Sarah Edwards | May 18, 2023
Edited by Hannah Locklear
Summary: Merrick Bank is a popular credit card company that issues secured and unsecured credit cards to people trying to rebuild their credit. Sometimes, people choose to cancel their Merrick Bank credit card for personal reasons. SoloSuit explains the process for canceling a Merrick Bank credit card and how it may impact your credit.
Merrick Bank offers secured and unsecured credit cards to people with poor credit who want to increase their credit scores. People recovering from bankruptcy or other adverse financial events often use Merrick Bank to help them bounce back and improve their credit history.
While signing up for a Merrick Bank credit card can be beneficial, people sometimes have trouble keeping up with their payments as they intended. In other cases, they may find that the credit card doesn’t provide the advantages they hoped for. Whatever the reason, a current client may cancel their credit card with Merrick Bank.
Is a collection agency pursuing you for an old Merrick Bank balance? Make them validate the debt with SoloSuit’s Debt Validation Letter.
Canceling a credit card with Merrick Bank is pretty simple. You’ll need to call Merrick Bank’s customer service line at 1-800-204-5936 and ask the company to cancel your card. If you’d prefer to avoid speaking with a representative, you can send a written request to Merrick Bank at the following address:
Merrick Bank Customer Service
P.O. Box 9201
Old Bethpage, NY 11804-9001
Once Merrick Bank processes your request, they’ll cancel your card. After the cancellation, you’ll no longer be able to use your card for purchases.
However, you aren't off the hook if you still owe a balance to Merrick Bank. You’ll need to repay Merrick Bank the amount you owe. Your balance will continue to accrue interest charges until you fully repay it.
Several of Merrick Bank’s credit cards are secured, which means that you provided Merrick Bank with a monetary deposit when you first applied for the card. Merrick Bank will refund your security deposit once you fully repay your outstanding balance.
Is Merrick Bank suing you for unpaid debt? Watch this video to find out how to respond to a Merrick Bank debt lawsuit:
When you cancel a credit card, it affects your credit history in two ways. First, it can increase your credit utilization rate. Your credit utilization rate is a ratio that identifies the amount of outstanding debt you have compared to your available credit. The lower your credit utilization, the better your credit score.
Second, if you don’t have much credit history, closing your Merrick Bank credit card can make matters worse. You’ll remove a positive account that shows you can keep up with your monthly payments.
Let’s consider an example.
Example: Bridget has a credit card with Merrick Bank with a credit line of $1,000. She doesn’t use the card, which currently has a $0 balance. Bridget cancels the card to retrieve her $750 security deposit on the account. Bridget has one other credit card that she maxed out with a $2,500 balance. Bridget has only one year of credit history with both cards. Before canceling her Merrick Bank account, Bridget’s credit utilization was 71.42%, or $2,500/($2,500 + $1,000). After canceling her Merrick Bank account, Bridget’s credit utilization ratio increases to 100%, or $2,500/$2,500. Since she doesn’t have much credit history, closing the Merrick Bank account has an adverse impact. Bridget’s credit score drops by 100 points, from 600 to 500.
It’s usually best to keep credit cards open, even if you rarely use them. Doing so improves your credit utilization rate and helps you build a solid credit history. However, creditors sometimes close your account if you aren’t using the card.
If you’re working on building your credit history and score, it’s a good practice to use your card at least once every three months, even if you’re not making major purchases and trying to keep your credit utilization low. Doing so will signal to your creditors that you still need them and that the card isn’t in the bottom of your drawer (even if it is).
You may want to cancel your Merrick Bank credit card, especially if the card has a security deposit you need for other expenses. However, be aware that you must have a $0 balance to receive a refund. In addition, canceling your card can harm your credit score, making it harder to qualify for financing in the future.
Did you receive a Court Summons from Merrick Bank? Settle your debt before going to court with the help of SoloSettle.
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