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What we think: If you’ve struggled to get approved for a secured card because of your credit history or lack of a bank account, the OpenSky Secured Visa card may be a decent card for you since there is no credit check or bank account required. It also comes with some cash-back rewards, which is uncommon for a secured card.
Cardholders can earn up to 10% cash back when shopping at select merchants.
You decide how much your credit limit will be by making a refundable security deposit between $200 and $3,000.
This secured Visa card is fairly competitive when compared to other secured credit cards on the market.
OpenSky reports to all three major credit bureaus, which can help you build a better credit history.
SUMMARY
The OpenSky® Secured Visa® Credit Card is a credit-building tool that can help you improve your credit history. As a secured credit card, it does require a deposit up front but doesn’t involve a credit check for approval. Responsible management of an OpenSky credit card account over time can help you improve your credit score and gain access to other credit offers.
You should carefully consider the pros and cons of any credit card before you apply. That’s true even if you’re in a situation where cards for bad credit or building credit are your main options. We’ve gathered the details on the OpenSky card to help you make an educated decision about applying for this card. Keep reading to discover:
The benefits of holding a card from OpenSky
What rates and fees you might pay
How to apply for this card if you decide it’s right for you
Earn up to 10% back. Does not require a bank account or credit check. Minimum $200 security deposit. $35 annual fee.
Is the OpenSky Secured Visa Credit Card worth it?
If you have a low credit score, or no credit history at all, the OpenSky Secured Visa card is an excellent option for you.
Because there are no credit checks involved in the application, this card is a solid choice for anyone looking for a credit card to build credit or establish a positive credit history. It’s also good to know that the card reports to the three major credit bureaus in the U.S. (Equifax, Experian, and TransUnion). However, while it can be your best tool for improving your credit, its nature as a secured Visa credit card does bring some limitations.
We’ve put together a list of major pros and cons to help you learn more about the OpenSky Secured Visa card at a glance:
Pros
There are no credit checks, which makes it one of only a handful of options for applicants with low or no credit
It reports to the three major credit bureaus in the U.S.
It offers a credit increase after 6 months, provided you use it responsibly and don’t miss any payments. Better yet, the increase comes without the need for an additional security deposit
Based on the amount you provide for the security deposit, your credit limit can be as high as $3,000
Flexible payment dates mean that you can choose when your monthly payment is due. This can help you avoid filling a specific day of the month with bills that are doing
It earns up to 10% cash back rewards when shopping at select merchants
Cons
The card requires a security deposit, the minimum amount being $200
The variable APR of 18.14% is on the high end of interest rates and can make carrying a balance from month to month costly
If you intend to travel outside of the United States or make online purchases from a foreign retailer, the card’s 3% foreign transaction fee makes it a poor option
Most of the benefits of the OpenSky secured credit card are related to building credit, but you do get some basic Visa cardholder perks too.
No credit check required
One major draw for this card for individuals with no credit or bad credit is that OpenSky doesn’t base approvals on your credit history.
This is a secured credit card, which means your credit limit is secured by a deposit you make when you open the account. Because the credit card company can use that deposit to recoup its losses if you fail to make payment, there isn’t as much risk involved for the card issuer. Therefore, it’s not as worried about your past credit performance.
When you apply for an OpenSky secured card, you’re asked for information such as your name, address and date of birth. You may also have to answer a question about your income level and provide a copy of your ID. But OpenSky doesn’t pull your credit report at all.
Reports to all three major credit bureaus
Once you are an OpenSky cardholder, however, your account status and payments are reported to all three major credit bureaus — TransUnion, Equifax and Experian.
This is an important consideration when shopping for a credit-building credit card because it ensures that your timely payments have the biggest possible positive impact.
Of course, this is only a benefit if you manage your account well and make all your payments on time. If you miss payments, you’ll risk negative items being reported, which can cause your credit score to drop.
You can set your own credit limit
Your security deposit determines your credit limit, so you have some say in how much it will be.
The minimum security deposit allowed by OpenSky is $200. The maximum security deposit is $3,000. This means your credit limit can be $200 to $3,000, depending on how much you’re willing to pay to open the card.
Note that your security deposit doesn’t just disappear forever. You get it back once your account is closed and your balance is paid in full. OpenSky notes that members typically receive their security deposit back between 4 and 8 weeks after closing their account and paying off any balances. However, if you close your account and don’t pay off your balances or you’re late making payments, OpenSky may use your security deposit to cover your balance.
Visa benefits
Because this is a Visa card, you get benefits that any Visa credit card would come with. That includes:
1
$0 fraud protection.
Visa’s fraud protection ensures you’re protected if fraudulent purchases are made using your card or card number. You won’t be on the hook for those charges as long as you report them.
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2
ID Navigator Identity Theft Protection.
This service keeps you informed of information that might indicate that you’re the victim of identity theft so you can act quickly to protect your information and accounts.
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3
Roadside assistance.
For a single fee when you call, you can get roadside assistance anywhere as a Visa cardholder. Assistance can include towing, jumpstarts, tire changes and other assistance.
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4
Cardholder inquiry service.
Get general information about your card, replace your card if it’s lost or stolen and access other customer support options via a 24/7 hotline.
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OpenSky Secured Visa Credit Card Rewards
OpenSky recently announced their new OpenSky Rewards program, offering up to 10% cash back when shopping at select merchants. On their site, they say, “Simply view your offers, use your enrolled card at participating merchants, and earn cash back.”
OpenSky Secured Visa Credit Card fees, rates & limit
The cost of holding a credit card is always important to consider. Understanding the fees and rates can help you decide whether a card is good for your wallet.
OpenSky credit card fees
This card has a $35 annual fee, which means you’ll automatically pay at least $35 every year as a member. Most secured credit cards designed to help you build credit do come with an annual fee, and the OpenSky fee is fairly competitive when compared to the fee for other similar cards.
Other fees you might pay as an OpenSky credit card holder include:
Late payment fees. If you miss your due date, you may pay a late payment fee up to $40.
Returned payment fees. If your payment is returned due to insufficient funds or any other reason, you may pay a fee up to $40.
Foreign transaction fees. If you use your card to pay for anything outside of the United States, you’ll pay a fee of 3% of the transaction. So, if you buy something for $100, you’d pay an extra $3.
Cash advance fees. If you use your card to take out cash at an ATM or register, you’ll pay a fee of $6 or 5% of the transaction, whichever is more.
OpenSky credit card interest rates
The OpenSky secured credit card comes with a regular APR of 25.64% variable. There is no 0% introductory APR offer for purchases or balance transfers. The APR on cash advances is the same as the variable APR on purchases.
Overall, this is a fairly competitive APR for this type of card. Some credit-building or secured credit cards designed for people with poor or no credit have interest rates over 30%.
OpenSky credit limit
The credit limit on an OpenSky Secured Visa Credit Card ranges from $200 to $3,000. You decide your credit limit when you make your refundable security deposit.
You can ask for a credit limit increase later. If OpenSky approves your request, you will have to deposit the extra amount to secure your new credit limit. For example, if you originally deposited $200 and now want a credit limit of $700, you would have to deposit $500 more.
Generally speaking, the OpenSky Secured Visa Credit Card compares favorably to other secure credit cards. Its fee structures and interest rates are competitive — and better than some other offerings on the market. It’s still a good idea to compare your options before you settle on one card over another.
OpenSky Secured Visa card vs. OpenSky Plus card
OpenSky also offers the OpenSky Plus secured credit card. This is a credit card with no annual fee, but the interest rate is 29.99% variable, which is slightly higher. The minimum security deposit for the OpenSky Plus card is also $300, which is $100 more than the minimum for the OpenSky card.
Is the OpenSky Secured Visa Credit Card right for me?
If you want to add positive reporting to your credit history and can afford to make a security deposit of at least $200, the OpenSky Secured Visa Credit Card may be a good choice. However, you must maintain your account in good standing and make all your payments on time to benefit from holding this card.
If you’re unsure about the OpenSky credit card, check out these reviews to see if another card may be a better fit for helping you build or establish credit:
OpenSky credit card application: How do I become a member?
You can apply online with OpenSky. You’ll need to complete a short application that asks for your name, address and some other personally identifying information. You may have to provide your income level and checking account information to make your security deposit. However, OpenSky doesn’t require that you link a bank account to apply, and you might be able to make payments a different way.
The OpenSky credit card is a secured credit card that offers benefits for building credit. It may be a good option for those with no credit history or poor credit, but it isn’t the best credit card for anyone who already has an excellent credit score.
Is OpenSky a good way to build credit?
Because OpenSky reports to all three credit bureaus, it can be a good way to build credit as long as you manage your account responsibly and make all your payments in a timely manner.
Is the OpenSky credit card secured?
Yes, this credit card is secured. You must put up a security deposit that will set your credit limit. For example, if you deposit $350, your credit limit will be $350.
Does OpenSky become unsecured?
No, the card doesn’t become unsecured. However, OpenSky or other credit card companies may preapprove you for an unsecured credit card in the future based on the good work you do to improve your credit history.
How do I cancel my OpenSky credit card?
To close your credit card account, you call OpenSky customer service. You will need to close your account and pay off any remaining balance to get your security deposit back.
Does the OpenSky credit card earn rewards?
The OpenSky Secured Visa earns up to 10% cash back at select merchants.
Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.
Over the past 12 years, Sarah has contributed to numerous publications in the personal and small business finance sector, including content on budgeting, bankruptcy, small business accounting, and financial tech. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful, relevant resources for readers.
* Opinions expressed here are those of the LA Times Compare Cards Team and have not been reviewed or approved by any advertiser or entities included within this content. See our editorial policy for more details.
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