A simple secured card to rebuild your creditworthiness.
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The Merrick Bank Secured Visa card is a simple card that doesn’t come with perks like a low intro APR or rewards. But it can offer you a solid opportunity to rebuild your credit with no set-up fees.Your security deposit becomes your credit limit, and Merrick Bank reports on-time payments and other details to all three major credit bureaus. You can also use it to build up to a Merrick Bank unsecured card.
| Product Name | Merrick Bank Secured Visa® Card |
|---|---|
| APR for Purchases ( Purchase Rate ) | 18.70% variable |
| Annual fee | $36 the first year. Billed $3 per month thereafter |
| Cash Advance Rate | 23.70% variable |
| Card Type | Visa |
| Interest Free Period The interest-free period on purchases is the period or number of days you do not have to pay interest on your card purchases. You will be charged interest either from the day you make a purchase or from the statement date, unless you pay the closing balance in full by the due date (or within the interest-free period) on your statement. | Up to 25 days |
| Returned Payment Fee | $38 |
| Foreign Currency Conversion Fee (VISA) Foreign currency conversion fees are charged when you make a transaction that is converted by a credit card network, such as MasterCard, Visa or American Express, from Australian dollars to a foreign currency. You’ll also incur a currency conversion fee if you make a purchase or obtain a cash advance in Australian dollars while overseas or shopping online with a foreign merchant or financial institution. | 2% of each transaction in U.S. Dollars% of transaction value |
| Minimum Interest | $1 |
| Minimum Age | 18 years of age |
|---|---|
| Min credit limit This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure. | $200 |
| Max credit limit This credit limit may not be issued to you immediately on application. This is the maximum credit limit for this card which must be applied for or offered to you after you are approved and have already opened the account. | $3,000 |
| Annual fee | $36 the first year. Billed $3 per month thereafter |
|---|---|
| Returned Payment Fee | $38 |
| Over The Credit Line Fee | $0 |
| Late Payment Fee | $38 |
| Cash Advance Fee | $10 or 4% of the amount of each cash advance, whichever is greater |
The Perks
If you have poor or no credit, a secured credit card can help you build or rebuild your credit. Your initial line of credit is based on your security deposit, opening up the ability for you to re-establish your credit through responsible everyday spending.
- Reports to major credit bureaus. This helps you develop healthy credit more quickly.
- Reasonable security deposit. You’ll have 80 days to fund a deposit of as low as $200, which is FDIC insured.
- Low foreign transaction fee. Compared with other secured cards, 2% is reasonable for overseas spending.
- Free monthly FICO® Score. Monitor your score while you repair your creditworthiness through monthly updates on your progress.
What to watch out for
Because Merrick Bank reports to the three major credit bureaus, you can boost your creditworthiness quickly. But you’ll want to consider a few drawbacks when weighing whether to apply.
- Annual fee. It’s not uncommon to pay a fee for a secured card, but you may be able to find a card without one, like the DFCU Visa Platinum Secured Credit Card.
- Deposit required with application. You’ll submit your deposit before approval, which means you’ll need to plan to be without this cash for up to six weeks even if you’re not approved.
- Higher APR for advances. Cash advances come with a higher 23.70% variable APR.
- No automatic upgrade to secured. Some providers offer an upgrade to an unsecured card to reward you for improving your credit. Merrick Bank does not.
- No rewards. You won’t get points or cash back with this card.
How to apply for Merrick Bank Secured Visa Card
Because your line of credit is based on the security deposit you put down with your application, you won’t need a strong credit score for approval. However, if you have any pending bankruptcy filings or outstanding tax obligations, you may have to look elsewhere.
You must be at least 18 years old to apply for the Merrick Bank Secured Visa Card and willing to provide your Social Security number, date of birth, annual income and monthly rent or mortgage payment.
1. Go to Merrick Bank’s website and find the Merrick Bank Secured Visa Credit Card. Click Apply Now.
2. Choose a card design and complete the application form with your personal contact information. Click Continue to next step.
3. Merrick Bank will walk you through the remaining steps, which include providing your financial information, e-signing your forms, reviewing the terms and conditions and funding your security deposit.
4. Confirm the information you’ve provided and submit your application.
How long will it take to be approved?
Because there’s no credit score to check, you’ll wait up to six weeks for Merrick Bank to process your application and security deposit. If accepted, you’ll receive a letter within six weeks.
I got the card. Now what?
You’re on your way to rebuilding your overall credit history and financial health. Here are some important tips to help making your payments a little easier.
- Manage your account online. Set up an online account to monitor and stay on top of your spending. Consider setting up autopay to guarantee on-time payments.
- Avoid unnecessary interest. After the close of each billing cycle, you have a grace period of 25 days to pay your balance. If you do, you won’t pay interest on your purchases.
- Avoid fees. Returned payments come with hefty fees of up to $38. Balance transfers, cash advances and foreign transactions also come with fees.
- Contact customer service. If you have questions, you’re limited to calling Merrick Bank at 800-204-5936.
What customers are saying about the Merrick Bank Secured Visa
The Merrick Bank Secured Visa gets fair to good reviews from its cardholders, with many customers claiming the bad reviews are coming from people who don’t understand how credit works. Merrick Bank Corporation gets and A+ from the Better Business Bureau and 3.5 stars out of 5 from Consumer Affairs.
Bottom line
If you’re looking to build or improve your credit score, the no-frills Merrick Bank Secured Visa Card could help with regular reporting to the three major credit bureaus — if you use your card responsibly and make on-time payments and keep your credit utilization ratio low.
Your guide to secured credit cards