Our Verdict
Consumers who are looking to build their credit history may like the Merrick Bank Secured Credit Card. It’s a secured credit card, meaning you must submit a security deposit to the issuer in the amount of your desired credit limit—but it offers the option for a relatively high line of credit, as well as automatic reviews for potential credit limit increases. Although there are no account setup fees, there is an annual fee that may turn off some applicants.
Pros
- Initial line of credit up to $3,000
- Automatic credit line review
- Free FICO Score each month
Cons
- $36 annual fee
- Initial credit line limited to your deposit amount
- 2% foreign transaction fee
Highlights
- 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.
Introduction
If you have no prior credit history or damaged credit due to past missteps, a secured credit card can be a tool to build strong credit history or repair your credit. The Merrick Bank Secured Credit Card reports to the three major consumer credit bureaus—Equifax, Experian and TransUnion—meaning that cardholders can build credit with this card. And, it offers a credit line of up to $3,000, based on the amount of your security deposit.
The Merrick Bank Secured Credit Card also offers several benefits like access to your monthly FICO Score and $0 fraud liability for unauthorized purchases. As you show positive behaviors, it is possible to receive a credit increase without any additional deposit through periodic automated credit line reviews. Customers also have access to their account online or through the mobile app. There are no account setup fees, but there is an annual fee: $36 for first year. Billed $3 per month thereafter.
Quick Facts
- Initial credit limit of up to $3,000, based on your deposit
- Automated credit line review with no additional deposit required
- No setup fee required
- $0 liability for unauthorized use
- Free access to your FICO Score
- Monitor your account with customizable alerts
Other Merrick Bank Secured Card Benefits
- Initial credit limit range. By offering a credit limit range from $200 to $3,000, it can be easier for higher limit cardholders to maintain a lower credit utilization ratio when they make purchases. Credit limits are based on the amount of your security deposit.
- Automated credit line review. These reviews may lead to credit line increases without requiring an additional security deposit.
- Account alerts. Allows you to keep track of your account, make payments, and quickly freeze your card in case it is lost or stolen through the free Merrick Bank goMobile App.
- Flexible payment options. Payments can be made by check, phone and online.
- Paperless statement option. View your statements online conveniently and much faster than waiting for it to arrive by mail.
Fine Print
Interest Rates
- Regular APR: 22.70% Variable
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
Fees
- Annual fee: $36 for first year. Billed $3 per month thereafter
- Foreign purchase transaction fee: 2%
How the Merrick Bank Secured Card Stacks Up
Merrick Bank Secured Credit Card vs. Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card (rates & fees) is meant for consumers that want to build their credit. It requires a refundable security deposit of $49, $99, or $200 depending on an applicant’s creditworthiness for an initial credit line of $200. Applicants who are able to deposit more money upfront can receive a higher credit line. And in as little as six months, an automatic review will have your account considered for a higher credit line.
You can also pick your own monthly due date, establish autopay and set personalized email or text reminders of account alerts.
Additionally, there is a $0 annual fee and no foreign transaction fee.
Merrick Bank Secured Credit Card vs. Discover it® Secured Credit Card
Consumers can build their credit with the Discover it® Secured Credit Card. Upon approval, you’ll deposit an amount equal to your credit line, up to a maximum of $2,500. Payment behavior is reported to all three major credit bureaus to build your credit history. Starting at seven months, your account will receive automatic monthly reviews and with responsible payment behavior your credit card may be converted to an unsecured card.
Beyond the opportunity to build your credit, this secured credit card offers several other benefits. With this card you’ll earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. And with Unlimited Cashback Match™ - Discover will automatically match all the cash back earned at the end of the first year. Your cash back never expires and you can redeem your rewards for cash in any amount and at any time. You’ll also receive your FICO Score for free on your monthly statements, online and in the mobile app.
Merrick Bank Secured Credit Card vs. BankAmericard® Secured credit card*
The BankAmericard® Secured credit card* helps establish, rebuild and strengthen your credit history. It requires a minimum refundable security deposit of $200 to open your account. There is a maximum security deposit and credit limit of $5,000, as determined by a combination of your deposit, income, and ability to pay.
Every month, your free FICO Score updates and is available online and through the mobile app. As your credit history builds, Bank of America will periodically review your account. Based on your overall credit history, you may qualify to have your security deposit returned.
You can sign up for account alerts via text or email for when payments are due and made. Plus, you can access your account online and through the mobile app. You may link your secured credit card to your Bank of America checking account for overdraft protection. In addition, the bank offers a $0 liability guarantee for fraudulent transactions. Although this card does have a foreign transaction fee of 3% of the U.S. dollar amount of each transaction, there is a $0 annual fee.
Compare the Merrick Bank Secured Card With Other Cards
Is the Merrick Bank Secured Card for You?
The Merrick Bank Secured Credit Card will help you build your credit by reporting your activity to credit bureaus. Additionally, it provides free regular FICO Score updates so you can track your progress. You’ll start out with a generous line of credit, depending upon your deposit, and have the opportunity to boost your credit line based on automatic reviews.
Just be aware that other secured cards are available with similar or better benefits without charging an annual fee.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Secured cards are graded based on numerous factors including:
- Annual fees
- Reporting to all three credit bureaus
- Ability to graduate to an unsecured card
- Size of credit limit allowed
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: BankAmericard® Secured credit card. The card details on this page have not been reviewed or provided by the card issuer.
