OpenSky Secured Visa® Credit Card Review
Struggling to build or improve your credit score can be challenging, especially if you lack a bank account or have a poor credit history. The OpenSky Secured Visa® Credit Card offers a solution for those in this exact situation.
The OpenSky Secured Visa® Credit Card is designed to help individuals with poor credit or no credit history build their credit score. It stands out because it does not require a credit check or even a bank account, making it accessible to a broader range of people. However, it comes with its own set of pros and cons that potential users should consider.
Detailed Review
Overview
The OpenSky Secured Visa® Credit Card is a secured card, meaning it requires a refundable security deposit which acts as your credit limit. This card reports to all three major credit bureaus, aiding in credit building if used responsibly. Below are the key details:
- Annual Fee: $35
- Rewards Rate: 1%-10% Cashback on select purchases
- Regular APR: 25.64% Variable
- Recommended Credit Score: 300-689 (Poor to Fair)
- Security Deposit: $200 minimum, $3,000 maximum
Pros and Cons
Pros
- No Credit Check Required: Approval does not depend on a credit check, making it ideal for those with poor credit.
- No Bank Account Required: Payments can be made via money order or Western Union.
- Credit Bureau Reporting: Reports to all three major credit bureaus, aiding in credit score improvement.
Cons
- Annual Fee: $35 annual fee, which is uncommon for secured cards.
- High APR: Ongoing APR of 25.64% Variable, which is high compared to other options.
- Limited Upgrade Path: Options to upgrade to an unsecured card are limited and not well-documented.
Key Features
Basic Information
| Feature | Details |
|---|---|
| Card Type | Secured |
| Annual Fee | $35 |
| Security Deposit | $200 minimum, $3,000 maximum |
| Interest Rate | 25.64% Variable APR |
| Foreign Transaction Fee | 3% |
| Cash Advance Fee | 5% (minimum fee $6) |
| Credit Bureau Reporting | Reports to all three major bureaus |
Comparison with Other Cards
| Card Type | OpenSky Secured Visa® | Discover it® Secured | First Progress Platinum Select |
|---|---|---|---|
| Annual Fee | $35 | $0 | $39 |
| Intro APR | N/A | 10.99% on Balance Transfers | N/A |
| Regular APR | 25.64% Variable | 28.24% Variable | 19.24% Variable |
| Recommended Credit Score | 300-689 (Poor – Fair) | 300-629 (Poor) | 300-629 (Poor) |
Benefits and Perks
No Credit Check Required
One of the main benefits of the OpenSky Secured Visa® Credit Card is that it does not require a credit check. This makes it accessible to individuals who have struggled with poor credit scores or who lack a credit history altogether.
No Bank Account Required
This card can be a lifeline for those without a bank account. You can pay the security deposit via money order or Western Union, and monthly bills can also be paid this way. However, these methods can incur additional costs over time.
Activity Reporting to Credit Bureaus
The OpenSky Secured Visa® Credit Card reports your activity to all three major credit bureaus—TransUnion, Equifax, and Experian. This reporting can help build your credit score if you make timely payments and keep your balance low.
Drawbacks and Considerations
Annual Fee
The $35 annual fee can be a significant drawback, especially since many secured cards do not charge an annual fee. This fee can add to the overall cost of using the card, making it less attractive compared to other secured credit cards that offer similar benefits without an annual fee.
Limited Upgrade Path
For a long time, the OpenSky Secured Visa® Credit Card did not offer a clear path to upgrade to an unsecured card. While there is now an option to upgrade to the OpenSky Visa® Gold Card, this process is not well-documented and might involve additional fees.
Higher Security Deposit for Plus Version
If you opt for the OpenSky® Plus Secured Visa® Credit Card, you’ll enjoy no annual fee but will need to put down a higher minimum security deposit of $300 compared to the $200 for the regular version. Additionally, the Plus card has a higher APR of 29.99% Variable.
Comparison with OpenSky Plus
| Feature | OpenSky Secured Visa® | OpenSky Plus Secured Visa® |
|---|---|---|
| Annual Fee | $35 | $0 |
| Minimum Security Deposit | $200 | $300 |
| APR | 25.64% Variable | 29.99% Variable |
| Bank Account Required | No | No |
How It Works
Secured credit cards like the OpenSky Secured Visa® require a refundable deposit which acts as your credit limit. This card can be used just like any other credit card for everyday purchases. Here’s how it works:
- Apply Online: No credit check is required.
- Deposit Funds: Minimum $200, up to $3,000.
- Use Your Card: Make purchases and pay your bills on time.
- Build Credit: On-time payments are reported to all three major credit bureaus.
Credit Building
Using the OpenSky Secured Visa® Credit Card responsibly can help you build your credit score. It is crucial to make on-time payments and keep your balance low to maximize the benefits. The card provides access to your FICO score through your account, helping you track your credit improvement.
Frequently Asked Questions (FAQs)
What is a secured credit card?
A secured credit card is backed by a cash deposit that acts as collateral. This deposit usually sets your credit limit and reduces the risk for the card issuer.
How do I get a secured credit card?
Applying for the OpenSky Secured Visa® Credit Card is simple and does not require a credit check. You can apply online and provide a refundable security deposit to get started.
How much will a secured credit card raise my score?
The amount your score can improve depends on several factors, including your current credit status and how responsibly you use the card. Consistently making on-time payments and keeping your balance low can significantly boost your credit score.
What is the best secured credit card?
The best secured credit card depends on your specific needs and situation. The OpenSky Secured Visa® Credit Card is ideal for those who need a card without a credit check or a bank account. However, other secured cards might offer lower fees or better rewards.
Can I get approved for a secured credit card even if I’ve had bad credit in the past?
Yes, the OpenSky Secured Visa® Credit Card does not require a credit check, making it accessible for individuals with poor or no credit history.
Will this be flagged as “secured” on my credit bureau report?
No, the OpenSky Secured Visa® Credit Card will not be flagged as a secured card on your credit report. Your payment and account history will be reported without this designation.
How can I increase my credit limit on my secured card?
You can request a credit limit increase by providing additional security deposits. This can be done through the OpenSky website or mobile app.
How do I pay the required security deposit?
The security deposit can be paid using a debit card, money order, or Western Union payment.
Where is the OpenSky credit card accepted?
The OpenSky Secured Visa® Credit Card is accepted everywhere Visa is accepted, both in-store and online.
The Bottom Line
The OpenSky Secured Visa® Credit Card offers a unique solution for individuals with poor credit or no bank account who are looking to build their credit score. While it comes with an annual fee and a high APR, its accessibility and credit-building features make it a viable option for those who may not qualify for other secured credit cards. Carefully consider your needs and compare with other options to determine if this card is the right fit for you.
