Merrick Bank’s credit card is a card for people with poor to fair credit. When you have bad credit, any lender offering you a credit card will seem like a savior. Merrick Bank is one of those lenders that will provide you with you a credit card even if you have bad credit.
However, before you get excited about getting a credit card offer from Merrick Bank, you need to read this Merrick Bank credit card review. This review will help you understand what you’re getting, and if it is right for you.
There is always a catch with companies that go after people with poor credit. Educate yourself before you dive.
What Is Merrick Bank
Founded in 1997, Merrick Bank is an FDIC insured financial services institution with headquarters in Utah. The company has over three million cardholders and has extended over $5.3 billion in credit to its customers.
Products Offered By Merrick Bank
Merrick Bank primarily offers the following products:
- Credit Cards
- Personal Loans
- RV, Boat, and Horse trailer financing
- Merchant Services
As the title suggests, this Merrick Bank credit card review will focus only on the credit cards. We will discuss the personal loans, RV financing, and Merchant services in another review.
Merrick Bank Credit Card
The bank provides two different credit card options — the Secured VISA credit card and the Platinum VISA credit card.
Merrick Bank Secured VISA Credit Card
The Secured VISA credit card from Merrick Bank is suitable for people wanting to build or rebuild their credit.
While getting a credit card offer is flattering, especially if you have bad credit. However, it would be best if you scrutinized your offer from Merrick Bank. That’s because Merrick Bank credit card comes with fees that are higher than those of other secured credit cards.
For example, Citi Secured Cards charges $0 in annual fees. Discover It Secured credit card also charges $0 in Annual fees. Merrick Bank, on the other hand, has a $39 annual fee. This amount is exorbitant primarily because Merrick Bank does not provide additional value for the amount it charges.
How To Get A Merrick Bank Secured Credit Card
Merrick Bank Secured credit card requires a security deposit of between $200 to $3000. Depending on how much credit you’re applying for, you will need to deposit an equivalent amount with Merrick Bank. For example, if you want a secured credit card with a $500 limit, you will have to deposit $500 with the bank as collateral.
In addition to your security deposit, you will also have to meet the below conditions:
- You are at least 18 years old
- have a valid Social Security Number
- have a verifiable U.S. home address
- meet the government-mandated Income Assessment and Identity Verification
- do not have a pending bankruptcy filing that hasn’t been resolved by the courts
- do not have any outstanding tax obligations
Once you meet all the above requirements, you can apply for a Merrick Bank credit card regardless of your credit score.
Features Of the Merrick Bank Secured Credit Card
- Annual Percentage Rate: Merrick Bank secured credit has an APR of 19.20% on purchases. However, for cash advances, the APR is 24.20%. These rates are relatively low compared to other credit cards in a similar category. For example, Citi Secured credit card charges 24.24% APR on purchases and 26.99% APR on cash advances.
- Transaction Fees: Merrick Bank Secured credit card charges $10 or 4% (whichever is greater) in transaction fees on cash advances. They also charge a 2% fee on each foreign transaction. These fees are lower than the industry standard, so that’s a good thing.
- Penalty Fees: Merrick Bank charges a $39 penalty for late and returned payments; which is comparable to those charged by other credit card companies.
- Set-Up and Maintenance Fees: This is an area to pay keen attention to. Merrick Bank assesses a set-up and maintenance fee even before you start using your credit card. This practice reduces the amount of initial credit you get. For example, if you’re approved for a $300 credit card, you will get $264. That’s because $36 in annual set-up and maintenance fees will be taken out even before you get the credit card. The bank then bills you $3 per month after that.
- Perks and benefits of having a Merrick Bank credit card: Merrick Bank credit card is a VISA card. That means it comes with all the perks and benefits that VISA offers. Some of the perks and benefits include zero liability fraud protection and acceptance anywhere they accept VISA cards. Merrick Bank Secured credit card reports your card activities to the three major credit bureau, which is essential if you’re trying to build credit.
- Online And Mobile Access: Merrick Bank has an intuitive mobile app for customers to check their account balance, set up alerts, and make payments.
- Free Credit Score Monitoring: Free credit monitoring is also a useful perk that comes with your Merrick Bank credit card. Credit monitoring is especially helpful for people trying to build their credit.
Credit Limit Increases: After the first year, Merrick Bank evaluates your account activity and determines if you need a credit limit increase.
Merrick Bank Platinum VISA Credit Card
The Platinum VISA credit card from Merrick Bank is suitable for people with good credit scores.
Unlike the secured credit card Merrick Bank provides, the Platinum VISA credit card does not require a collateral or security deposit.
Bottom Line
Merrick Bank credit cards are suitable for people with poor to fair credit. There are some advantages to getting a Merrick Bank credit card, like the lower APY on purchase and cash advances. However, Merrick charges a $36 annual set-up fee which can neutralize any potential gain from the low APR.
If paying a $36 annual fee isn’t a turn-off, then a Merrick Bank credit card may be the right card for you.
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