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OpenSky Secured Credit Card Review

OpenSky Secured Credit Card Review

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated May 11, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

The OpenSky® Secured Visa® Credit Card — issued by Capital Bank — is a no-frills card that doesn’t require a credit check when you apply. It’s a secured credit card, meaning you must submit a security deposit to the issuer equal to your credit limit. In other respects, it works the same as an unsecured credit card.

However, the OpenSky® Secured Visa® Credit Card charges a $35 annual fee, but if you’d like to avoid a credit check when applying for a new credit card, the fee may be worth it.

  • Free Credit Bureau Reporting

  • $200 - $3,000 Credit Line*

  • 17.39% (variable)*

Highlights
  • LIMITED TIME OFFER: 0% introductory APR on all purchases for the first six months
  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
  • We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search “OpenSky Card” in Facebook.)
  • *View our Cardholder Agreement located at the bottom of the application page for details of the card

See additional details for OpenSky® Secured Visa® Credit Card

More Info

OpenSky® Secured Visa® Credit Card pros

No credit check. If you have bad credit and are worried that it might stop you from getting approved for even a secured credit card, the OpenSky® Secured Visa® Credit Card could be your best option. It doesn’t require a credit check when you apply, so your bad credit won’t be a factor.

What’s a bad credit score? According to FICO, the scoring method most commonly used by lenders, a credit score of less than 580 is considered poor.

Know that when applying for the OpenSky® Secured Visa® Credit Card, you will have to provide the following financial information:

  • Annual income
  • Monthly housing payment
  • Housing payment type

Read: How to build credit with a secured card

Reports to the credit bureaus. Your payment history will be reported to Equifax, Experian and TransUnion, meaning this is a good card for building credit history.

Intro APR. Secured credit cards don’t typically provide 0% intro APR periods, but the OpenSky® Secured Visa® Credit Card is now offering a unique benefit to assist customers dealing with financial strain due to the coronavirus. New cardholders now get 0% APR for first 6 months on purchases. After, an interest rate of 17.39% (variable) applies.

Reasonable APR. The OpenSky® Secured Visa® Credit Card’s interest rate is 17.39% (variable). Many secured credit cards have interest rates over 20%, so this is reasonable by comparison.

However, to avoid incurring interest charges, it’s smart to pay your card off in full each month.

$200 minimum security deposit. While some secured cards may require a minimum deposit as high as $500, the minimum deposit for the OpenSky® Secured Visa® Credit Card is $200. The maximum deposit is $3,000. Your options for paying the deposit include:

  • With a debit card
  • Through Western Union
  • By mailing a check or money order

You can also request a credit limit increase through your online account. If approved, you’ll receive a letter with instructions on how to submit the additional deposit amount.

Read: Best low-interest credit cards

OpenSky® Secured Visa® Credit Card cons

Annual fee. The OpenSky® Secured Visa® Credit Card charges a $35 annual fee. If you’d prefer a secured card with no annual fee (but one that does require a credit check), check out the Discover it® Secured.

Take note that the annual fee will reduce your available credit until paid. For example, if you have an initial $200 credit limit, the $35 annual fee will reduce your available credit to $165.

You won’t be able to graduate to an unsecured card. With some secured cards, there’s a chance to transition to an unsecured card with the same issuer and get your deposit back after demonstrating responsible credit card usage. With the OpenSky® Secured Visa® Credit Card, there’s no such option. To get your deposit refunded, you must pay the card off in full and close the account. However, once your credit score dramatically improves with the card, you should be able to apply for an unsecured card with a different issuer.

Foreign transaction fee. If you happen to be traveling outside the United States, be aware that this credit card charges 3% of each Transaction in U.S. dollars.

Alternative cards for building good credit

Discover it® Secured and the AvantCard Credit Card

If you’re willing to undergo a credit check, there are cards that might fit your needs better than the OpenSky® Secured Visa® Credit Card. We’ll look at two — one secured and one unsecured.

 OpenSky® Secured Visa® Credit CardDiscover it® SecuredAvantCard Credit Card
Annual fee$35$0$39
Minimum deposit$200$200No deposit
RewardsNo rewards2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically.No Rewards
Sign-up bonusNo bonusFor new cardmembers, Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match. No bonus
Regular purchase APR17.39% (variable)22.99% variable25.99% variable

  • 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically

  • Credit line will equal your security deposit of $200 or more*

  • No annual fee, no late fee on your first late payment. No penalty APR*

Highlights
  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • It's a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can't help you build a credit history.
  • Establish your credit line with your tax return by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.
  • Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score
  • INTRO OFFER: Unlimited Cashback Match. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • See Rates & Fees

See additional details for Discover it® Secured

More Info

  • Fast and easy application process

  • No deposit required and no penalty APR

  • 25.99% Variable

Highlights
  • Fast and easy application process
  • No deposit required
  • No hidden fees
  • No penalty APR
  • Report to all three major credit bureaus
  • Zero fraud liability for unauthorized charges
  • Avant branded credit products are issued by WebBank, member FDIC
  • Disclosure: If you are charged interest, the charge will be no less than $1.00

See additional details for AvantCard Credit Card

More Info

The Discover it® Secured is an excellent choice for applicants looking to rebuild their credit or those who have no credit history and need a good first credit card that earns cash back (it’s rare for secured cards to offer rewards). And after eight months, Discover will begin monthly reviews of your account to see if you’re eligible to graduate to an unsecured Discover it® chrome and have your deposit refunded. Note that Discover considers your behavior across cards and loans from all issuers when making this decision.

If you can’t afford $200 upfront for a deposit on either the OpenSky® Secured Visa® Credit Card or the Discover it® Secured, consider the AvantCard Credit Card. It’s an unsecured card (meaning no deposit is required) for applicants with fair/limited/bad/poor credit, and charges a $39 annual fee.

Unlike some other unsecured cards for bad credit, AvantCard Credit Card doesn’t hit cardholders with additional, unexpected fees and convoluted terms. It’s a good tool for building or rebuilding credit. Plus, you can check on the Avant website to see if you prequalify. Just be aware that this card is not available to residents of Colorado, Iowa, Vermont, West Virginia or Wisconsin.

Read: Best Credit Cards for Beginners

Is the OpenSky® Secured Visa® Credit Card a good card?

Depending on your situation, a card such as the Discover it® Secured might be better than the OpenSky® Secured Visa® Credit Card. The former charges no annual fee and offers cash back and regular account reviews to see if you’re eligible to get your deposit refunded. The latter charges a $35 annual fee and will refund the deposit only if your account is paid off and closed.

However, if you want to avoid a credit check in exchange for a small annual fee, the OpenSky® Secured Visa® Credit Card might be just what you’re looking for. It reports your payment history to the credit bureaus and provides an opportunity to demonstrate responsible credit behavior. In time, you can build a good credit score and apply for a card with rewards and benefits.


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