OpenSky® Secured Visa Credit Card Review at a Glance:
Do you have bad credit and you want to improve it or you lack a bank account? Then, you may need to check out OpenSky Secured Visa Credit Card review!
The OpenSky Secured Visa credit card is among your best options if you are looking to obtain credit without a credit check or a bank account! OpenSky has offers reasonable fees and interest rates to those that are considered a high-risk borrower. However, if you have a bank account and fair to good credit, there are probably better options for you.
For example, you can use a secured card that upgrades to a regular unsecured credit card (if you use it responsibly for some months) without paying an annual fee. Some, however, do charge an annual fee.
Scroll below to read the full OpenSky secured Visa credit card review.
Annual Membership fee: $35
Initial Credit Limit: $200-$3000 (it’s equal to your initial security deposit)
Security Deposit Requirement: $200-$3000
APR (Annual Percentage Rate): Variable 17.39%
Access to higher Credit Line: No
Other Fees & Rates of OpenSky Secured Visa Credit Card
- (Minimum) interest charge: $1
- Late payment fee: up to $38
- Fee for cash advance fee: 5%
- Fee for a foreign transaction: 3%
- Returned payment: up to $25
- Fee for an inactive account: $10 a month after an inactive year
OpenSky® Secured Visa Credit Card Review – Pros & Cons:
- No credit check is required for applying. That’s why it’s ideal for consumers with poor credit.
- No bank account required
- It reports to three major credit reporting agencies. Thus, it’s a good choice to build credit if you haven’t any credit history.
- You can set the credit limit
Other Perks of OpenSky Secured Credit Card:
- It works like any other Visa card. You can use it to withdraw cash from ATMs, for foreign transactions (3% fee), and for automatic payments using online management tools.
- OpenSky Secured Visa Credit Card provides free resources, articles, support and it has an online community (e.g. card’s website or its Facebook page). This way, young or beginner cardholders can learn the right way how to manage credit and build their credit scores.
- Depending on your initial deposit, you can get a starting credit line of up to $3,000 (minimum $200). This limit is higher than the industry’s average.
- You can choose to get reminders’ alerts for due payments or when returns and credits have been posted.
- The 19.37% variable APR is more tolerant in comparison to higher rates of similar secured credit cards.
- If you’re looking to build credit, you can take advantage of the ability to add authorized users for this card.
- It doesn’t require a debit card to make your initial one-time deposit. The majority of other secured cards require a debit card/account to make the one-time deposit.
Cons of OpenSky Secured Visa Credit Card:
- No rewards (cash back or travel-related)
- You have to pay an annual fee
- An inactive fee of $10/month if you haven’t use the card for more than 12 months
- No option for an upgrade after some months
How to start with OpenSky® Secured Visa Credit Card
Do you want to get an OpenSky Secured Visa credit card?
Then, you can quickly apply through the card’s official website by completing 5 steps:
- Personal info
- Contact and address details
- Security and financial info
- Security Deposit
Since this card doesn’t require a credit check or bank account, the chances of approval are high.
Also, it’s a strong tool for rebuilding or starting to build credit (by successfully making on-time payments).
You start by choosing a credit line and securing it with one refundable on-time deposit. This amount will also be your credit limit. It can be from $200 up to $3,000.
Your options for funding the deposit are:
- Using a debit card
- Western Union
- Money order
- Mailing a check
After your card is approved (it can take 2 to 3 weeks until you receive it), OpenSky secured visa credit card reports to all three major credit reporting bureaus (TransUnion, Equifax, Experian). Thus, you can start building your credit.
OpenSky Secured Visa Credit Card has stated that 99 percent of consumers who started without a credit score managed to build a score in only six months!
Building Credit Without Credit Check
Every time you apply for a new credit card, the company/issuer will probably check your credit report and it will add a hard inquiry on your credit history.
Hard inquiries hurt your credit score a little, but the effect often disappears after a few months.
OpenSky Secured Visa credit card doesn’t require a credit check. This has two benefits:
- They won’t add a hard inquiry on your credit report
- They will probably approve your request even if you have a poor credit score
However, this doesn’t mean that this card doesn’t have any requirements at all. In order to get approval for OpenSky Secured Visa credit card you have to:
- Be a USA permanent resident or citizen
- Be at least 18 years old
- Prove that your monthly income is greater than your monthly expenses
- Prove that your income is enough to cover the monthly payment of the new credit card
- Have a valid SSN (Social Security Number) or individual TIN (taxpayer identification number)
- Your previous Capital Bank’s accounts should be in good standing and you don’t already have 2 or more Capital Banks’ credit cards
As soon as you start using your credit card, OpenSky secured Visa will report your activity on all three credit reporting agencies.
This is important because you can’t be sure what credit report your potential future creditors will check.
About OpenSky® Secured Visa Credit Card’s fees
The fees of OpenSky Secured Visa Credit Card are close to the industry’s average fees.
Although you can find other secured credit cards that don’t charge an annual fee, the amount of $35 may justify the cause of building credit. Note that there are other similar credit cards with a higher annual fee as well.
Further, the $35 annual fee worth it if you want to use a credit card but you have a poor credit score or no bank account.
Who is OpenSky® Secured Visa Credit Card for?
This card is a good option for:
- Beginners that want to build credit through on-time payments
- Consumers with no credit history (e.g. students) that want to build credit from scratch
- Those with poor credit score
- Consumers with no bank accounts
- Those who want to make sure that their activity is reported to all three major credit reporting agencies
- Lower interest rates and fees matter more than a rewards’ program
Who is This Credit Card NOT for:
There are probably better options than OpenSky Secured Visa Credit Card for those who:
- Have a good credit score (690 and above) and they can access more generous options (better rewards and perks)
- If you are looking for cashback and other rewards (like travel)
- Have experience in using credit and don’t want to pay annual fees
- Those that prefer to have access in upgrade options after some months of using their credit card responsibly
Other Similar Credit Cards to Consider:
There are two other options similar to Open Sky Secured credit card that you probably need to check:
- Discover it Secured Credit Card
- Capital One Secured Mastercard
Discover it Secured Credit Card
This credit card is one of the few that lets you earn rewards. The cashback reward is 2% at some restaurants and gas stations and 1% on any other purchase. Further, Discover it Secured matches with the card all the cashback rewards you earned at the end of your first year.
After eight months with the card, they will check your account and let you know if you can upgrade your credit limit.
However, this credit card’s issuer will run a credit check and you’ll also need a bank account.
Capital One Secured Mastercard
This card has no annual fee and many other advantages such as travel accident insurance, no foreign transaction fees, extended warranty protection, auto rental damage insurance (collision).
Last but not least, Capital One Secured Mastercard is one of the few that on its kind that considers upgrading your credit limit higher than your security deposit. After six months, they will check your account and let you know if you can extend your limit.
OpenSky® Secured Visa Credit Card Review – Final Verdict
With a few words, this card is a really good option for those who seek to get approval while having a poor credit score or don’t have a bank account.
Also, it’s probably the best option for beginner cardholders and those without any credit history that want to start building credit.
However, there might be better options for consumers with high credit scores, cardholders that look for a good rewarding program, and those who seek upgrade paths.
OpenSky® Secured Visa Credit Card Review FAQs
A refundable security deposit means a refundable amount that acts as collateral for your secured credit card. Your credit card issuer holds this amount and they can only use it if you stop paying your monthly bills.
If you cancel your account and it’s in good standing, you will take back your security deposit.
No, you can’t use your security deposit to pay your card’s monthly bills or any other bills.
If they approve your application, it usually takes 12-14 business days to refund your security deposit. Of course, your account should be in good standing to take the money back.
If you want to increase your OpenSky Secured Visa Credit Card limit, you have to add funds on the card (up to $3,000)
Yes, this card is definitely among the best options if you want to avoid a credit check or you have damaged your credit score.
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