How to Cancel a Merrick Bank Credit Card Without Hurting Your Credit

Merrick Bank issues secured and unsecured credit cards to people rebuilding credit. Many use Merrick Bank after bankruptcy or financial hardship to improve their credit history.

Sometimes you need to cancel your Merrick Bank card. You might struggle with payments. Or the card may not provide the benefits you expected.

Canceling is your choice. But you need to understand how it affects your credit score first.

Call or Write to Cancel Your Merrick Bank Card

Merrick Bank makes cancellation straightforward. You have two options.

Call Merrick Bank customer service at 1-800-204-5936. Ask the representative to cancel your card.

Prefer written communication? Send your cancellation request to:

Merrick Bank Customer Service
P.O. Box 9201
Old Bethpage, NY 11804-9001

Merrick Bank will process your request and cancel your card. You cannot make new purchases after cancellation.

Pay Your Balance Before Getting Your Deposit Back

Canceling your card does not erase your debt. You still owe any outstanding balance.

Interest continues to accrue until you pay in full. Make a plan to eliminate that balance quickly.

Many Merrick Bank cards are secured. You provided a deposit when you opened the account. Merrick Bank refunds your security deposit only after you pay your balance to zero.

Struggling with Merrick Bank debt? Our partner Cambridge Credit Counseling can help you create a manageable payment plan.

How Canceling Affects Your Credit Score

Closing a credit card impacts your credit in two important ways.

Your Credit Utilization Rate Increases

Credit utilization compares your outstanding debt to your available credit. Lower utilization means better credit scores.

When you cancel a card, you lose that available credit. Your utilization ratio jumps higher even if your debt stays the same.

Your Credit History Gets Shorter

Credit history length matters for your score. Closing accounts reduces your positive payment history.

Newer credit users get hurt the most. You need every positive account you can keep.

Real Example: How Cancellation Hurts Credit

Bridget has two credit cards. Her Merrick Bank card has a $1,000 limit and $0 balance. Her other card is maxed at $2,500.

Before canceling: Her utilization is 71.42% ($2,500 divided by $3,500 total credit).

After canceling her Merrick card: Her utilization jumps to 100% ($2,500 divided by $2,500).

Bridget only has one year of credit history. Closing the Merrick account removes half her positive history. Her credit score drops 100 points, from 600 to 500.

Keep Cards Open Even If You Rarely Use Them

Keeping credit cards open helps your score. You maintain lower utilization and longer history.

But creditors may close inactive accounts. Protect your account by using it occasionally.

Charge something small every three months. Pay it off immediately. Your creditor sees activity and keeps the account open.

You keep the credit line and positive history. Your utilization stays low.

Consider Alternatives Before You Cancel

Need your security deposit back? Explore other options first.

Can you pay down other debt instead? Focus on high-interest balances while keeping your Merrick card open.

Struggling with multiple payments? A debt management plan consolidates payments and may lower interest rates. Cambridge Credit Counseling offers free consultations to review your options.

Already decided to cancel? Pay your balance to zero first. Receive your deposit without credit score damage from high utilization.

What Happens After You Cancel

Merrick Bank processes your cancellation within a few business days. You receive confirmation by mail.

Your card stops working immediately. Destroy the physical card to prevent fraud.

Keep making payments until your balance reaches zero. Check your final statement carefully.

Merrick Bank sends your security deposit by check. Wait 4-6 weeks after paying your final balance.

The closed account stays on your credit report for up to 10 years. Positive history remains visible to lenders during that time.

Rebuild Credit After Canceling Your Card

Canceling hurt your score. You need to rebuild quickly.

Keep your remaining cards active. Pay every bill on time. Payment history accounts for 35% of your credit score.

Pay down balances to reduce utilization. Aim for under 30% on each card.

Consider a credit builder account. You make small monthly payments that get reported to credit bureaus. Your score improves steadily over time.

Avoid opening multiple new accounts quickly. Each application creates a hard inquiry that temporarily lowers your score.