The OpenSky® Secured Visa® Credit Card is a popular option for people looking to rebuild or establish their credit history.

Issued by Capital Bank, this card ensures accessibility and simplicity, specifically designed for those who face challenges getting approved for other cards due to poor credit or a lack of credit history.

With monthly reports sent to the three major credit bureaus in the United States (Experian, Equifax, and TransUnion), OpenSky helps users improve their credit score when used responsibly.

In this article, we will cover everything you need to know about the OpenSky® Secured Visa®, including its benefits, drawbacks, how it works, and tips to maximize its potential.

What is a Secured Credit Card?

A secured credit card requires a refundable security deposit as a condition for issuance.

This deposit serves as collateral for the issuer, reducing the risk of default. In the case of OpenSky, the credit limit is typically equal to the deposit amount, with a minimum of $200 and a maximum of $3,000.

Secured cards are ideal for those seeking to improve their credit, as they allow users to build a positive financial history by reporting regular payments to credit bureaus.

Benefits of the OpenSky® Secured Visa®

✔️ Accessibility Without a Credit Check: unlike most credit cards, OpenSky does not require a credit check during the application process. This means even those with damaged or no credit history can qualify.

✔️ Reports to Credit Bureaus: the biggest benefit of OpenSky is its positive impact on credit. On-time payments are reported to the three major credit bureaus, helping improve your credit score over time.

✔️ Simple Application Process: the application process for OpenSky is straightforward and does not require a bank account. The security deposit can be made via bank transfer, money order, or check, offering flexibility.

✔️ Wide Acceptance: as a Visa card, OpenSky is accepted at millions of locations worldwide, making it a reliable option for everyday purchases and emergencies.

✔️ Low Annual Fee: with an annual fee of $35, OpenSky is affordable compared to other cards designed for credit rebuilding.

Fees and Terms

While OpenSky is an excellent tool for rebuilding credit, it’s essential to understand all associated fees and terms:

1. Annual Fee: $35.
2. Interest Rate (APR): A variable rate of 22.64% for purchases.
3. Late Payment Fee: Up to $38 for late payments.
4. Foreign Transaction Fee: 3% of the amount for each international transaction.

Tip: To avoid paying interest, try to pay your balance in full every month.

How does the security deposit work?

The security deposit is the cornerstone of how OpenSky operates:

• Minimum and Maximum: The minimum deposit is $200, and the maximum allowed is $3,000.
• Credit Limit Guarantee: Your credit limit will be equal to the deposit amount.
• Refund: The deposit is refunded when you decide to close the account, provided there are no outstanding balances.

This model allows the card issuer to mitigate default risks, making OpenSky accessible to a wide range of customers.

OpenSky® Secured Visa® vs. Other Secured Cards

Comparing OpenSky with other secured cards helps evaluate if it’s the best choice for your needs.

Feature	OpenSky®	Discover it® Secured	Capital One® Secured
Annual Fee	$35	$0	$0
Minimum Deposit	$200	$200	$49, $99, or $200
Reports to Bureaus	Yes	Yes	Yes
Rewards	No	Cashback	No
Upgrade to Unsecured Card	No	Possible	Possible

OpenSky stands out for its simplicity and lack of a credit check, while other cards, such as the Discover it® Secured, offer rewards and potential upgrades.

Strategies to Maximize OpenSky Usage

To get the most out of OpenSky and improve your credit:

Always Pay on Time: Timely payments are crucial for building a good credit history.

Keep Your Balance Low: Use less than 30% of your credit limit to maintain a low credit utilization ratio.

Avoid Paying Interest: Paying your balance in full avoids interest charges and keeps costs low.

Monitor Your Credit: Use credit monitoring services to track your progress and identify areas for improvement.

Consider Other Options: Once your score improves, evaluate unsecured cards that offer rewards and additional benefits.

Drawbacks of OpenSky

While OpenSky is a solid choice, it does have some limitations:

• Annual Fee: Although low, it might be an unnecessary cost for those looking to avoid fees altogether.
• High Interest Rate: The 22.64% APR is high for those who don’t pay their balance in full.
• No Rewards: It doesn’t offer cashback or other perks associated with more sophisticated cards.
• No Upgrade to Unsecured Card: It doesn’t allow a transition to an unsecured card, requiring users to look for other options when their credit improves.

Who should choose the OpenSky® Secured Visa®?

OpenSky is ideal for:

• Credit Beginners: Young individuals or newcomers to the U.S. who need to establish a credit history.
• People with Poor Credit: Those struggling to get approved for traditional cards.
• Those Without a Bank Account: Users who need alternative options for the security deposit.

On the other hand, those with a decent credit score might consider cards with rewards and additional perks.

Conclusion

The OpenSky® Secured Visa® Credit Card is a powerful tool for rebuilding or establishing credit. Its accessibility, no-credit-check policy, and monthly reporting to credit bureaus make it a reliable ally for improving financial health.

While it has some limitations, such as the annual fee and lack of rewards, OpenSky serves its primary purpose effectively: helping users achieve better financial futures. With responsible use, you can quickly progress and eventually transition to cards with more benefits.

If you’re looking for a safe starting point to build credit, OpenSky is a dependable and effective choice.

Read more: Citi Double Cash Card: Earn 2% on Every Purchase with No Annual Fee

---

FAQ

Is it necessary to have a good credit score to apply?

No, there’s no credit check required, making it accessible even if you have poor or no credit history.

How does the security deposit work?

The deposit is refundable and determines your credit limit. It starts at $200 and can go up to $3,000.

Will using this card help improve my credit?

Yes, on-time payments are reported monthly to the three major credit bureaus, which can help boost your credit score.

Are there rewards or cashback offers?

This option is focused on credit building and doesn’t offer rewards or cashback.

Can I upgrade to an unsecured option in the future?

This account doesn’t provide an automatic upgrade path, but once your credit improves, you can apply for other unsecured cards.

Do I need a bank account to apply?

No, a bank account is not required. The security deposit can be made via money order, check, or wire transfer.

How long does it take to get approved?

Approval is typically processed within a few business days after submitting your application and security deposit.

What happens to my deposit if I close the account?

Your deposit is fully refundable as long as the account is paid off in full when you close it.

Are there any hidden fees?

The card has a straightforward fee structure, including a $35 annual fee. Additional fees, like late payment or foreign transaction fees, are outlined in the terms and conditions.

Can I increase my credit limit?

Yes, you can increase your limit by adding to your security deposit, up to the maximum allowed of $3,000.