Question regarding Merrick Bank Pre-selected Approved Credit Line

[saggyg]

Good afternoon everyone,

The other day I received a Merrick Bank Pre-selected Approved Credit Line for $1100 with the double your credit line in 7 months to $2200 with on time payments.

Terms: No annual fee, no account setup fees, no monthly service fee, no penalty rates, no over limit fee and free FICO score monthly. Interest rate 23.45%, which I really don't care about since I will be paying it off every month or keeping a super low balance.

I have looked around on here and haven't really seen anything negative about them.

Does this mean they have looked at my credit reports already and decided I am a good risk?
Anyone have any comments regarding Merrick, good or bad?
Should I wait and just apply to Capital One when I am ready? I really wanted a Venture card for travel points.

Currently my scores range between 629 and 708, I own my home and car, and between a store card and being an AU on another, the credit limit is over $11,000.

Any info would be helpful

[Shokk]

I received the same letter from them roughly 8 months ago. I was worried as well because pre-approved doesn't always mean you're approved.  i wasn't worried about the INQ, so I went for it.  Approved!

I even paid one payment a day or 2 late by mistake.  No late payment fee AND still got my automatic CLI after 7 months.  I think the rate is around 24%, but as rebuilders, that's to be expected.  I have zero complaints with Merrick.  And you get a free FICO score each month as well. Its bankcard adjusted, but close enough.  Definitely a FICO.  Think the only requirement is paperless billing.

So if you don't mind the INQ, I'd say go for it.

Edit to add:  My scores were lower than yours.  Beginning limit was only $500, but still was approved.

[gdale6]

Pre selected does not mean you are approved for the card it just means at some point previously your profile fit the requirements for the card. If you have a mortgage and car payment I would not bother with a Merrick Bank card they are considered a sub prime lender. I would get in with a few CUs (local or national) and get their credit cards and/or lines of credit. Your idea of the Cap-1 Venture is a good one and even though Cap-1 gets a bad rap they are better on your report than Merrick.

[AvadaKedavra]

I have a Merrick bank card. They got me when I really needed a card to help rebuild. They've been great. Have no negative things to say about then. I started At a $500 limit and after 6 months got an auto CLI to $1000. 

[polno1234]

i have had their secured card for over a year. no problems at all.