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 open a checking account or get a mortgage. The company focuses on credit cards designed for people with limited credit history, poor credit scores, or those working to repair past credit damage. Merrick does not offer deposit accounts, savings products, or loans in the traditional sense.

The bank operates as a subsidiary of Customers Bancorp and has been issuing credit cards since 1996. You cannot walk into a Merrick Bank branch because it operates entirely online. All applications, account management, and customer service happen through their website or phone line.

Key Takeaways

  • Merrick Bank issues credit cards only—not checking accounts, savings accounts, or other banking products.
  • The bank targets people with limited credit history or lower credit scores who may not may have access to for standard credit cards.
  • Merrick cards typically require a cash deposit that becomes your credit limit, and you pay an annual fee.
  • Your payment activity with Merrick gets reported to the three major credit bureaus, which can help build your credit score over time.
  • Merrick operates online only, with no physical branches.

How Merrick's Credit Cards Work

Merrick's main product is a secured credit card. With a secured card, you deposit cash with the bank, and that deposit becomes your credit limit. If you deposit $500, your credit limit is $500. You then use the card like a regular credit card—you make purchases, receive a monthly statement, and pay a bill.

The deposit stays in a separate account and is not touched unless you stop paying your bill or close the account. The bank holds it as collateral. You earn no interest on the deposit, and you pay an annual fee (the amount varies depending on the card product). After you demonstrate responsible payment over time—typically 12 to 18 months—Merrick may convert your account to an unsecured card, return your deposit, and lower or eliminate the annual fee.

Your payment history with Merrick gets reported to Equifax, Experian, and TransUnion, the three major credit reporting agencies. This means on-time payments help build your credit score, and missed payments harm it, just like any other credit card.

Who Uses Merrick and Why

Merrick cards are designed for people in specific situations. If you have no credit history—you have never borrowed money or had a credit card—a Merrick card can be your first step. If you have a low credit score from past missed payments, collections, or bankruptcy, Merrick may accept you when other card issuers will not.

The trade-off is cost. You pay an annual fee upfront, and you tie up cash as a deposit. For someone with a 500 credit score and $500 to spare, this cost is often worth it because the alternative is no credit card at all, which means no way to build credit history. For someone with a 750 score, it makes no sense—they would may have access to for cards with no annual fee and no deposit requirement.

Merrick also serves people who have been denied by other card issuers. The bank's approval standards are more lenient than those of major issuers like Chase or Capital One, though you still need to pass basic checks.

Fees and Costs You Should Know

Merrick charges an annual fee that appears on your first statement. The exact amount depends on which card product you choose, but expect it to range from $25 to $99 per year. This fee is separate from your deposit and is charged to your card balance, not deducted from your deposit.

You also pay interest on any balance you carry month to month. Merrick's interest rates are higher than those offered to people with good credit—typically in the 19% to 24% range, depending on the card and your creditworthiness. If you pay your full balance each month, you pay no interest.

There are no foreign transaction fees on some Merrick cards, though this varies by product. There is no penalty for paying early or paying more than the minimum, and there are no inactivity fees if you stop using the card.

Building Credit With Merrick

The main reason people open a Merrick card is to build credit history. Each on-time payment gets reported to the credit bureaus and adds to your payment history, which is the largest factor in your credit score. After 6 to 12 months of on-time payments, you may see your score rise noticeably.

To use Merrick effectively for credit building, treat it like any other card: charge small amounts you can afford to pay off, pay on time every month, and keep your balance low relative to your credit limit. Using more than 30% of your available credit hurts your score, even if you pay on time. With a $500 limit, try to keep your balance under $150.

After 12 to 18 months of responsible use, Merrick may automatically convert your account to an unsecured card. When this happens, your deposit is returned, and the annual fee may be waived or reduced. At that point, you can close the Merrick card and move to a card with better terms, or keep it open to maintain your credit history length.

Merrick Versus Other Credit-Building Options

Merrick is not the only way to build credit. Other secured card issuers include Capital One, Discover, and U.S. Bank. Some of these cards have lower annual fees or higher deposit limits. A few issuers offer unsecured cards to people with lower scores, though approval is less certain.

Another option is a credit-builder loan from a credit union or online lender. With this product, you borrow a small amount (usually $500 to $1,000), and the lender holds the money while you make monthly payments. Once you finish paying, you get the money back. This builds payment history without the annual fee, though it requires you to make loan payments rather than use a card.

The choice between Merrick and alternatives depends on your situation. If you have no credit history and want a straightforward way to start, Merrick works. If you want to avoid annual fees, a credit-builder loan may be better. If you want the option to use the card for everyday purchases while building credit, a secured card like Merrick's makes more sense than a loan.

How to Manage a Merrick Account

Once you open a Merrick account, you manage it online through their website or mobile app. You can view your balance, make payments, read statements, and update your contact information. Merrick also offers phone support if you have questions or need to dispute a charge.

Payments can be made online, by phone, or by mail. Online and phone payments typically post within one business day. Mail payments take longer and may arrive after your due date, so online payment is safer if you are close to your important date.

Your monthly statement shows your balance, minimum payment due, interest charges, and annual fee (if applicable). The due date is the same each month. Missing a payment by even one day gets reported to the credit bureaus as late, so set up automatic payments or calendar reminders if you tend to forget.

Frequently Asked Questions

Can I use a Merrick card right away after opening the account?

Yes. Once your account is approved and your deposit is received, you can use the card when ready. You do not have to wait for a physical card to arrive in the mail, though you will need the card number to make online purchases. The physical card usually arrives within 7 to 10 business days.

What happens if I miss a payment on my Merrick card?

A missed payment gets reported to the credit bureaus and damages your credit score. Merrick may charge a late fee (typically $25 to $35) and increase your interest rate. If you miss payments repeatedly, Merrick may close your account and use your deposit to cover the debt.

Can I increase my credit limit with Merrick?

You can request a credit limit increase by depositing more money. If you deposit an additional $200, your limit rises to $700. Some cardholders report that Merrick offers automatic increases after a period of on-time payments, though this is not may provide.

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

Merrick typically converts accounts after 12 to 18 months of on-time payments. The conversion is not automatic—Merrick reviews your account and decides whether to offer it. There is no way to speed up the process, but consistent on-time payments make conversion more likely.

Is Merrick Bank FDIC insured?

Your deposit is held in a separate account and is FDIC insured up to $250,000, so your money is protected. However, Merrick is not a full-service bank, so this insurance applies only to your deposit, not to any other relationship you might have with the bank.