The biggest difference between a secured and unsecured credit card is, for a secured card you have to deposit a particular amount which can be kept as cash collateral. Secured credit cards are especially useful for consumers with poor credit or no credit score at all. This card has a pretty good interest rate and that is always nice to find in a secured card. Moreover, Merrick Bank reports to all the three major credit bureaus regularly and that is good thing for your credit score. If you manage your account responsibly, chances are high that you will get a decent credit score. Of course, the flip side is also true. If you will carry balance and don’t pay your bills on time than you credit score will drop even lower. To improve your score, you will have to pay all of your bills on time. Not only could your credit card bill, even a late payment of your cell phone bill get reported to credit bureaus. If you enrol at their card holder centre, you will get to see the FICO score that Merrick Bank uses to manage your account. Your account can be managed online via Cardholder Centre.
You can choose your credit limit. The minimum credit limit of this card is $200 and the maximum can go up to $3,000. Your security deposit does not earn interest. Your application will not be processed until you pay the security deposit in full. They give a period of 80 days to fund the deposit account before they consider your application withdrawn. You cannot graduate for a regular credit card and it is not possible to add funds to increase credit limit. Merrick Bank has an easy approval procedure for their secure product. But people with a bankruptcy on their credit report will not get the approval.
Rate and Fees: –
- Annual Fee: – It is $36 and deducted from your credit limit. After completion of first year you are billed $3 per month.
- Additional Card Fee: – It is $12 per year. After the first year, you are billed $1 per month.
- APR: – Annual Percentage Rate is 17.45% (variable).
- Balance Transfer Fee: – Not Applicable
- APR for Cash Advances: – 22.45% (variable)
- Foreign Transaction Fee: – 2% per transaction
- Late Payment or Returned Payment Fee: – Up to $35