Merrick Bank Review

Online-only bank offers credit cards, loans, and CDs

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By EMILY GUY BIRKEN

Updated Jul 20, 2020
TABLE OF CONTENTS

 Pros Explained
 Cons Explained
 Who Is Merrick Bank Best For?
 What Does Merrick Bank Offer?
 Merrick Bank Customer Service
 How to Bank With Merrick Bank
 Verdict
 Methodology

Based in Utah, online-only Merrick Bank was founded in 1997 as a subsidiary of

the New York–based financial services firm CardWorks. Merrick Bank is not a
traditional banking institution and offers no checking, savings, or money market
accounts. Instead, the institution focuses on credit cards, loans, and certificates
of deposit (CDs) and is geared toward customers with lower credit scores. This
in-depth review can help you determine if Merrick Bank’s products will work for
you.

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Pros

 High CD yields
 Lower-than-average APR on secured and unsecured credit cards
 Specializes in boat and RV financing
 Focuses on helping customers with lower credit scores

Cons

 $25,000 minimum CD deposit

  Confusing credit card fees
 Loan rates not listed online
 No typical deposit accounts

Pros Explained
 High CD yields – Merrick Bank offers CDs in terms ranging from six
months to two years, with annual percentage yields (APYs) that range from
0.65% to 0.85%. These rates outpace the national average, which range
from 0.16% for a six-month term to 0.32% for a two-year term (as of July 6,
2020).1
 Lower-than-average APR on secured and unsecured credit cards –
The secured credit card, which is Merrick Bank’s most popular product,
has an annual percentage rate (APR) of 17.45% for card purchases (as of
July 10, 2020), which is below the national average of 19.29% APR on
secured credit cards.2 The unsecured card has an APR that ranges from
19.45% to 27.70% (as of July 1, 2020), compared with the national
average of 24.59%.2
 Specializes in boat and RV financing – While Merrick Bank also offers
personal loans, the institution is known for its boat, RV, and horse trailer
loans. This makes it an attractive choice for borrowers who might
otherwise have trouble finding a lender, either because of the specificity of
their purchase or their credit history. Merrick Bank works with thousands of
approved dealers across the United States.
 Focuses on helping customers with lower credit scores – Though
Merrick Bank does not accept all comers regardless of credit history, it is
very open to helping those with either no credit record or a poor credit
record build their credit history.

Cons Explained
 $25,000 minimum CD deposit – The impressive yields for Merrick Bank
CDs come with a cost—you can only open one with a $25,000 minimum
deposit, placing it out of reach for the average customer.
 Confusing credit card fees – Setup and maintenance fees for the
secured credit card are ―removed‖ from your credit limit, which can be
somewhat confusing. In addition, the unsecured card has an annual fee
and a setup fee that range from $0 to $72 and $0 to $75, respectively, but
the website does not clarify how your exact fee amount is calculated.
There is also a $0 to $12 additional card fee on the unsecured card.
 Loan rates not listed online – Neither the recreational vehicle loans nor
the personal loans have their rates listed on the Merrick Bank website,
 making it more difficult to do an apples-to-apples comparison with other
lenders.
 No typical deposit accounts – Merrick Bank is not a traditional bank, and
you cannot open a checking account, savings account, or money market
account with it. This makes Merrick Bank a poor choice for any customer
looking for a one-stop shop.

Who Is Merrick Bank Best For?

Merrick Bank is going to work best for customers who are looking to get a credit
card or loan despite a lackluster credit history. It will especially appeal to
customers who:

 Want to build their credit history

 Do not need to pair their general banking needs with their lender or credit
card issuer
 Are comfortable with an online-only banking experience

What Does Merrick Bank Offer?

This institution only offers a few of the products and services you might expect
from a bank. These include:

 CDs
 Credit cards
 Banking experience
 Customer service

CDs
Merrick Bank’s CDs offer a higher-than-usual rate compared with the national
average for CDs. However, the minimum deposit to open a CD is a steep
$25,000, which may put this product out of reach for many potential customers.

You can purchase a CD in any one of the following terms:

MERRICK BANK CD RATES

Term APY
Six Months 0.65%
One Year 0.75%
18 Months 0.80%
Two Years 0.85%
(As of July 10, 2020)
Merrick Bank also levies a fairly stiff penalty for early withdrawal. CDs with a term
of 364 days or less will pay a penalty equal to 1% of the account balance or
seven days’ interest, whichever is greater. CDs with a term of 365 days to 729
days have an early withdrawal penalty equal to 2% of the account balance or
seven days’ interest, whichever is greater. And CDs with a term of 730 days or
more have a penalty equal to 3% of the account balance or seven days’ interest,
whichever is greater.

Credit Cards
Customers have access to two credit cards through Merrick Bank: the Platinum
Visa and the Secured Visa.

 Platinum Visa – The Platinum Visa was created to help you establish or
rebuild your credit. This card’s big claim to fame is the fact that Merrick
Bank will regularly review your account to increase your credit line.
 Secured Visa – The secured card only has a $200 minimum deposit,
which is similar to other secured cards on the market. You also have the
option to add to your deposit over time, up to $3,000, thereby giving you
more purchasing power.

Merrick Bank Customer Service

Merrick Bank boasts only one physical location in the country, its corporate
headquarters in South Jordan, Utah. However, you can reach a customer service
agent by phone, although it’s unclear as to what hours the phones are staffed.

Merrick Bank also has a mobile app on which you can make payments, contact
customer service, check your balance, manage account notifications, access
your FICO score once per month, and even freeze your card in case of loss or
theft. However, the app is not highly rated on the Apple Store, with an average
rating of 2.7 stars out of five.3 Google Play users appear to like the app better,
rating it 4.1 stars out of five.4

How to Bank With Merrick Bank

Potential credit card customers can see if they are prequalified for the Platinum
Visa online. If you are not, you can apply for the Secured Visa online.

Borrowers can apply for a loan online, and customers who wish to purchase a
CD can do so online as well. Customers looking for a boat, an RV, or a horse
trailer loan may see if they qualify and apply at one of the thousands of
participating dealers across the country.

Once you have set up your credit card, loan, or CD, you can access information
about your account either online or through the smartphone app.
Verdict
Customers with less-than-perfect credit may find that Merrick Bank’s offerings fit
their needs quite well. The bank’s credit cards and loans are created with credit-
building in mind, and these products are available even to many customers who
might otherwise be shut out of borrowing. In addition, the impressive yields on
CDs may tempt well-heeled customers to grow their money with Merrick Bank.

However, the costs of Merrick Bank’s offerings are both unclear and potentially
higher than you might find elsewhere, even for those with a spotty credit history.
Add in that Merrick offers no other deposit accounts and has a high minimum
deposit requirement for CDs, and this bank may not be a good fit, even for the
demographic that Merrick specifically courts. You may be able to find less
expensive and more-convenient credit cards and loans elsewhere, even if you
don’t have great credit.

Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive
reviews of banks. We collected over 20 data points across more than 80 banks—
including products available, interest rates, fees, and accessibility—to ensure
that our content helps users make the right decision for their savings and banking
needs.