Learn with Merrick Bank
Increase your financial knowledge with Merrick Bank and come learn with us.
Personal Credit
Personal finance, money management, getting out of debt, and credit help. Get the latest tips on the topics that affect your financial life the most.
Marriage, Children, and Family
Advice on managing money with your spouse and teaching financial lessons to your children.
Budgeting
Budgeting tips, inspiration, and success stories to help you stay on track.
Maintaining Good Credit
Maintaining a good credit score by making smart financial decisions leads the way to lower interest rates and borrowing money when you really need it.
Financial Word of the Day
Unsecured Credit Card
An unsecured credit card is the most common type of credit card. Unlike a secured credit card, it doesn’t require a security deposit for you to get the card. You can use the card to make purchases and then repay your issuer with monthly payments based on your card’s terms and conditions.
Credit Score
Your credit score is a 3-digit score calculated from the information in your credit reports. Your payment history and credit history are key components. Payment history shows if you have paid your creditors on time. Credit history shows how long you’ve had the accounts.
Minimum Payment
The lowest amount you need to pay on your credit card account each month to keep your account in good standing. This is shown on your monthly billing statement. You will continue to accrue interest on any balances on the account.
Variable Interest
An interest rate that can change based on an index, like the Prime Rate
Collateral
This is something you can secure a loan with. Collateral can be in the form of a cash security deposit, or it can be the object you’re using the loan for, like your car for an auto loan or your house for your mortgage.
Credit Line
Also known as credit limit, this is the highest amount of money that can be extended on a credit card account without paying down your balance.
Annual Percentage Rate (APR)
The annual interest rate lenders charge for letting you carry balances on your loans or credit cards.
Credit Report
A record of your credit history, including your payment behavior, your credit inquiries, and what past and present accounts you have. Lenders use these to determine if they’ll extend you credit and what terms you’ll have. Checking your credit report annually helps you manage your personal finances and fix any errors. As a consumer, you may request a free copy of your credit report from each of the three national credit bureaus every twelve months at annualcreditreport.com.
Payment History
A complete list of all of your credit accounts and the payment status for each account. This will include if you’ve made all of your payments on time and which ones, if any, you’ve missed or paid late. This information is stored at the credit bureaus.
Credit Utilization Ratio
A percentage of the total amount credit you’re using. To calculate it, take the balances on your revolving credit accounts, such as credit cards, and divide that by the total amount of credit lines on your accounts. Then multiply that value by 100 to get your utilization percentage.
EMV Chip
A computerized chip on your credit card that lets you make physical transactions more securely. You typically insert the card with the chip when paying instead of swiping your card on the magnetic strip.
Credit Inquiry
When you’ve applied for credit, a lender will pull your credit report and review it. When they pull your credit information, it’s considered a hard inquiry and that will become visible on your credit report.
Payment Due Date
This is the day your credit card payment is due, which is shown on your monthly billing statement. After this day, you may be charged a late fee. And interest will continue to accrue on your balance.