UPDATE: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace.
Merrick Bank is a financial institution, lender and one of the top 20 Mastercard issuers in the United States. Despite not having the huge name recognition of other American banks, Merrick counts over 2.4 million customers as its cardholders.
Merrick may fly under the radar because they serve a very specific niche of consumer — namely, someone who is trying to improve their bad credit or build credit for the first time. If that describes you, Merrick Bank may count you as a potential customer for their line of cards. But many competing banks offer credit cards that fulfill that same need. How does Merrick Bank stack up?
Who They Serve
Merrick Bank’s focus is consumers who have suboptimal or nonexistent credit. Their credit cards are designed to be basic solutions for consumers grappling with their credit.
Credit requirements, therefore, may be a bit on the lax side. The approval process is quick, and applicants can easily check online for prequalification without damaging their credit score. Some Merrick cards require you receive an invitation for you to access the card.
It is still possible for your application to be rejected, so don’t assume you’re a shoo-in.
Features for All Cardholders
Features vary between cards, but some apply to all Merrick Bank cardholders.
Cardholders can use Merrick Bank cards to make purchases and access cash at ATMs. The first year’s annual fees are applied to the balance of the card, so the fee can cut into your available credit limit. And Merrick Bank reports card activity to all three major credit bureaus, which is great if you’re trying to build or rebuild your credit — as long as you make timely payments and don’t run up significant balances.
Cardholders get free online and mobile account access. They also have a $0 fraud liability for unauthorized charges.
Merrick Bank’s Card Options
Merrick Bank offers a few different card options to customers:
Merrick Bank Double Your Line Mastercard – this card is not currently available.
The Merrick Bank Double Your Line Mastercard comes with one major hook for improving your credit: If you make at least your minimum payment on time each month for the first seven months your account is open, they’ll automatically double your credit limit.
One drawback: Merrick Bank is not transparent on the annual percentage rate (APR) or annual fee associated with this card. You can see if you are pre-qualified for the card in less than 60 seconds without harming your credit score, at which point APR information you qualify for will be shared with you.
The good news is, if you find the APR to be reasonable (keep in mind that anything over 24% is very high) Merrick’s automatic doubling of your credit limit is very rare. Some card issuers may increase your limit by request, but few make it an automatic feature. By doubling the limit, Merrick Bank is giving you the opportunity to maintain a healthier credit utilization ratio, which is a major factor in calculating your credit score (most financial guidance in our experience recommends keeping that ratio below 30%, though 10% is even better). In other words, doubling your credit limit won’t help your credit score if you double your balance as well.
Merrick Bank will not impose a penalty rate on this card in the event of a late payment.
Merrick Bank Secured Credit Card
- Choose your own credit line based on how much money you want to put down as a security deposit.
- Initial deposits can be from $200 to $3,000. You can increase your credit line at any time by adding additional money to your security deposit, up to $3,000.
- After 9 months, we review your account for a credit line increase. No additional deposit required!
- Secured Credit Cards are great for people looking to build or rebuild credit and are available to people with all kinds of credit backgrounds.
- Unlike a debit card or a pre-paid card, it helps build your credit history. We report your payment history to all three major credit-reporting agencies.
- Get your FICO® Credit Score for free each month.
- Fraud coverage if your card is lost or stolen. Access your account 24 hours a day, 7 days a week. Get help staying on track with available Auto Pay and account alerts.
- Card issued by Merrick Bank, Member FDIC.
Secured credit cards require a security deposit, which sets a line of credit equal to your deposit. Just like any other credit card, you make monthly payments and your card activity is reported to the credit bureaus. In this way, secured credit cards reduce the risk to the card provider and can help you build or improve upon your credit.
For their secured card, Merrick Bank requires an initial security deposit of $200 – $3,000. The requirement for approval is pretty low for the secured card. As long as you can provide a security deposit, have no pending bankruptcies or outstanding tax obligations and meet a few other minimum qualifications, you can access this card.
The card has a purchase APR of 22.95% Variable. There’s an annual fee of $36 for first year. Billed $3 per month thereafter.
The Verdict
Merrick Bank cards appear to be simple, no-frills cards designed for consumers with poor credit or nonexistent credit. Their biggest “wow” factor is the automatically doubled credit line on the Double Your Own Line card.
That said, the fact that they don’t publicly list APR or annual fees for many of their cards sets off alarm bells. These offers come by the mail only – so if you’ve received an offer, you’ll be better poised to judge the cost of the card. Just remember you’d do best to pay off any balance in full each month. Also, remember that your initial annual fee can eat into your credit limit.
With little public information and no big features, we can only determine that Merrick Bank cards can help you improve or build your credit. But you may be better off hunting down some options that are more upfront, include better features and are overall better deals.
Alternatives
If you need an unsecured or secured card to help you build credit, there are a few great options on the market. Here are two of our favorites.
First Progress Platinum Prestige Mastercard® Secured Credit Card
- Earn 1% Cash Back Rewards with First Progress Prestige!
- Apply now and fund your security deposit over 90 days with the option to make partial payments.
- You Can’t Rebuild credit with a Debit Card. Try First Progress Today! ¹
- Build your credit history across 3 major credit reporting agencies: Equifax, Experian and TransUnion.¹
- All credit types welcome to apply!
- ¹Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.
Why We’re Mentioning It: First Progress requires no credit history and no minimum credit score for approval. You get a full featured credit card that that you can use anywhere Mastercard is accepted. And First Progress reports your timely payments to all three major credit bureaus each month, so you build better credit while you use this card. You can deposit anywhere from $200 to $2,000 for this secured card and the ongoing APR is a low 14.49% Variable APR for Purchases.
Purchase APR: 14.49% Variable APR for Purchases
Annual Fee: $49
At publishing time, the Merrick Bank Double Your Line, Merrick Bank Secured, First Progress Platinum Prestige Mastercard Secured are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for these cards. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
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