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Because the Merrick Bank Classic Secured Mastercard® credit card is secured, you have to pay a deposit to open an account. You also have to pay annual fees, although you won’t get any cashback rewards or other benefits to compensate.
This means that there are a number of cheaper and better secured credit cards on the market, so you should shop around before you commit to this particular card. However, if you’re looking for a quick borrowing option with high approval odds, this card is an option.
Quick Review
Merrick Bank provides credit cards for consumers looking to build or rebuild their credit. Credit cards for bad credit scores or limited credit are often secured—meaning that you have to pay a deposit for them.
The Merrick Bank Classic Secured Mastercard® is one of two secured credit cards that Merrick Bank offers. For this card, you’ll have to pay a deposit of $200–$3,000. You can also increase your credit line in one of two ways:
- By increasing your deposit (to get additional secured credit).
- By using your credit card responsibly and waiting for Merrick Bank’s regular account reviews to check your eligibility for credit limit increases (giving you additional unsecured credit).
Although the Merrick Bank Classic Secured Mastercard® credit card gives you a reasonably flexible credit line and credit reporting to all three major bureaus, the downside is an annual fee of $36, plus all the usual fees for features like foreign transactions and cash advances. Although the Merrick Bank Classic Secured Mastercard® credit card isn’t the worst option for holders of bad or limited credit, it’s certainly not the best deal out there.
Merrick Bank Classic Secured Mastercard® Credit Card Important Details
Basic Card Details
- Credit card issuer: Merrick Bank
- Annual fee: $36 (charged as $3 dollars per month after the first year)
- Regular APR: 20.45% (variable)
- Grace period: 25 days
- Initial credit limit: $200–$3,000
Additional Information
- Cash advances available.
- Regular account reviews to check your eligibility for unsecured credit limit increases.
- Foreign transactions available.
- Balance transfers unavailable.
- Reporting to all three credit bureaus.
- Monthly FICO® Score free of charge.
- $0 fraud liability for unauthorized use.
- Mastercard® benefits (e.g., ID theft and fraud protection and 24-hour assistance with lost or stolen cards).
Merrick Bank Classic Secured Mastercard® Credit Card Feature Breakdown
Fees
- Annual fee: $36 (charged as $3 per month after the first year)
- Cash advance fee: $10 or 4% (whichever is greater)
- Foreign transaction fee: 2%
- Late/returned payment fee: Up to $40
- Over-limit fee: None
The fees on the Merrick Bank Classic Secured Mastercard® credit card are slightly expensive, overall. There are definitely cheaper deals available on secured credit cards (no annual fees and/or no foreign transaction fees, for example). So take some time to shop around before you opt for this particular card.
Interest Rates
- Regular APR: 20.45% (variable)
- Cash advance APR: 24.70% (variable)
- Minimum interest charge: $1
If you don’t pay off your Merrick Bank Classic Secured Mastercard® credit card balance in full each month, you’ll have to pay interest charges. The interest rate you’ll pay each year is called your credit card APR (“annual percentage rate”).
Grace Period
A credit card grace period is a time during which, if you pay your balance in full the previous month, you’ll avoid interest charges. For the Merrick Bank Classic Secured Mastercard®, you’ll get a grace period of 25 days (beginning on the first day of the new billing cycle).
If you pay off your balance completely before the end of the grace period (i.e., before the due date), no interest charges will be added to your purchases during this period. However, if you keep a balance on your card from previous billing cycles, you’ll have to pay the usual interest on your purchases.
Rewards
The Merrick Bank Classic Secured Mastercard® credit card doesn’t offer cashback rewards.
For applicants with poor credit or limited credit histories, there are fewer credit cards with rewards available. However, some exceptions exist. For example, the Discover it® Secured card and Petal® credit cards both have cashback rewards for borrowers with bad or limited credit.
So if you’re hoping to get rewards for your credit card purchases, keep looking for other deals.
Benefits
The benefits you get with Merrick Bank credit cards are:
- Mastercard® ID theft protection: This includes TransUnion credit report monitoring as well as dark web monitoring to check for misuse of your personal information (e.g., your credit or debit card information or your social security number).
- Identity fraud expense reimbursement: This means you’re reimbursed for any losses you might suffer if you become a victim of identity fraud.
- Zero fraud liability: This means the credit card issuer won’t hold you responsible for any transactions you haven’t personally authorized.
- 24-hour assistance if your card is lost or stolen: This provides you with an emergency phone number to report your card stolen or lost and to request an emergency replacement card or emergency cash withdrawals.
- Discounted airport concierge services: This gives you 15% savings if you use Mastercard® airport meet-and-greet services.
- Priceless cities and priceless experiences: This is an online collection of experiences curated exclusively for Mastercard® customers in cities around the world—wellness retreats, concerts, dining, museums, art events, and much more.
- Price-drop protection 120-day coverage: This reimburses you the difference in price if you buy something with your credit card and then find it’s advertised cheaper somewhere else within the next few months.
These kinds of benefits are standard across many Mastercard® credit cards as well as many Visa® cards.
Cash Advances
When you use your credit card to withdraw money from an ATM, it’s called a cash advance. Cash advances are allowed on the Merrick Bank Classic Secured Mastercard® credit card.
However, there’s a cash advance fee of $10 or 4% of the total amount you withdraw (whichever is greater). And the APR for cash advances is higher than the purchase APR at 24.70% (variable).
Unlike credit card purchases, credit card cash advances don’t generally have a grace period. They start accumulating interest immediately when you withdraw money on your card. So be careful about using your credit card to take out cash; the interest charges could get expensive.
Balance Transfers
When you move debt from one credit card to another (usually to take advantage of lower interest rates), it’s known as a credit card balance transfer. This is a common form of credit card debt consolidation.
However, you can’t do this with the Merrick Bank Classic Secured Mastercard® credit card, as it doesn’t allow balance transfers. So if you want to consolidate your debts, look for another credit card that allows balance transfers—ideally one with a low balance transfer APR and balance transfer fee.
Foreign Transactions
It’s common for many credit cards to have foreign transaction fees. This fee is often 1%–3% of the transaction amount.
The Merrick Bank Classic Secured Mastercard® has foreign transaction fees equivalent to 2% of each transaction amount, so it has a fairly standard rate.
Credit Limit
Your initial credit limit on the Merrick Bank Classic Secured Mastercard® credit card can be $200–$3,000, depending on your security deposit.
However, after you’ve paid your security deposit, there are opportunities to qualify for unsecured credit: If you keep your account in good standing, Merrick Bank will consider you for credit limit increases without the need for more deposit money.
Credit Reporting
Credit reporting is important for credit building, as your credit report is compiled from the information your lenders send the credit bureaus each month.
Lenders aren’t under any legal obligation to report your credit history. Luckily, the Merrick Bank Classic Secured Mastercard® reports to TransUnion, Experian, and Equifax. This means you can increase your credit scores with the three most important bureaus if you’re borrowing responsibly on the card.
Credit Building
Because Merrick Bank reports to all three major credit bureaus, their credit cards are suitable for credit building. But it’s important to be careful about keeping up with your monthly payments. Your credit may suffer if you don’t pay on time.
Credit Score Requirements
Merrick Bank’s website doesn’t cite any specific credit score requirements for its credit cards. However, it says that its secured cards are designed for building and rebuilding credit. As such, you may be able to qualify even if you have bad credit or a limited credit history.
FICO scores under 580 are considered “bad” or “poor.” You may be eligible even if your score is lower than that.
Application and Approval
To apply for the Merrick Bank Classic Secured Mastercard® credit card, go to the Merrick Bank website and complete their online form.
Note that, to be eligible, you must meet the following requirements:
- You’ve made a security deposit.
- You’re 18 years or older.
- You have a Social Security number.
- You have a verifiable home address in the US (not a PO Box).
- You’re not in the process of filing for bankruptcy.
- You don’t already have a Merrick Bank secured credit card.
- You don’t have any outstanding taxes you need to pay.
- You can verify your identity.
- You can prove that your income is sufficient for you to pay off your debts.
Customer Service
If you need help with your Merrick Bank Classic Secured Mastercard® credit card, contact customer service by phone at (800) 204-5936.
You can also write to them at:
Merrick Bank
Customer Service
P.O. Box 9201
Old Bethpage, NY 11804-9001
Should You Get the Merrick Bank Classic Secured Mastercard® Credit Card?
FinanceJar Verdict
If you’re looking for a secured credit card, you’ll probably be able to find better deals with less expensive fees than the Merrick Bank Classic Secured Mastercard® credit card. For potentially cheaper options, take a look at some other secured credit cards and secured credit cards with no annual fees. Many of these will also offer opportunities for unsecured credit limit increases or the chance to upgrade to an unsecured card after 6 months.
Who is this card for?
- Bad credit holders: Secured credit cards are ideal for bad credit holders; there are minimal requirements as far as your credit, and the approval odds are high (although you’re not absolutely guaranteed to be approved if you have a bad credit score). The Merrick Bank Classic Secured Mastercard® also reports to the three biggest credit bureaus, so it’s an effective way to rebuild credit.
- Borrowers who are struggling to get approved for unsecured cards: If you’re having difficulty getting approved for unsecured credit cards, the Merrick Bank Classic Secured Mastercard® is one way to start with a secured credit card and work your way toward unsecured credit limit increases further down the line. Before you sign up for this card, it’s definitely worth exploring alternatives if you don’t want to be charged monthly for the annual fee.
Comparable Cards
To help you decide whether the Merrick Bank Classic Secured Mastercard® credit card is a good fit for your needs, take a look at how it compares with other cards for credit building and rebuilding.
