What Merrick Bank Cards Do and Who They Suit

Merrick Bank issues secured credit cards — cards that require a cash deposit as collateral. The deposit becomes your credit limit, so a $500 deposit gives you a $500 limit. Merrick does not report to all three credit bureaus equally, does not offer rewards, and charges an annual fee. You should consider Merrick if you have no credit history, a very low credit score, or a long gap since your last credit activity, and you want a straightforward path to rebuild.

Merrick is not the right choice if you already have fair credit (a score around 620 or higher), if you want cash back or points, or if you want to avoid annual fees. Other secured cards and unsecured options exist that may cost less or report more consistently to the bureaus that matter most to lenders.

Key Takeaways

  • Merrick Bank requires a cash deposit equal to your credit limit, with no rewards program and an annual fee of $39 to $99 depending on the card.
  • The card reports to Equifax and TransUnion but not consistently to Experian, which limits how much it helps your credit score at all three bureaus.
  • Merrick does not require a credit check to open an account, making it accessible to people with no credit history or very low scores.
  • After 18 months of on-time payments, you may request a credit limit increase without adding more deposit, or you may graduate to an unsecured card.
  • Merrick charges interest rates between 19.9% and 24.9% APR, which is high but typical for secured cards issued to people rebuilding credit.

How the Merrick Secured Card Works

You deposit money into a savings account held by Merrick Bank. That deposit is frozen — you cannot withdraw it while the card is open. The amount you deposit becomes your credit limit. If you deposit $500, you get a $500 limit. Merrick holds your deposit for the life of the account, even after you graduate to an unsecured card.

You use the card like any other credit card: make purchases, receive a monthly statement, and pay a bill. The deposit sits untouched in the background. If you stop paying your bill, Merrick can explore your deposit to the debt, but they will not do so automatically — they will contact you first. Your monthly payments and account activity are what get reported to the credit bureaus and what build your credit history.

Annual Fees and Interest Rates

Merrick charges an annual fee of $39 on the Classic Secured Mastercard or $99 on the Premium Secured Mastercard. The Premium card offers a higher initial credit limit (up to $2,500 instead of $2,000) and a lower interest rate range (19.9% to 21.9% APR instead of 19.9% to 24.9% APR). Both cards charge the same annual fee structure — you pay it once per year, usually added to your statement in the month your account opened.

The interest rate you receive depends on your credit profile at the time you open the account. Merrick does not publish a specific credit score threshold, but people with no credit history or scores below 550 typically receive rates at the higher end of the range. The rate does not change automatically as your credit improves — you would need to request a review or wait for a periodic account review by Merrick.

How Merrick Reports to Credit Bureaus

Merrick reports account activity to Equifax and TransUnion consistently. It does not report to Experian. This matters because lenders use different bureaus, and your credit score varies across the three. If a lender pulls only your Experian report, they will see no Merrick account history at all. If they pull Equifax or TransUnion, they will see your full payment history with Merrick.

This reporting gap is a real limitation. You are building credit at two of the three major bureaus, not all three. Your Experian score will not improve from a Merrick account, even if you make perfect payments. If you are rebuilding credit, you may want to pair a Merrick card with another card that reports to all three bureaus, or choose a different secured card that does report to Experian.

Graduation and Credit Limit Increases

After 18 months of on-time payments, you become may be able to access to request a credit limit increase without depositing additional money. Merrick will review your account and may increase your limit based on your payment history. This is not automatic — you have to ask, and Merrick may decline if your account shows late payments or high utilization.

You can also request graduation to an unsecured Merrick card after 18 months. If approved, Merrick returns your deposit and converts your account to a standard credit card with no collateral required. Not everyone is approved for graduation — it depends on your payment history and credit score at that time. If you are denied, you can reapply later or straightforward keep the secured card open and continue building credit.

Comparing Merrick to Other Secured Cards

Other secured cards worth considering include the Capital One Secured Mastercard (no annual fee, reports to all three bureaus, interest rates 19.9% to 24.9% APR) and the Discover it Secured Credit Card (no annual fee, reports to all three bureaus, interest rates 19.9% to 24.9% APR, and earns 2% cash back on restaurants and gas, 1% on all other purchases). Both require a deposit and have similar interest rates, but neither charges an annual fee and both report to Experian.

If your credit score is 620 or higher, you may also may have access to for unsecured cards with no deposit required. The Discover it Student Cash Back card and the Capital One Quicksilver One Cash Rewards card are unsecured options with annual fees but no deposit. The tradeoff is that unsecured cards typically have lower credit limits and higher interest rates than secured cards, but you keep your cash instead of locking it away.

When Merrick Makes Sense

Merrick is a reasonable choice if you have no credit history and need a card that does not require a credit check. It is also straightforward — you know exactly what you are getting, and there are no surprises about how the deposit works. The card will help you build credit at Equifax and TransUnion, and after 18 months you have a path to graduation.

Merrick is not the best choice if you want to minimize fees, if you want to build credit at all three bureaus, or if you want rewards. The $39 or $99 annual fee adds up over time, especially if you carry a balance and pay interest on top of it. If you have options, compare the total cost — annual fee plus interest — across cards before you decide.

Frequently Asked Questions

Can I use a Merrick card right away after opening the account?

Yes. Once your deposit clears and your account is set up, you can use the card when ready. Merrick does not hold the card for a waiting period. You should receive your physical card in the mail within 7 to 10 business days, but you can often use the card number online before the physical card arrives.

What happens to my deposit if I close the account?

Merrick returns your deposit to the bank account you used to fund it, usually within 5 to 7 business days after the account closes. You should pay off any remaining balance before closing. If you have an outstanding balance, Merrick will not return the deposit until the balance is paid in full.

Does Merrick do a hard credit inquiry?

No. Merrick does not perform a hard credit inquiry, so opening an account does not lower your credit score. This is one of the main reasons people with no credit or very low scores choose Merrick — there is no credit check barrier to entry.

Can I increase my credit limit without adding more deposit?

After 18 months of on-time payments, you can request a credit limit increase without depositing additional money. Merrick reviews your account history and may approve an increase based on your payment record. There is no may provide of approval, and Merrick may decline if you have missed payments or carry a very high balance.

What is the difference between the Classic and Premium Merrick cards?

The Premium card has a higher initial credit limit (up to $2,500 versus $2,000), a lower interest rate range (19.9% to 21.9% versus 19.9% to 24.9%), and the same $99 annual fee. The Classic card costs $39 per year. Choose Premium if you need a higher limit and want a better chance at a lower rate; choose Classic if you want to minimize the annual fee.