OpenSky® Secured Visa® Review: A Secured Credit Card for Building Credit

Quick Review

The OpenSky® card is one of the easiest credit cards to get approved for, so it’s useful for people who have bad credit or an insufficient credit history.

Here’s what you need to know about the good and the bad of the OpenSky® Secured Visa®:

• You can get a high credit limit: Your initial credit limit is based on the deposit you put down, which can be anything from $200 to $3,000. This gives you a good range of possibilities, so you can tailor your deposit and limit to your needs.
• It’s relatively cheap: There’s an annual fee, but it’s fairly low at $35. There are also no monthly fees, and the APR is lower than comparable cards for this credit score range at 21.14% (variable).
• No credit check required: The OpenSky® Secured Visa® is a no-credit-check credit card, meaning no one will look into your credit history when you apply. Not only does this increase your odds of approval if you have a rough credit report, but it will save you from getting a hard inquiry.
• It’s a good way to build or repair credit: The OpenSky® Secured Visa® offers monthly reporting to all three major credit bureaus, so it can help improve all of your most important credit scores.
• You don’t need a checking account: Many credit cards require a checking account, but the OpenSky® card doesn’t, making it an excellent option for new borrowers who aren’t financially established.

The OpenSky® is​​ a less expensive option than many other credit cards for bad credit holders or new borrowers. Because of this, we recommend it as one of the best credit cards for bad credit, especially among guaranteed approval credit cards with $1,000+ credit limits.

Pros & Cons

Who Is the OpenSky® Secured Visa® Best For?

The OpenSky® Secured Visa® is well suited to the following types of borrowers:

• Borrowers worried about their approval odds: The OpenSky® card doesn’t require a credit check to apply, meaning you’ll most likely be approved, even if your credit history is bad (from, say, charge-offs or bankruptcy).
• Borrowers who don’t have a checking account: Young borrowers or new arrivals in the US might not have had the chance to set up a bank account yet. However, a checking account isn’t necessary for the OpenSky® card. You can pay the security deposit with a money order or through Western Union®.
• Borrowers who don’t have an SSN: You can apply for the OpenSky® Secured Visa® if you don’t have a Social Security number, as long as you have an ITIN (which is a taxpayer identification number that the tax authorities give people who can’t get a social security number).
• Anyone trying to build credit: The OpenSky® card is a good card for building a credit history, as it boasts high approval odds. Plus, it reports to all three credit bureaus, so it helps to build credit across the board.

What the Crowd Says

Reviews for the OpenSky® Secured Visa® are mixed, but they tend to be more positive overall, especially those published by professional reviewers. Although all sources praise the card for its wide accessibility and credit-building potential, experts and cardholders alike have qualms with the card that are worth taking into consideration before you apply.

What Major Publications Say

Professional reviewers generally recommend the OpenSky® Secured Visa®, albeit mainly to people who are ineligible for other credit cards due to disqualifying factors, such as the lack of a bank account or a recent bankruptcy.

Most of the good things that reviewers have to say about the OpenSky® Secured Visa® concern its wide accessibility and lack of credit requirements. However, even the most complimentary reviewers admit that there are better secured credit cards out there with no fees, more perks, and better upgrade options for people who aren’t faced with these obstacles.

What Cardholders Say

Actual cardholders report mixed experiences with the OpenSky® Secured Visa®. Some claim that it has given them the tools they needed to repair their credit, while others complain of poor customer service and difficulty achieving a credit limit increase or card upgrade.

The mix of negative and positive reviews may be due to differences in cardholder expectations. Nevertheless, it’s worth taking into account common user problems, like card delivery and payment issues. Consider checking that the card issuer will accept your form of payment before applying, and explore alternatives if you need a card that you can start using right away.

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Rates & Fees

Fees

• Annual fee: $35
• Cash advance fee: $6 or 5% of amount (whichever is higher)
• Foreign transaction fee: 3%
• Late payment fee: Up to $38
• Returned payment fee: Up to $25

Interest Rates

• Purchase APR: 21.14% (variable)
• Cash advance APR: 21.14% (variable)
• Minimum interest charge: $1

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Rewards

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Credit Limit

The OpenSky® Secured Visa® gives you a credit limit between $200 and $3,000, depending on how much security deposit you pay.

A higher credit limit is obviously more practical for everyday spending, because a small credit limit makes it easy to max out your credit card.

A higher credit limit also helps your credit by making it easier to maintain a low credit utilization rate—a metric that contributes to your credit score and is based on the proportion of your available credit you’re using. A low credit utilization rate is better for your credit score, so it’s a good idea to keep this rate down by getting as high a credit limit as possible.

Credit limit increases

If you want to increase your credit limit anytime after opening your account, you can do this by paying more into your security deposit, until you reach the maximum deposit amount of $3,000.

You may also qualify for unsecured credit limit increases (i.e., where you don’t need to pay additional deposit money), but this depends on your creditworthiness, and it’s totally up to the OpenSky® issuer whether they offer you one.

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Benefits

The OpenSky® Secured Visa® has all the usual benefits of a Visa® credit card. These include the following:

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How to Get an OpenSky® Secured Visa®

Credit Score Required

The OpenSky® Secured Visa® doesn’t check your credit, so there’s no credit score requirement. Even if you have a very bad credit score or no credit score whatsoever, you may still qualify.

How to Apply

Apart from the security deposit you must pay, the OpenSky® credit card has very minimal requirements for applicants. This means it has high approval odds.

To be eligible you must:

• Be at least 18 years old
• Have a Social Security number (SSN) or Individual Taxpayer Identification number (ITIN)
• Have an address where you can receive mail
• Have a means to pay your security deposit (e.g., a debit card)

To apply for an OpenSky® credit card, go to the OpenSky® application page and provide the following information:

• Your full name
• Your email address
• Your physical address
• Your phone number
• Your total annual income
• Your monthly housing payment
• The type of monthly housing you pay for (i.e., do you pay rent, have a mortgage, etc)
• Your SSN or ITIN
• Your date of birth

OpenSky® applications usually take 1–2 days to process. Once your application has been approved and your security deposit processed, your credit card will be mailed to you. In total, it can take 12–14 business days to get your new card.

As mentioned, you won’t need a credit check when you apply for the OpenSky® credit card. This is helpful not only because it makes it easier to qualify for the card; it also means that you won’t get a hard inquiry (i.e., a black mark on your credit report that lowers your credit score by a few points).

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Building Credit

Security Deposit

A flexible security deposit makes building credit easier, as you can get a high enough credit limit to accommodate your spending habits without using too much of your available credit (remember: using less credit is better for your credit score).

Credit Reporting

The OpenSky® regularly reports to all three major credit bureaus: Equifax, Experian, and TransUnion. Regular reporting can massively help your credit score, so long as you stay on top of monthly payments and don’t borrow too much on your card.

Tips for Building Credit

To build credit with the OpenSky® Secured Visa®, you must use your card responsibly. Here are some steps you can take to improve your credit score:

• Pay your bills on time: If you miss credit card payments, you risk getting a late payment on your credit report, and this can hurt your credit. On the other hand, when you pay your bills promptly, it’s good news for your credit score.
• Keep your spending to a minimum: As mentioned, your credit score depends partly on a metric called the credit utilization rate, which is the proportion of your available credit you’re using. A lower credit utilization rate is better, so the less money you spend on your OpenSky® Secured Visa®, the better.
• Pay a larger security deposit: A higher credit limit helps your credit score for the same reason that lower spending does—because it helps you to maintain a better (lower) credit utilization rate. You can increase your OpenSky® credit limit simply by paying more toward your security deposit, which helps your credit utilization rate and, ultimately, your credit score.

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FAQs

What bank issues the OpenSky® Secured Visa®?

The OpenSky® Secured Visa® is issued by Capital Bank.

Can I get cash back with the OpenSky® Secured Visa®?

No, the OpenSky® Secured Visa® card doesn’t offer any cash back or other types of rewards.

Can I get cash advances with the OpenSky® Secured Visa®?

Yes, credit card cash advances (where you use your card to take out money from an ATM or for cash-like transactions such as wiring someone money) are allowed on the OpenSky® card. However, you’ll pay quite a lot in fees and interest.

The OpenSky® Secured Visa® card’s cash advance fee is $6 or 5% of the amount you borrow—whichever is higher. Also, with cash advances, interest kicks in from the date of the transaction (unlike with purchases). As such, it’s best to avoid using the card in this way, since it can get expensive.

Can I make balance transfers with the OpenSky® Secured Visa®?

No, the OpenSky® Secured Visa® doesn’t allow balance transfers (where you move debt from one credit card to another).

Can I use the OpenSky® Secured Visa® anywhere?

Yes, you can use the OpenSky® Secured Visa® wherever Visa® is accepted, which is almost anywhere that accepts credit cards. Be careful when using it abroad though, as there’s a 3% foreign transaction fee.

What is the customer service phone number for the OpenSky® Secured Visa®?

The customer service phone number for the OpenSky® Secured Visa® is (855) 763-6736.

How do I cancel my OpenSky® Secured Visa®?

You can cancel your account by calling Customer Service on (855) 763-6736 or by writing to:

OpenSky Card Services

P.O. Box 9224

Old Bethpage, NY 11804-9224

OpenSky® will return what’s left of your deposit (which could take up to eight weeks), and then ask you to either return your credit card to them or destroy it.