Merrick Bank is an online bank that offers credit cards and personal loans to consumers with less-than-perfect credit. Merrick Bank was founded in 1997 and is based in South Jordan, Utah. The bank is owned by the CardWorks servicing company and serves over 1 million customers.
In this comprehensive Merrick Bank review, we’ll provide an overview of their credit cards, personal loans, fees, rates, and more. We’ll also answer some frequently asked questions about Merrick Bank.
Merrick Bank Credit Cards
Merrick Bank offers several Visa and Mastercard credit cards for people with fair credit or bad credit. These secured and unsecured credit cards can help build or rebuild your credit.
Merrick Bank Secured Visa Credit Card
The Merrick Bank Secured Visa Credit Card requires a refundable security deposit that becomes your credit limit. The deposit amount ranges from $200 to $3,000. This card is essentially a secured loan that helps establish a credit history.
The Secured Visa card has an annual fee of $36 and a variable APR between 17.45% to 23.45%. There are no rewards with this card. You can graduate to an unsecured card after making seven consecutive on-time monthly payments.
Merrick Bank Unsecured Visa Credit Card
The Merrick Bank Unsecured Visa Credit Card does not require a security deposit. However, it does have high-interest rates and fees compared to other unsecured cards.
The Unsecured Visa card has a $36 annual fee and a variable APR between 17.70% to 23.70%. There are no rewards, but the card reports to all three major credit bureaus.
Merrick Double Your Line Visa Credit Card
The Double Your Line card offers a credit limit increase after the first seven monthly payments are made on time. The initial limit ranges from $300 to $1,000.
This card has a $36 annual fee and a variable 17.70% to 23.70% APR. There are no rewards, but it can help build credit through responsible use.
Merrick Bank Platinum Visa Card
The Merrick Bank Platinum Visa Card is the bank’s newest unsecured card. It offers a competitive APR as low as 15.49% variable for qualified borrowers.
The Platinum Visa card comes with a $36 annual fee. Benefits include credit limit increases, free monthly FICO score tracking, and fraud protection. But there are no rewards programs.
Merrick Bank Personal Loans
In addition to credit cards, Merrick Bank offers personal installment loans from $1,000 to $5,000. These loans have fixed interest rates and terms of up to 60 months.
Personal loans from Merrick Bank can be used for debt consolidation, major expenses, home improvements, and more. These installment loans are available in 44 states.
To qualify for a Merrick Bank personal loan, you’ll need:
- Minimum credit score of 640
- Verifiable income source
- S. checking account
Merrick Bank personal loans have interest rates ranging from 7.95% to 35.99% APR with autopay discounts available. There are no application fees, prepayment penalties, or origination fees.
Merrick Bank Pros
Here are some of the key benefits of Merrick Bank credit cards and loans:
- Products for fair credit – Merrick Bank specializes in products for borrowers with less-than-perfect credit or no established credit history. Their cards and loans can help build credit.
- Fast applications – Merrick Bank offers quick, online applications with fast decisions. Funds may be available the next business day after approval.
- Credit limit increases – Responsible cardholders may qualify for higher credit limits after making consecutive on-time payments with Merrick cards.
- Fixed loan rates – Personal loans from Merrick Bank come with fixed interest rates, so your monthly payment won’t fluctuate.
- Customer service – Merrick Bank has U.S.-based customer service available seven days a week for support by phone, email, or chat.
Merrick Bank Cons
Here are some potential downsides of using Merrick Bank:
- High APRs – Interest rates for Merrick Bank credit cards and loans are higher than average, especially for borrowers with fair/poor credit. Their top rates exceed 35%.
- Annual fees – Most Merrick credit cards charge annual fees ranging from $36 to $48. But there are no application fees.
- Security deposits – Their secured Visa card requires an upfront security deposit equal to the credit limit. This deposit is fully refundable after graduating to another card.
- No rewards – Merrick Bank cards do not offer any cash back, points, or travel rewards. You’re mainly building a credit history.
- Loan requirements – Personal loans have minimum credit score requirements and limited loan amounts. Approval is not guaranteed.
- Origination in Utah – Merrick Bank operates under Utah state lending laws, which may impact rates and available products in your state.
Frequently Asked Questions About Merrick Bank
Here are answers to some common questions consumers have about Merrick Bank and their products:
What credit score is needed for Merrick Bank?
Merrick Bank does not disclose specific minimum credit scores. They offer products to those with fair credit or no established credit. Approved scores can be in the 500s or 600s. Fixed personal loans require a minimum 640 FICO score.
How long does it take to get approved for Merrick Bank?
Many Merrick Bank credit card applications receive instant decisions. Personal loan approvals may take 1-2 business days. If approved, funds may be available the next day.
Does Merrick Bank do a hard inquiry on your credit?
Yes, you will experience a hard credit inquiry when applying for any Merrick Bank credit cards or personal loans. This could temporarily lower your credit scores.
Can you pay off a Merrick Bank card early?
Yes, Merrick Bank credit cards and personal loans allow early payoff with no penalty fees. You can pay off balances faster to save on interest charges.
How long is the 0% APR intro period for Merrick cards?
Merrick Bank credit cards do not offer intro 0% APR promotions. Their cards have ongoing variable interest rates. Personal loans have fixed rates for the full loan term.
What is the maximum credit limit for Merrick cards?
Credit limits on the Merrick Secured Visa can be as high as the security deposit, from $200 to $3,000. Unsecured card limits typically start at $300 to $1,000 but may increase later.
Can Merrick Bank sue you for defaulted debt?
Yes, Merrick Bank can take legal action through debt collection agencies for severely delinquent accounts or charge-offs. To avoid collections, maintain contact and pay at least the minimum each month.
The Bottom Line: Is Merrick Bank Recommended?
Merrick Bank is best for borrowers with poor credit or no credit history who want to establish good credit behaviors. Their credit cards and loans can help build credit through responsible use and on-time payments. However, interest rates are high.
We suggest considering Merrick Bank if you won’t qualify for low-APR credit cards from major issuers. Use their products to build credit, then upgrade to better rates once your score improves. Avoid maxing out cards and make payments on time.
For fair credit borrowers needing personal loans, Merrick Bank is a legitimate lender. Compare loan offers carefully and focus on the APR and fees. Their fixed rates make monthly payments predictable.
Overall, Merrick Bank is a decent option for credit building and personal loans, despite higher interest rates. We recommend researching all available options thoroughly before applying.
Faizan Ahmad is a financial analyst and writer who specializes in investments, banking, and corporate finance. He has over 7 years of experience working in the finance industry in various roles.
He leverages his strong financial modeling and data analysis skills to provide insightful commentary on business, markets, and economic trends.
At Ventures Money, Faizan covers topics including Credit Card Reviews, Loans, Insurance, and Mutual Funds in the banking sector. He provides in-depth analysis of the latest news and trends to help readers make smart investment decisions.
Outside of writing, Faizan enjoys following the stock market, rooting for his favorite sports teams, and spending time with his family.