Merrick Bank Credit Card
The Merrick Bank issues a Visa Card. Often this card is sent to you through a direct mailing. In other words you were mailed a credit card from Merrick Bank because your name was on a list they bought. And ‘all you have to do is activate your card’ to use it!
They offer both secured and unsecured cards. This can be very tempting to just go online and respond to a mailing about an unsecured credit card with a potential credit limit of $500. However stop and use some caution especially before you agree to any credit cards terms.
How It Works?
As we mentioned Merrick Bank is going to buy a list of ‘interested or qualified’ names. Next they are going to mail you a credit card. On the mailing it will say something like call a 800# or go online and enter you acceptance number.
This acceptance number means nothing! It is just a way for them to track which mailing lists are profitable and which are not. This card is designed for individuals with bad credit and the fees and costs for this offer are staggering!
There are high annual fees, and a high interest rate. In addition to this we see very negative customer service experiences from prior card holders. Further with the new lending legislation that Congress passed in response to the ‘predatory bad credit lending practices’ have put all unsecured bad credit cards out of business.
These new laws have tied the hands of unsecured credit cards for bad credit. Literally dozens of cards were withdrawn from the market overnight. These unsecured cards will help you build credit the quickest because you are spending money and paying money back that you just promised to payback.
Instead of with a secured credit card where you have opened a savings account with the credit card issuer and are extended a credit card with a limit equal to the amount of your deposit in the savings accounts. For example: if you deposit $500 your credit card will have a limit of $500.
This will report to the bureaus but will not be weighted as much as an unsecured card. However with bad credit cards there is the secured route or prepaid cards or have emerged in response to the new lending laws. These cards require you to first pay money upfront and then you can use your card for purchases.
They are real Visa or MasterCards’ and can be used online and over the phone. You can also rent a car or a hotel room with them. They will be covered under a zero liability policy – insuring your money in case you lose or misplace your card.
www.MerrickBank.com
In sum, we do not recommend the Merrick Bank Card – we feel there are much better options available. Additionally if you are wanting to raise a low FICO score you should look into removing the negative items from your credit reports.