My In-Depth Review of the Merrick Bank Secured Credit Card: A Flexible Way to Build Credit

It can feel like you’re stuck in a never-ending loop. You desperately want to rebuild your credit, but after a few declined applications, you realize your credit score isn’t high enough to get approved for even a basic card.

I’m here with some good news: Chances are, you may not have been applying for the right card. Now, that may not sound like good news after a bunch of rejections, but the Merrick Bank Secured Credit Card may be a good option to help you break that cycle.

This card is designed specifically for folks in credit-rebuilding mode, so you could qualify even if you have poor credit. And because it is a secured card, it can help you ease your way into (or back into) the world of credit without worrying about racking up unmanageable debt.

By the end of this review, you’ll know everything you need to know about this card, including how much it costs to own and use, what the application process looks like, and what other options are worth considering.

I’ll even throw in plenty of advice on making the most of the Merrick Bank Secured Credit Card so you can move on to better credit cards when you’re ready. So, let’s dive in.

The Merrick Bank Secured Credit Card is issued and serviced by Merrick Bank®, so you won’t have to remember the names of any other financial companies or deal with a third party. 

Its cards come in Visa® or MasterCard® varieties, which means you can use them anywhere that accepts credit cards.

The Security Deposit

A secured credit card is a low-risk way for a lender to help you rebuild your credit. To use the account, you must put down a security deposit as collateral that the creditor can seize if you don’t pay your bill.

Your security deposit then becomes your credit limit. So, if you pay $500 when you open your account, you can purchase up to $500 in goods and services. As with a traditional unsecured credit card, as you pay down your balance, you can reuse your credit line.

You’ll need to put down at least $200 to get the card. But after that, you can boost your security deposit (and spending power) any time up to $3,000, with $50 being the minimum increment.

Merrick Bank Secured Credit Card

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• 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.

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Our Rating

★★★★★

4.0

Merrick Bank® will also regularly review your account to see if you’re eligible for a credit limit increase. If qualified, you may be able to spend more without adding to your security deposit. 

Your responsible account management will signal to the bank that you can be trusted with a partially unsecured credit line. 

Since Merrick Bank® is a Member FDIC, you can rest assured that your security deposit funds will be kept safe as long as you’re a cardholder. Just note that, although you are dealing with a bank, your deposit won’t earn interest.

Plus, you can’t withdraw any funds while your account is still open. When it’s time to move on, you can get your security deposit back (less any outstanding card balance) within 30 days of closing the account.

Fee Structure

While this card is much less expensive to carry than many unsecured options for people with bad credit, it isn’t fee-free. Here’s what you can expect to pay:

• Annual fee: $36 (lump sum in year one; $3 per month in subsequent years)
• Account setup fee: $0
• Purchase annual percentage rate (APR): 21.95% variable
• Cash advance APR: 26.95% variable
• Cash advance fee: The greater of $10 or 4%
• Foreign transaction fee: 2%
• Late payment fee: Up to $40
• Returned payment fee: Up to $40
• Over limit fee: $0

These fees are downright reasonable when you compare them with unsecured credit cards you might qualify for. Just the annual fees on some of the cards I’ve recently reviewed can reach $175 or more.

The bottom line: If you pay your bill in full and on time every month and don’t use your card abroad or to take out a cash advance, it will cost you $3 per month to maintain and use your account. That’s more than a fair price to pay to rebuild your credit.

Tri-Bureau Credit Reporting

All of your activity on the Merrick Bank Secured Credit Card will be reported to the three major credit bureaus (Equifax, Experian, and TransUnion). The bureaus will see your current balance, your credit limit, your payment history, and more.

The way you manage your account will determine its impact on your credit score. For the best results, always pay your bill on time, as payment history accounts for 35% of your FICO score. 

Almost as important: Keep your balance under 30% of your credit limit. Credit utilization accounts for 30% of your credit score.

Merrick Bank® is pretty vague about its credit requirements for this card, but there are a few requirements. From what I found, you must:

• Be age 18+.
• Have a valid Social Security number (SSN).
• Live at a verifiable street address.
• Not be insolvent or have filed for bankruptcy.
• Not have another secured credit card account with Merrick Bank®.
• Put down a security deposit of at least $200.

The bank doesn’t publish its credit score or income qualifications. However, according to CreditKarma, the average credit score of members matched to this, and similar cards, is 621, while the most common score is 572. 

Matched members also earn an average of $76,411 annually.

When you’re rebuilding your credit, you need to make on-time payments, stay ahead of fraudsters, keep tabs on your progress, and reach a helpful agent if there’s a problem. 

Here’s what Merrick Bank® offers to help you do these things: 

Mobile App

The Merrick Bank® mobile app gives you 24/7 access to your account. With it, you can:

• View your current balance.
• Access your account statements.
• Make one-time payments.
• Set up automatic payments for the minimum amount or full balance.
• Set up account activity alerts for upcoming or posted payments, credit score updates, balance thresholds, and more.
• Freeze your account to prevent new charges (and unfreeze it when desired).

The app is available for Apple and Android devices. Raters in the Apple App Store give it 4.7 out of 5 stars, while raters in the Google Play Store give it 4.4 out of 5 stars.

One thing I’ve noticed with mobile apps tied to financial products is that some people will only bother rating them if they have a bad experience. So, these ratings are definitely a green flag for the Merrick Bank® app. 

Credit Score Access & Fraud Protection

As a cardholder, you can track your trajectory by reviewing your free FICO credit score each month. Make it a priority to check your score so you know if you’re headed in the right direction. I mean, that’s probably why you are considering this card in the first place, right?

You can also get tips that help you understand your credit score, so you know which financial behaviors to prioritize (and which to avoid).

This card also helps you protect your credit score with 24/7 fraud monitoring and $0 fraud liability. If your card is lost or stolen and someone unauthorized uses it, you’re not responsible for the charges they rack up.

Important note: You must report your card lost or stolen in a timely manner to benefit from this protection.

Customer Support Responsiveness

I like how you can call customer service 24/7, and I’m impressed by how fast a human gets on the line. I called (800) 204-5936 around 4:45 PM on a Friday, and a representative answered within two minutes.

I asked the rep about credit limit and account upgrade reviews, but since I’m not a cardholder, they referred me to the application department. So, I called 1-801-545-6702 and was again greeted in under two minutes.

The rep was friendly, but gave information that was different from what I found on the bank’s website. They said the only way to get a credit limit increase was to add to your security deposit, and that you couldn’t get an unsecured credit limit increase upon a favorable account review.

Transparency and Trust

I like that the bank is upfront about its fees, and you can easily project what owning the card will cost you each month and year.

While it’s not the biggest deal, having to wait up to 30 days to get your security deposit back after closing your account seems a bit long. I understand that the bank needs time for pending charges to post and for the account closure to be processed, but the delay can be frustrating if you need your cash back quickly.

Overall, Merrick Bank® has a mostly positive reputation. While you can certainly find Redditors who say the bank is difficult to deal with, 84% of 19,000+ reviewers on Trustpilot give the financial institution a five-star rating.

If you received an invitation to apply for this card in the mail, you can start the process by visiting the site listed on the paperwork. Enter your acceptance certificate number from the letter, your last name, and your email address (optional). Then, click “Unlock your offer.”

From there, I imagine you’ll see the actual application form. However, since I didn’t receive an invitation, I can’t be sure.

I went through the Merrick Bank Secured Credit Card’s regular application. At first glance, I like the simplicity of this one-page application. Here’s what I experience, step-by-step:

Step 1: Choose a Card Color

This application begins differently from most by allowing me to choose the credit card color I want.

I chose the yellow card design to match my sunny disposition, but you can also select pink, blue, green, or classic black.

Step 2: Name, Birth Date, SSN & Personal Details

Next, I fill in my name, contact details, and identifying information, such as my date of birth, SSN, and mother’s maiden name. After that, I click the toggle button to enroll in paperless statements (hurray for less clutter!). Then, I click, “Continue to the next step.”

One thing I find odd: Even though I enroll in paperless statements during this step, the fine print says I need to re-enroll in the Cardmember Center within 60 days to keep getting digital documents.

Step 3: Annual Income & Housing Payment

I enter my gross annual income (which I sadly can’t classify as non-taxable) and my monthly mortgage payment. I click the button next to “No” to indicate that I won’t be using a debit card or checking account to pay my security deposit. Then, I click “Continue to the next step.”

Note: According to the fine print, you don’t have to include alimony, child support, or separate maintenance income in your gross annual income unless you want the bank to consider it when evaluating your application.

Step 4: Electronic Communications Disclosure

I click on the “E-Sign Disclosure and Consent” link and read through the .pdf that appears. The TL;DR: 

• You still need to opt out of paper monthly account statements. 
• This disclosure applies to receiving select account information electronically, such as changes to the card’s terms and conditions or privacy policy.
• Electronic communication means messages sent to your email address or online account.
• If your email address changes, you need to notify the bank.
• Your computer must meet some incredibly easy-to-exceed technical specifications to receive electronic communication.
• You can withdraw your consent to receive information electronically at any time.

Next, I click the “Privacy Policy” link and read the document that appears. In a nutshell, the bank won’t share your information for marketing purposes. However, it will share your information to facilitate transactions, update the credit bureaus, and respond to court orders.

After that, I click the “I agree” checkbox to indicate that I’m OK with getting account information electronically. Then, I click “Continue to the next step.”

Note: Don’t bother clicking the “Click here” link. It takes you to the same E-Sign Disclosure and Consent document you already read (or should have!).

Step 5: Read the Terms & Fees

I read the Summary of Terms, which gives me key information about the card’s credit limits, APR, fees, and more. Then, I click “Continue to the next step.”

Note: It’s not a riveting read, but it deserves at least a moment of your time so you really understand how this account works before submitting your application. You can print a copy of the account terms for future reference, but I have better uses for my paper and ink, so I don’t.

Step 6: Security Deposit Payment Details

Earlier in this process, I opted not to pay the security deposit using my debit card or checking account because I didn’t want to give the bank that information.

Here, I click “Other Ways to Pay” to send the deposit via Western Union, MoneyGram, money order, or check. Then, I click “Continue to the next step.”

Important note: Unlike some secured credit cards that let you pay your security deposit after your application gets approved, the Merrick Bank Secured Credit Card requires you to put money down before the financial institution will review your application. If your application gets declined, the bank will refund your security deposit within 20 days.

Paying your security deposit electronically with your bank account or debit card during the application process will expedite your decision. 

If you choose another payment method, you’ll have 20 days to send the bank the required funds. If you don’t pay your security deposit during this window, your application will be declined.

Step 7: Review Personal Information

I review my information. Everything looks good, but I did erase my data before taking this screenshot.

It’s not like most of these details aren’t already publicly available or floating around on the dark web, but I do like to pretend that I can protect my identity.

Step 8: Certify My Info & Submit

I read the fine print. Here are the highlights:

• I promise that the information I provided is accurate.
• I agree that the bank can check my credit report.
• I affirm that I’m over the age of 18 (way over!), have a valid SSN, and have a verifiable home address.
• I authorize the Social Security Administration to help the bank verify my identity.

Then, I enter my initials as an electronic signature.

Please note: I don’t actually apply for this card. I went through the process to give you a clear breakdown of what to expect, but stop short of clicking “Submit.”

That means I’m not 100% sure what happens immediately after you submit your application. Based on my experience applying for other cards, I think you’ll likely receive your application decision almost instantly (assuming you’ve already paid your security deposit). However, the bank could ask you for more information.

If approved, you can expect to receive your card in the mail within 10 business days. When it arrives, follow the instructions to activate it, and start using your new account!

While the Merrick Bank Secured Credit Card is a solid credit-rebuilding tool, it isn’t right for everyone. By this point, you probably already have an idea if it’s right for you, but I’ll lay out some scenarios just in case you’re still on the fence.

You may want to consider applying for it if you:

• Keep getting declined for unsecured credit cards.
• Have the cash available to pay the security deposit.
• Think the value of the card’s benefits outweighs the cost of ownership.
• Plan to pay the card off every month (or at least keep your balance low).
• See this card as a financial stepping stone and have a clear plan to upgrade when possible.

However, you should probably look at other options if you:

• Can qualify for an unsecured credit card (especially one with no fees or that pays out rewards).
• Can’t afford to tie up your funds in a security deposit.
• Think the fees are too high for what you get in return.
• Believe you’ll likely carry a high balance from month to month, or aren’t confident you can make consistent, on-time payments.
• Don’t have a clear plan for using this card to improve your credit score.

Which of these profiles seems most like you?

Every credit card has its perks and pitfalls. Here’s a recap of the benefits and drawbacks of the Merrick Bank Secured Credit Card:

If you’re still going back and forth, ask yourself these questions: 

Do the card’s strengths help solve my problem?
Can I live with, or at least understand, the not-so-great aspects of this account?

You don’t need to tell me the answers, but they will give you some clarity on whether or not you should apply.

Before you apply for the Merrick Bank Secured Credit Card, it’s wise to check out some other options. I did a little comparison shopping for you and found two alternatives worth considering:

Aspire® Cash Back Rewards Mastercard

The Aspire® Cash Back Rewards Mastercard is an unsecured option, so the cash you would use as a security deposit can go toward building an emergency fund or covering your day-to-day expenses. You can also earn cash back rewards, such as 3% on eligible gas, groceries, and utilities, and 1% on all other eligible purchases.

Aspire® Cash Back Rewards Mastercard

APPLY HERE »

• Earn Cash Back Rewards* – 3% on Eligible Gas, Groceries, and Utilities, and 1% on All Other Eligible Purchases
• Up to $1,000 credit limit subject to credit approval
• Prequalify** without affecting your credit score
• No security deposit
• Free Access to your Credit Score†
  *See Program Terms for important information about the cash back rewards program.
  ** Prequalify means that you authorize us to make a soft inquiry into your credit history (that will not affect your credit) to create an offer. If you accept an offer a hard inquiry will be made. Final approval is not guaranteed if you do not meet all applicable criteria (including adequate proof of ability to repay). Income verification through access to your bank account information may be required.
  † Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.

Show MoreShow Less See application, terms, and details. »

Our Rating

★★★★★

4.7

The kicker? You’ll pay a very high fixed APR if you don’t pay your card off in full each month. You’ll also have to pay a steep annual fee depending on your credit profile. The cost to own this card can easily outweigh the rewards you earn — especially if you have a low credit limit.

Capital One Platinum Secured Credit Card

The Capital One Platinum Secured card has no annual or foreign transaction fees. Plus, you can get a $200 initial credit limit with a security deposit as low as $49 (depending on your creditworthiness). 

Capital One may start reviewing your account for a credit line increase after six months of responsible use. You can also use the card issuer’s proprietary tool, CreditWise, to track your credit score and get credit-building tips.

There are a few downsides to this card, though. For starters, you’ll pay a 28.99% variable APR on balances you carry over from month to month. Plus, your initial credit line is capped at $1,000, and you can’t increase your security deposit (and thus your spending power) after you open your account.

I’ve reviewed quite a few secured credit cards, and this one sits higher than most on my list. I appreciate the ability to increase your security deposit at any time and see your FICO® credit score every month. You’d be surprised how many cards in this category don’t include this feature!. 

The card’s fees and APR are also lower than many of the other accounts I’ve investigated.

So, here’s my final takeaway after we’ve spent 3,000+ words together: If you want a secured credit card with a credit limit you can expand at will, give the Merrick Bank Secured Credit Card a hard look. 

But you should still do a little comparison shopping around before putting your cash down as a deposit. And even if you do get this card, plan for it to be a temporary experience on your way to better offers once your credit score has improved.