Merrick Bank is a credit card issuer that specializes in cards for people building or rebuilding credit

Merrick Bank is a Utah-based bank that issues credit cards designed for people with limited credit history, poor credit scores, or no credit at all. The bank does not offer traditional checking or savings accounts — it focuses entirely on credit products. Merrick cards report to all three major credit bureaus (Equifax, Experian, and TransUnion), which means using one can help you build a credit history if you make payments on time.

The bank operates through a parent company called Customers Bank and has been issuing credit cards since 1996. Merrick cards typically come with higher interest rates and annual fees compared to cards for people with established credit, because the bank is taking on more risk. The tradeoff is that Merrick will approve people whom other issuers turn down.

Merrick offers both secured cards (where you put down a cash deposit) and unsecured cards (where you do not). Which type you can get depends on your credit profile and income. Both types work the same way once you have the card: you charge purchases, receive a monthly bill, and pay it back. The difference is what happens to your deposit if you have a secured card.

Key Takeaways

  • Merrick Bank issues credit cards only, not checking or savings accounts, and specializes in cards for people with limited or damaged credit.
  • Cards report to all three credit bureaus, so on-time payments build your credit score over time.
  • Merrick charges annual fees (typically $25 to $35) and higher interest rates than mainstream cards, reflecting the risk the bank takes on.
  • A secured Merrick card requires a cash deposit that acts as collateral; an unsecured card does not, but unsecured approval is harder to get.
  • Merrick does not offer overdraft protection, debit cards, or checking accounts — it is a credit card product only.

How a Merrick secured card works

With a secured credit card, you deposit cash into a savings account held by Merrick. That deposit becomes your credit limit — if you deposit $500, your card limit is $500. You then use the card like any other credit card: charge purchases, pay a monthly bill, and carry a balance if you choose (though carrying a balance costs you interest).

Your deposit stays in the account the entire time you hold the card. You cannot spend it directly. The bank holds it as collateral, meaning if you stop paying your credit card bill, the bank can take money from the deposit to cover what you owe. This is why Merrick can approve people with poor credit — the bank's risk is limited to the amount you deposited.

After you have made on-time payments for a period of time (usually 12 to 18 months), Merrick may convert your secured card to an unsecured card. When that happens, your deposit is returned to you, and your credit limit may increase. Conversion is not automatic — Merrick reviews your account and decides whether to upgrade you. If you are approved for conversion, the deposit typically arrives within 5 to 10 business days after the conversion is processed.

How a Merrick unsecured card works

An unsecured credit card from Merrick works like a standard credit card: you do not put down a deposit, and your credit limit is set by the bank based on your income and credit profile. You charge purchases, receive a monthly bill, and pay it back. The interest rate and annual fee are the same as on a secured card, but you have no collateral at stake.

Unsecured cards are harder to get approved for because Merrick has no deposit to fall back on if you default. The bank typically requires a higher credit score or income to approve an unsecured card. If you have very poor credit or no credit history, a secured card is usually your only option with Merrick.

Fees and interest rates

Merrick cards carry an annual fee of $25 to $35, depending on which card product you choose. This fee is charged once per year and appears on your statement. Unlike some cards that waive the first-year fee, Merrick charges the fee from month one.

Interest rates on Merrick cards vary but typically range from 19% to 24% APR (annual percentage rate). The exact rate depends on your creditworthiness at the time you apply. This is significantly higher than rates on mainstream credit cards, which often fall between 12% and 18% APR for people with good credit. If you carry a balance, you will pay more in interest charges than you would with a traditional card.

Merrick does not charge late fees, over-limit fees, or returned-payment fees — a notable advantage. However, if you miss a payment, the bank will report it to the credit bureaus, which will damage your credit score. Missing payments is far more costly to your credit than any fee.

How Merrick reports to credit bureaus

Merrick reports your account activity to Equifax, Experian, and TransUnion every month. This means every payment you make (or miss) becomes part of your credit history. If you pay on time every month, your credit score should improve over time. If you miss payments or carry a high balance relative to your credit limit, your score will drop.

The most important factor in building credit with a Merrick card is making every payment on time. Even one late payment can set back your progress. Set up automatic payments or calendar reminders to ensure you do not miss a due date. Your payment history makes up 35% of your credit score, so this single behavior matters more than anything else.

Carrying a high balance also hurts your score because it raises your credit utilization ratio — the percentage of your available credit that you are using. If your limit is $500 and you carry a $400 balance, your utilization is 80%, which damages your score. Keeping your balance below 30% of your limit is ideal for credit building.

When Merrick might be the right choice

Merrick is worth considering if you have been turned down for credit cards elsewhere, have no credit history, or are rebuilding credit after a poor financial event (late payments, collections, bankruptcy). The bank's willingness to approve people with damaged credit makes it a real option when mainstream issuers say no.

Merrick is also useful if you want to build credit quickly. Because the bank reports to all three bureaus and approves people with low scores, you can start the credit-building process immediately rather than waiting years for old negative marks to age off your report.

However, Merrick is not the right choice if you already have good credit or if you plan to carry a balance. The annual fee and high interest rate make the card expensive for people who can get approved for mainstream cards. If you have fair credit (a score around 600 to 669), shop around first — you may find better rates elsewhere.

Alternatives to Merrick

Other banks offer secured credit cards with similar terms. Capital One, Discover, and U.S. Bank all issue secured cards for people building credit. Compare the annual fees, interest rates, and credit limit options across these issuers before choosing. Some secured cards have lower annual fees or higher starting credit limits than Merrick.

If you do not want to use a credit card at all, a credit builder loan is another option. You borrow a small amount of money (usually $300 to $1,000), make monthly payments, and the lender reports your payments to the credit bureaus. Once you pay off the loan, you get the money back. Credit unions often offer these loans at lower interest rates than credit cards charge.

A third option is becoming an authorized user on someone else's credit card account. If a family member or friend with good credit adds you to their account, their payment history may help your credit score. This works only if the card issuer reports authorized user activity to the credit bureaus — not all do.

Frequently Asked Questions

Can I use a Merrick card to build credit if I have no credit history?

Yes. Merrick approves people with no credit history and reports to all three bureaus, so on-time payments will create a credit history from scratch. A secured card is the easiest path if you have never had credit before. Start with a small deposit ($300 to $500) and make every payment on time.

What happens to my deposit if I stop paying the card?

Merrick can use your deposit to cover unpaid charges on your account. If your balance exceeds your deposit, you still owe the difference. The bank will also report the missed payments to the credit bureaus, damaging your credit score. Avoid this by setting up automatic payments.

How long does it take to convert a secured card to unsecured?

Merrick typically reviews accounts after 12 to 18 months of on-time payments. Conversion is not may provide — the bank decides based on your payment history and current credit profile. If approved, your deposit is returned within 5 to 10 business days.

Is Merrick Bank a scam?

No. Merrick is a legitimate bank regulated by the Office of the Comptroller of the Currency (OCC). It has been issuing credit cards since 1996. However, the high fees and interest rates mean the card is expensive — only use it if you cannot get approved elsewhere or are actively building credit.

Can I get a Merrick card if I have had a bankruptcy?

Yes. Merrick approves people with bankruptcy on their record, especially if the bankruptcy was discharged more than a year ago. A secured card is your best option. The bank will review your current income and employment, not just your past credit problems.