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Merrick Bank Secured Credit Card review: A low-interest card for credit-builders

This card’s competitive variable APR could be enough to make it a top option for some credit-builders.

 /  10 min
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Snapshot

2.7

Bankrate rating
Info
Rating: 2.7 stars out of 5

Bottom line

This card’s competitive variable APR could be enough to make it a top option for some credit-builders.

  • Cost of membership
    Rating: 1 stars out of 5
    1 / 5
    Ease of building credit
    Rating: 3 stars out of 5
    3 / 5
    APR
    Rating: 1 stars out of 5
    1 / 5
    Features
    Rating: 1 stars out of 5
    1 / 5
No Credit History
Info
Recommended Credit

N/A

Intro offer

Info

Annual fee

Regular APR

Merrick Bank Secured Credit Card overview

If you’re new to credit, the Merrick Bank Secured Credit Card can help. It’s a no-frills card that comes with a competitive variable APR, making it a good low-interest credit card if you plan to carry a balance each month. And Merrick Bank’s online financial literacy portal comes with an impressive amount of free and easy-to-use content that can empower you to make great financial decisions.

Since it’s a secured credit card, you’ll need to put down a security deposit, which will be your credit limit and act as collateral in case you’re unable to pay off your balance. This isn’t the best fit if you can’t afford to tie up anywhere from $200 to $3,000 in funds, but with responsible use, the Merrick Bank Secured card can help you raise your credit score and open the door to more credit cards, including unsecured credit cards that can do more for you beyond helping grow your build credit.

  • Credit Card Cash Back

    Rewards

    • This card does not offer rewards, which is typical of secured cards.

    Expert Appraisal: Typical
    See our expert analysis

  • Credit Card Search

    Rates and fees

    • Annual fee: $36 the first year (billed $3 per month thereafter)
    • APR: 22.70 percent ongoing variable

    Expert Appraisal: Good
    See our expert analysis

  • Credit Fair

    Credit-building features

    • Free FICO credit monthly scorecard 
    • Reports to the three major credit bureaus
    • Periodic reviews for credit line increase 

    Expert Appraisal: Good
    See our expert analysis

  • Congrats

    Other cardholder perks

    • Mastercard® benefits

    Expert Appraisal: Unimpressive
    See our expert analysis

Merrick Bank Secured pros and cons

Pros

  • Checkmark

    This card's low variable interest rate can help in case you’re unable to pay your bill in full.

  • Checkmark

    By adding money to your security deposit, you can increase your credit line and lower your credit utilization ratio.

  • Checkmark

    You have access to free financial education.

Cons

  • With upfront costs for a security deposit, you'll have to tie up some of your funds.

  • This card charges an annual fee, which you typically won’t find with rival cards.

Why you might want the Merrick Bank Secured

The Merrick Bank Secured card can help credit-builders improve their score with features like complimentary FICO score reports and its low interest rate. 

Rewards: No rewards means you can focus on building credit

This card also doesn’t earn rewards, which can be distracting if you are trying to keep a low balance to build good credit. A no-rewards card allows you to focus on developing healthy credit habits. A good credit score can lead to cards that come with enhanced features like sign-up bonuses, cash back rewards and intro APR offers.

Credit-building features: Access to free financial tools

Merrick Bank Secured comes with standard credit-building tools like free monthly FICO score reports and a chance for a higher credit limit with periodic reviews. It also reports to all three credit bureaus to help track your progress.

However, this card also has standout financial literacy tools, including articles, videos and Money Sense learning modules. This financial education covers a variety of topics. Depending on your financial goals, you can learn how to pay off debt, buy a car, save for retirement and more. All this is free and easily found on Merrick Bank’s website.

Rates and fees: Competitive interest rates

The Merrick Bank Secured card charges an annual fee of $36. This is charged in one lump sum for your first year, but after your first year, it’s broken into monthly payments of $3. For a lot of people, having the fee broken up into easily manageable portions can be helpful, as it can save you from having a surprise fee one month that throws your budget off track.

While not many credit-building cards charge an annual fee, the Merrick Secured card’s low variable APR could still make it worthwhile. Its APR is lower than competitor cards, which typically have high interest rates. 

Credit card Variable APR
OpenSky® Secured Visa® Credit Card 25.64% (variable)
Merrick Bank Secured Credit Card 22.70% Variable
Petal® 1 “No Annual Fee” Visa® Credit Card 25.24% - 34.74% Variable
Self – Credit Builder Account with Secured Visa® Credit Card 28.74% (Variable)
Discover it® Secured Credit Card 28.24% Variable APR

Here’s a look at how much more it would cost to carry a credit card with no annual fee but one with a higher variable APR:

Interest rate (APR) 22.70% Variable 30.74% (Variable)
Total balance $1,000 $1,000
Minimum payment $100 $100
Time to pay off 12 months 12 months
Total interest paid $117 $165
Annual fee $36 0
Total cost $153 $165
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Bankrate Insight

If you’re new to credit and don’t have a history of late payments or credit card defaults, you may have access to a number of additional credit cards that come with better features. Check out our best credit cards for no credit to learn more and to make sure you’re getting the right credit card for your credit-building journey.

Why you might want a different credit-building card

Merrick Bank Secured has plenty of terrific credit-building benefits, but you won't find substantial perks beyond that.

Perks: Little to no added benefit

Since the Merrick Bank Secured is a Mastercard, cardholders can usually enjoy some basic benefits like $0 fraud liability and theft protection. However, since this is a standard Mastercard, even these benefits are lackluster. Plus, since it's not a rewards card, this card's long-term value is limited. 

How the Merrick Bank Secured compares to other credit-building cards

The Merrick Bank Secured card is a solid pick, thanks mainly to its low APR. Even if you were hoping for an unsecured credit card, this card is worth considering if you don’t think you can pay your monthly credit card balances in full. But if you don’t plan on using a credit card often and can keep your balance paid off each month, the Merrick Bank Secured card may not be the best fit for you. Here’s a look at two credit-building alternatives with higher APRs but charge no annual fee and offer rewards.

Image of Merrick Bank Secured Credit Card
Bankrate Score
Apply now Lock
on Merrick Bank's secure site

Annual fee

$36 for first year. Billed $3 per month thereafter

Intro offer

N/A

Rewards rate

N/A

Recommended Credit Score

No Credit History
Info
Image of Discover it® Secured Credit Card
Bankrate Score
See Rates & Fees , Terms Apply
Apply now Lock
on Discover's secure site

Annual fee

$0

Intro offer

Cashback Match™
Info

Rewards rate

1% - 2%
Info

Recommended Credit Score

No Credit History
Info
Image of Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

Annual fee

$0

Intro offer

N/A

Rewards rate

1% - 1.5%
Info

Recommended Credit Score

No Credit History
Info

Best cards to pair with the Merrick Bank Secured Credit Card

Learning how to use multiple credit cards can take some time. Since this is a credit-building card, it’s a good idea to avoid trying to pair this with other credit cards. Instead, practice good credit habits with just one card: Make on-time payments and keep your credit utilization to a minimum since these are the two biggest factors that can impact your credit score. Once you’ve grown your credit score, you’ll be ready to choose a new credit card. You should apply for an unsecured credit card that fits your new credit score and offers better features and benefits.

Who is the Merrick Bank Secured right for?

Anyone looking to build up their credit and develop positive credit habits can benefit from this card. Also, people who prefer a low-interest card can use this card if they have trouble paying their balance in full. 

Bankrate’s Take — Is the Merrick Bank Secured worth it?

Yes, this is a solid option for building credit, especially if you are working on your score and struggle to qualify for unsecured credit cards. But even if you’re new to credit or have fair credit, this card may still make sense if you are like a lot of people who tend to carry a credit card balance.

Despite the card’s annual fee, the variable APR is one of the best available rates around, and you could end up saving more money with a low-interest secured card like the Merrick Bank Secured card than you would with a no-annual-fee credit card that comes with sky-high interest rates.

How we rated this card

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Data points analyzed
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250+
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Credit Card Reviews
40+
Perks evaluated

Our proprietary card rating system takes into account a mix of factors when scoring credit cards for students and people building credit, including each card’s cost, APR, credit-building tools and more.

We analyzed over 50 of the most popular cards designed for students and people with no credit history, bad credit or a fair credit score and scored each based on where its key features stood in relation to others in its category. 

Here are some of the key factors that gave this card its score: 

Written by
Re'Dreyona Walker
Associate Editor, Credit Cards

Re’Dreyona Walker is an editor for Bankrate and CreditCards.com, focusing on product guides and reviews. As a personal finance expert, she is dedicated to providing honest product reviews as well as in-depth, comprehensive guides to assist readers in building credit and finding the best credit cards for their needs.

Edited by Senior Editor, Credit Cards

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