Merrick Bank Credit Card - Have You Gotten a Mailing From Them?

Published: 10th January 2012
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The Merrick Bank Credit Card is an unsecured offer that will give you an initial credit limit of $500. There is easy approval as it is designed for those with a less than perfect credit history.

It will be issued as a Visa card through the FDIC insured Merrick Bank. It can be used to make purchases online and on the phone. Your card will also be insured with Visa's zero liability policy which means that if your card is lost or stolen your money is still protected. It will report monthly to all three credit bureaus and if used responsibly can be an effective method to build a positive payment history.

How Does The Process Work?

The Merick Bank is one of the many bad credit lenders. There has been a dramatic change in sub prime credit in the past four years. It is a cause of the credit crisis and new government regulation that sets a cap on fees and interest rates.

They will purchase a mailing list were you have been identified as a potential consumer, and then you will get a mailing from them with the card offer. In other words this card is marketed through direct mail also know as junk mail.

We aren't sure exactly where they are buying their lists from however we are fairly confident that at some point one or all three of the major bureaus sold them your information. Yes, the major credit agencies do sell your information to private business so they can send you junk mail.

In your mailing you will already have the card and it will likely already be an issued card. In other words rather than being a piece of plastic as with most mailings the card will actually be a real Visa card and all you have to do is activate the card and it will already say you are pre-approved.

You will have to go online or call an 800 number to activate it and then you can use your Visa for purchases. While in the past this was an unsecured offer meaning you were given a card with a limit and were able to spend money on the promise you would make payments.

We believe now they are only issuing secured cards. We believe this because we have heard it from their customers and because of the new regulations. This is how the sub prime unsecured lending market fell apart; the mortgage crisis started.

Literally overnight cards were being taken off the market which was result of the banks being under financial strain. As time passed and banks especially the bigger banks started to lend again even to those with mistakes in the past the government responded.

The government regulations made unsecured card for people with bad credit illegal and an unviable business plan. These regulations set caps on the interest rates and fees the card companies could charge you. While this sounds great in theory it has resulted in the elimination of your choice to pay some extra fees and get a line of credit.

We recently have seen a modified version of an unsecure card come to the market. However the require a lot more fees and charge an unreal 49% APR. In other words the cards that can offer you some credit are ten times worse than before these new laws were passed. We aren't sure how this interest rate is legal and would expect some new regulations.


For more about the Merrick Bank Credit Card or for more information about credit cards for bad credit visit us.

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