When do I pay my Merrick Bank Classic Secured Card security deposit?

You can use a secured credit card to make purchases in the same way you would use a regular credit card. The only major difference is the security deposit that you need to put down when you open an account. The minimum deposit required is usually $200-$300, which serves as your credit limit. You may also be able to add more money to the deposit later on, to increase your credit line.... read full answer

Here’s how secured credit cards work:

Secured cards look just like any other credit card. Swiping or dipping your card in a merchant’s payment terminal is exactly the same. And secured credit cards are accepted anywhere that takes Mastercard, Visa, Discover or American Express, depending on which network your card is on.

The keys to using a secured credit card, as with any credit card, are to spend within your means and to pay your bill by the due date every month. That will help you build or rebuild your credit as safely and inexpensively as possible. Using only a portion of your credit limit and always paying your monthly bill in full are good habits, too.

Steps to get and use a secured credit card:

1. Compare secured credit card offers to find a card with a low annual fee, and confirm you meet the approval requirements.
2. Open a checking account, if you don’t already have one. Many secured credit cards require applicants to have a bank account.
3. Submit your application and your $200 to $300+ refundable security deposit. Typically, you won’t have to place the deposit until after you’re approved. But sometimes, you will have to do it when you apply (they won’t take the money if you’re denied).
4. Set up automatic payments from your bank account, so you never miss a due date.
5. Make purchases with your secured credit card anywhere that accepts your card’s network. But you don’t even have to use it for purchases to build your credit. Just having the account open and in good standing helps your credit score.
6. Try to make sure the balance reported on your monthly statements is less than 30% of your credit limit.
7. Pay at least the minimum amount required by the due date every month. That will keep improving your credit score. And you can avoid interest by paying your full balance.
8. Keep track of your credit card statements and your credit reports to make sure there are no errors. Report any mistakes that you find.

Learning how to use a secured credit card is easy. Learning how to use a secured credit card responsibly is a bit harder. But as long as you pay your bills by the due date, you should see your credit score improve before long.

Upon getting approved, you will receive detailed instructions on how to pay your Merrick Bank Secured Card initial deposit.

You will need to do it online and the amount will be debited from your bank account. Your initial credit line will be equal to your $200 - $3,000 deposit.

Yes, secured credit cards are worth it if you have limited or bad credit, want to build credit and can afford to put up a security deposit. They often have $0 annual fees, rewards and high approval odds, and secured credit card can be a great option to help you improve your credit score if you pay the bills on time.... read full answer

When a Secured Credit Card Is Worth It

• When you have limited or bad credit. Secured credit cards are good for people with bad or limited credit because they are easy to get, thanks to the collateral requirement that reduces the risk for the issuer. Some secured cards don’t even require a credit check when you apply. On the other hand, people with higher credit scores can get cards with no deposit requirement, better rewards and/or lower interest rates.
• When you are looking to build credit. The primary purpose of a secured credit card is to build credit. If that is your main objective and you want an easy credit card to get, these cards are much more cost-effective than unsecured alternatives for bad credit.
• When you can afford the security deposit. A secured card requires a security deposit, which is usually a minimum of $200 to $300, to open the account. The amount of this deposit usually becomes your credit limit. You won’t have access to your deposit again until you close the account with a $0 balance or upgrade to an unsecured card.
• When you know you can pay on time. Making late payments hurts your credit score, which defeats the purpose of using a secured card. Ideally, you should not only pay on time each month, but also pay your balance in full. That way, you will build your credit as efficiently as possible while avoiding interest charges.

It’s worth noting that there are also unsecured credit cards for bad credit, and it’s fair to wonder whether secured cards are worth it compared to them. In general, these unsecured cards often have expensive, non-refundable annual fees (while secured cards often have $0 annual fees), and their APRs tend to be higher because of the lack of collateral. However, some unsecured credit cards for people with no credit may be better than their secured card alternatives.