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, not a full-service bank where you deposit money or pay bills. The company focuses on secured credit cards — cards backed by a cash deposit you put down — and unsecured cards for people with limited or damaged credit history. Merrick does not offer checking accounts, savings accounts, or traditional banking services. If you are looking at Merrick, you are likely considering a credit card product, not a place to hold your money.

The bank is owned by Marlette Funding, a private company, and has been operating since 1988. Merrick cards report to all three major credit bureaus (Equifax, Experian, and TransUnion), which means on-time payments can help build your credit score over time. The company is not a scam, but it is not a mainstream bank either — it exists specifically to serve people who cannot get approved for standard credit cards elsewhere.

Key Takeaways

  • Merrick Bank issues credit cards for people with poor, limited, or no credit history, not traditional bank accounts.
  • Secured cards require a cash deposit ($200 to $2,500 depending on the card) that acts as collateral and usually becomes your credit limit.
  • Merrick reports payment history to all three credit bureaus, so responsible use can improve your credit score over months.
  • Annual fees, interest rates, and terms vary by card product and your creditworthiness at the time of application.

How Merrick's secured credit cards work

A secured credit card requires you to deposit money into a savings account held by the bank. 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: make purchases, receive a monthly statement, and pay a bill. The deposit sits untouched in the background; the bank holds it as insurance in case you stop paying.

After 12 to 24 months of on-time payments, Merrick may convert your secured card to an unsecured card, meaning you get your deposit back and keep the card with a new credit limit based on your payment history. This conversion is not automatic — Merrick reviews your account and decides whether to upgrade you. Some cardholders never see a conversion and keep paying the annual fee on a secured card indefinitely.

The deposit earns little to no interest. You are paying for the privilege of building credit, not for a savings vehicle. If you close the account or default on the card, Merrick keeps the deposit and may apply it to your unpaid balance.

Fees and interest rates you will encounter

Merrick cards carry annual fees that range depending on the specific product. Some cards charge $25 to $35 per year; others charge more. These fees are charged to your card balance, so if you have a $500 limit and a $35 annual fee, you effectively have $465 available to spend. The fee is charged whether you use the card or not.

Interest rates (APR) on Merrick cards are typically high — often 19% to 24% or higher — because the bank is taking on risk by lending to people with poor credit. If you carry a balance month to month, interest charges add up quickly. The best strategy with a Merrick card is to charge small amounts and pay the full balance each month, avoiding interest entirely.

Late fees, over-limit fees, and returned-payment fees also apply. Missing a payment by even a few days can trigger a late fee of $25 to $40, and it will be reported to the credit bureaus, damaging the credit score you are trying to build.

What happens to your credit report

Merrick reports your payment history to Equifax, Experian, and TransUnion every month. This means every on-time payment shows up on your credit report and helps your score climb. A single late payment also shows up and can drop your score by 50 to 100 points or more, depending on your current score and history.

The credit limit itself is also reported. A low limit ($500 or $1,000) does not hurt your score, but using most of it does. If your limit is $500 and you carry a $400 balance, your credit utilization is 80%, which lowers your score. Keeping your balance below 30% of your limit — $150 in this example — is better for your score.

Building credit with Merrick takes time. You will not see major score improvements in the first month or two. Most people see meaningful gains after 6 to 12 months of consistent on-time payments. The longer your account stays open and active, the more it helps your score.

When Merrick makes sense and when it does not

A Merrick card makes sense if you have been denied for other credit cards and genuinely want to build credit from scratch. The secured card is a tool — you deposit money you can afford to lose access to for a year or more, and in exchange you get a credit-building opportunity. This works if you can afford the deposit and commit to paying on time every month.

A Merrick card does not make sense if you are looking for a place to save money, if you cannot afford the annual fee, or if you are not confident you can pay the bill on time. The high fees and interest rates mean you are paying for the privilege of building credit. If you already have access to a standard credit card, use that instead.

Merrick also does not make sense if you are trying to avoid debt. A credit card — even a secured one — is still debt. If you are working to pay down existing debt, adding another card payment to your budget can make that harder.

Alternatives to Merrick Bank cards

Other banks offer secured credit cards with lower fees or better terms. Capital One, Discover, and U.S. Bank all have secured card products. Compare the annual fee, interest rate, and conversion timeline before choosing Merrick. Some secured cards charge no annual fee or charge a lower fee than Merrick's offerings.

If you do not want to put down a deposit, some credit card issuers offer unsecured cards for people with poor credit, though interest rates and fees are usually even higher than secured cards. Becoming an authorized user on someone else's credit card account is another route — you get the benefit of their payment history without opening a new account, though this only works if the primary cardholder has good credit and pays on time.

Credit-builder loans are another alternative. You borrow a small amount (usually $300 to $1,000), make monthly payments, and the lender reports your payment history to the credit bureaus. You pay interest, but you also build credit and end up with cash at the end. Some credit unions offer these at lower rates than credit cards.

How to apply and what to expect

You can apply for a Merrick card online through their website. The application asks for basic information: name, address, Social Security number, income, and employment. Merrick performs a hard inquiry on your credit report, which temporarily lowers your score by a few points.

Approval decisions usually come within a few days. If approved, you will receive instructions to fund your secured deposit. You typically have 10 to 30 days to send the deposit; if you do not, your approval expires. The deposit can be sent by check, wire transfer, or ACH transfer depending on Merrick's current options.

Once Merrick receives your deposit, your card is activated and mailed to you. The entire process from application to receiving the physical card usually takes 2 to 3 weeks. You can use the card as soon as it arrives.

Frequently Asked Questions

Can I get my deposit back if I close the account?

Yes, if your account is in good standing and you have no unpaid balance, Merrick will return your deposit within 7 to 10 business days of closing the account. If you have a balance or unpaid fees, Merrick applies the deposit to what you owe first.

What if I miss a payment?

A missed payment is reported to the credit bureaus and damages your credit score. Merrick will charge a late fee (typically $25 to $40) and may increase your interest rate. If you miss a payment by 30 days or more, Merrick may freeze your account or close it. Contact Merrick immediately if you cannot pay on time.

Does Merrick convert secured cards to unsecured automatically?

No. Merrick reviews your account after 12 to 24 months and decides whether to convert you. On-time payments, low utilization, and a good payment history increase your chances, but conversion is not may provide. Some customers keep secured cards for years.

Is Merrick Bank FDIC insured?

Yes, Merrick Bank is FDIC insured for deposits held in savings accounts, including the deposit backing your secured card. Your deposit is protected up to $250,000 per account holder. This does not protect you from the bank's business decisions, such as closing your account.

Can I use a Merrick card to pay bills?

Yes, you can use a Merrick credit card anywhere Mastercard is accepted, including to pay bills online or by phone. However, paying bills with a credit card often triggers a cash advance fee or higher interest rate, so check Merrick's terms first. Paying your credit card bill itself must be done through Merrick's payment system, not with another card.