The OpenSky credit card is shy on perks and rewards. Users will also have to pay an annual fee. But, if you are looking for a way to build or rebuild your credit, OpenSky credit card may be your best option.
With the OpenSky credit card, you do not have to worry about a credit check. You also don’t need a bank account. The application process is easy, and you can get approved right away. Now that we’ve covered some of the basics let’s take a closer look at the OpenSky credit card.
- $35 annual fee
- 10.14% variable annual percentage rate
- 650+ recommend credit score
- $200 – $3,000 refundable security deposit
- Security deposit determines your credit limit
- OpenSky reports to all three major credit bureaus
- Secured Visa credit card
- 3% foreign transaction fee
- 5% cash advance fee
- No cash back reward
OpenSky Credit Card: What’s Good
In today’s credit-driven world, it is rare to find a credit card company that does not perform a credit check. Even companies like Capital Bank want to know your credit history with a secured credit card. Therefore, your chances of becoming a cardholder with OpenSky are much higher.
Plus, you do not need a bank account – an even rarer non-requirement. So, what distinguishes OpenSky from other companies is that they don’t make it hard to rebuild your credit. You can get a credit line and start rebuilding your credit without all the hassle.
Although you do have to pay an annual fee, OpenSky has fewer fees than other credit card companies. You may also be able to take advantage of occasional credit card offers. Check their website to discover any current credit card offers that may save you from paying fees or high interest rates.
No Credit Check
If you have a credit score of 600 or below, it is difficult to build credit with credit card companies. Banks offering a visa card will deny you if you have bad credit, or they require high interest rates or deposits. Open Sky card makes it easier for you to re-establish your credit because there is no credit check.
Companies such as Capital One either offer unsecured cards or require credit checks. As a result, you need a reasonably clean record and a higher credit score. Not so with OpenSky. While a higher interest rate may not be ideal, you can at least secure a card. An OpenSky secured Visa is the way to go when your credit keeps you from getting a Visa or Mastercard.
No Bank Account
Credit card companies may require a bank account as a backup for the card. For instance, if you exceed the limit on your card, the credit card company can draw from your bank account. Discover card often requires a bank account for this reason. Another reason why a company may need a bank account is that it establishes trust with the cardholder.
However, opening a bank account is not always possible if you have bad credit or no cash to start with. OpenSky solves this problem by eliminating the need for a bank account. The credit card issuer opens your account, takes your refundable deposit, and sends you the card. Improving your credit may help you open a bank account in the future.
Activity Reported to All Three Credit Bureaus
If you want to boost your credit score, use your credit card responsibly. OpenSky will send OpenSky reports to all three credit bureaus. The credit bureaus include
Your credit report will contain a month-by-month overview of your payment history. The report will demonstrate that you have paid your balance on time every single month. If you have consistent payments that are on time, your credit score will slowly go up. Keep in mind that this may take a few months.
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OpenSky will send the reports automatically each month. You do not have to send the report yourself. Just check your report every month to make sure that the information is updated.
OpenSky Credit Card: Where It Falls Short
While the OpenSky Credit Card has some clear benefits, there are some red flags that you need to consider. If any of these potential downsides do not work for you, then you may want to consider getting a different card.
Credit Card Annual Fee
Although building credit is relatively easy with OpenSky, it does not come for free. The OpenSky credit card annual fee is $35. Compared to come credit card companies that charge between $50 and $100 for annual fees, OpenSky’s is reasonable. However, other companies such as Capital One, Chase, and Citi® offer cards with no annual fees.
In addition to the annual fee, you may also want to compare the foreign transaction fee and balance transfer fee. Other companies may offer a lower balance transfer fee or no fee at all. It is almost impossible to get a secured credit card with zero fees. However, do some shopping around before you land on the OpenSky credit card.
No Upgrade to Perks or Features
Other than your credit line limit, the OpenSky Visa credit card offers few perks and no possible way to upgrade to an unsecured credit card. Even if you connect your card to a bank account (which is not mandatory), you still can’t switch over. Many of the best cards on the market also do not allow upgrades.
Discover it® is one of the few that has an option for an upgrade. However, they do require a bank account. Several other companies that offer upgrades will also require a bank account. So, if you do not plan on opening an account, then upgrading may not be important to you. Even if you do, however, you may opt for a debit card from your bank account instead of upgrading your secured card.
Not the Lowest Deposit Available
Credit education often involves learning about deposits. If you have good credit, then many card companies will allow you to open a line of credit with a low deposit. For instance, Capital One® secured Mastercard gives you a $200 line of credit with just a $49 or $99 deposit. It is a great credit building option.
This is another area where OpenSky falls short – but not by much. While $200 seems high, it is also a recommended starting point for building credit. This is especially true if you are looking for a basic card and don’t care about upgrading or a rewards program. Just makes sure you get accurate information about deposit limits and card details by contacting OpenSky. Sometimes, they have offers or deals with lower deposits.
Visit OpenSky’s Credit Education Page
One of the things that distinguishes OpenSky from other credit card companies is their credit education page. It demonstrates that they are willing to help their customers build good credit and stay on the right financial path.
The education resource page includes topics such as:
- Building credit
- Rebuilding credit
- Credit scores
- Credit reports
- Long-term finances
- Managing debt
- Establishing a credit history
- The FAQ page for applicants
There are several tips and lots of information available to help you make the right decision and manage your credit card.
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What Should You Look for in a Secured Credit Card?
Just because you have bad credit and a low score does not mean you have to be desperate to get a card. Credit card companies are always competing for customers at every level; meaning, they are also competing to sign up people for secured credit cards.
Therefore, you can be selective in which type of credit card you want. The OpenSky credit card has a lot of great features and benefits. However, it may not suit your financial situation. So, as you are shopping for credit cards, you should look for specific features such as:
The Company Should Report On-Time Payments
Credit card companies know that they are helping you establish good credit. Therefore, they should report all on-time payments along with late payments. They need to present a balanced and accurate report of your activity. Reporting good behavior is helps your credit score increase faster.
A Doable Deposit
Every credit card company is entitled to establish its own rules. This includes determining their bottom line deposit requirements as part of the details of the card. You must decide if you can adhere to this part of the cardholder agreement. Do not overextend yourself to put down a $600 deposit if you can’t afford it.
However, you need to realize that higher deposits do come with more benefits or perks. So, before you judge a deposit amount too quickly, find out what comes with a deposit.
The Fee Schedule
As you sign up for a card, make sure you read to the bottom of the application page. Read the fine print and look for all fees. Also, make sure you discuss fees if you plan to call the company (which is a good idea). Understand all the fees on the card and decide if you are willing to pay them.
The Monthly Bill
Many credit card applicants do not understand how their credit card bill works. Consequently, they are often surprised when it arrives and under what conditions. According to the CARD Act, credit card companies can no longer change the due date. Also, the bill must be due at least 21 days after the company sends it out.
If the due date or conditions are not comfortable for you, ask the credit card company if they can change the terms before you commit. Some will, some will not. Also, make sure you ask the company about when the interest kicks in. Some companies have a short grace period before they accrue the interest.
The Deposit Policy
You need to find out several things about your credit card deposit. When speaking with an agent, you need to find out where/how your deposit is held. You may also want to find out when or how you get it back. Finally, ask whether your deposit is included in your line of credit.
If the company goes out of business or is bought out, then you want to make sure you get your deposit back. Also, if you fail to make a payment or pay at all, you may lose our deposit. So, ask about your deposit and under what conditions you get it back (or don’t get it back).
Bottom Line: Is OpenSky Credit Card for You?
If you are looking for an easy and quick way to start building credit or rebuilding credit, OpenSky offers a simple solution. The deposit and fees are slightly high. However, there is no credit check or bank account required. Determine your needs, compare them to the pros and cons of the company, and then decide if you want to move forward.