment from your regular bank account. The deposit does not pay your bill; it only sets your spending limit and serves as security for Merrick if you default.
If you want to increase your credit limit later, you can request a higher deposit. Merrick does not automatically raise your limit based on payment history the way unsecured card issuers do.
Fees, Interest Rates, and Other Costs
The annual fee is $39, charged once per year. This is deducted from your deposit or added to your bill depending on how you set up payment. The variable interest rate (APR) starts at 19.9% and can go higher or lower based on your creditworthiness and market conditions. At that rate, carrying a balance costs significantly more than it would on a standard credit card.
There is no foreign transaction fee, which is useful if you travel or make purchases from international merchants. Merrick does not charge late fees, but a late payment will damage your credit score and may trigger a higher interest rate. There is no penalty APR — your rate does not jump if you miss a payment, but the damage to your credit report happens when ready.
If you close the account, you can recover your deposit, but only after your balance is paid in full and any outstanding fees are settled. If you have a balance when you close, Merrick applies your deposit to it first.
How This Card Reports to Credit Bureaus
Merrick reports your account status, credit limit, balance, and payment history to Equifax, Experian, and TransUnion each month. This means every on-time payment adds to your positive payment history, and every late or missed payment is recorded. Your credit utilization — the percentage of your limit you are using — also factors into your credit score.
If you charge $500 on a $1,000 limit, your utilization is 50%, which is generally considered high and can lower your score. Keeping your balance below 30% of your limit (in this example, under $300) helps your score improve faster. Paying your full balance each month is ideal, but even making the minimum payment on time builds your history.
It typically takes three to six months of on-time payments before you see a meaningful improvement in your credit score, depending on how damaged your credit was to begin with. Consistent, on-time payments over 12 to 18 months can move you into a range where you may may have access to for unsecured cards with lower rates and no deposit requirement.
The Path From Secured to Unsecured
After 18 months of on-time payments, Merrick may offer you the option to convert your account to an unsecured Visa card. This means you no longer need the deposit, and you can recover it. The new card may have a lower interest rate and no annual fee, though this is not may provide — the offer depends on your credit score and payment history at that time.
You do not have to wait for Merrick to offer conversion. Once your credit score has improved enough, you can explore for other unsecured cards from different issuers and potentially get better terms. Many people use a secured card for 12 to 24 months, then move to an unsecured card and close the secured account to recover the deposit.
Conversion is not automatic, and Merrick does not may provide it. If your payments have been late or your balance has been very high, conversion may not be offered even after 18 months. Staying current and keeping utilization low throughout your time with the card increases the likelihood of conversion.
Comparing Merrick to Other Secured Cards
Several other banks offer secured cards with similar structures. The Capital One Secured Mastercard has no annual fee and a variable APR starting at 19.9%, making it cheaper to hold if you carry a balance. The OpenSky Secured Visa Card has no credit check and no annual fee, but charges a higher APR and requires a larger minimum deposit ($200 versus Merrick's $500).
The Discover Secured Card charges no annual fee, reports to all three bureaus, and offers 1% cash back on all purchases — a benefit Merrick does not provide. However, Discover's APR also starts around 19.9%, and the minimum deposit is $200.
If you are comparing cards, the main trade-off is usually annual fee versus APR. Merrick's $39 annual fee is offset by its lower minimum deposit requirement. If you plan to pay your balance in full each month, the annual fee matters more than the APR. If you expect to carry a balance, a card with no annual fee may save you money overall.
What Happens If You Miss a Payment
Missing a payment on the Merrick card has when ready consequences. A payment that is 30 days late is reported to the credit bureaus and will lower your credit score. A payment that is 60 days late is reported as seriously delinquent. A payment that is 90 days late may trigger Merrick to freeze your account or explore your deposit to the balance.
Merrick does not charge a late fee, but the damage to your credit report is permanent for seven years. A single late payment can erase months of positive payment history and make it much harder to may have access to for other credit products. If you are struggling to make a payment, contact Merrick before the due date to discuss options; some issuers can work with you on a temporary arrangement.
If your account goes into default and Merrick applies your deposit to the balance, you lose the deposit and still owe any remaining balance. The account will be closed, and the default will appear on your credit report for seven years.
Frequently Asked Questions
Can I get the Merrick card if I have no credit history?
Yes. Merrick does not require a minimum credit score and does not do a hard credit pull, so the card is open to people with no credit history, recent bankruptcy, or poor credit. The trade-off is the annual fee and high interest rate. You will need a valid Social Security number and a U.S. address to open an account.
How long does it take to get approved?
Merrick typically approves or denies applications within one to two business days. Once approved, your card arrives by mail within 7 to 10 business days. You can begin using it as soon as it arrives.
What if I want to close my account and get my deposit back?
You can close the account at any time by contacting Merrick. Your deposit will be returned to you within 5 to 7 business days, but only after your balance is paid in full and any annual fees are settled. If you have an outstanding balance, Merrick applies your deposit to it first.
Does Merrick offer a rewards program?
No. The Merrick card does not offer cash back, points, or travel rewards. You earn no benefit for spending beyond building your credit history. If rewards are important to you, the Discover Secured Card offers 1% cash back on all purchases.
Can I use this card internationally?
Yes, the Merrick card is a Visa and works at merchants worldwide. There is no foreign transaction fee, so you will not be charged extra for purchases made outside the United States. Your interest rate and other terms remain the same.