If you’re in the market for a credit card that can help you rebuild your credit, the OpenSky Secured Visa Credit Card could be the solution you’ve been looking for. In this comprehensive review, we’ll dive into the details of this card, highlighting its key features, benefits, and potential drawbacks.
Introduction
A secured credit card is an excellent way to start building or rebuilding your credit score. By providing a security deposit, using the card for purchases, and paying your monthly bill on time, you can gradually improve your creditworthiness. There are several reasons why you might consider getting a secured credit card, such as a recent bankruptcy, back taxes, previous missed payments, or even if you’ve never had credit before.
The OpenSky® Secured Visa® Credit Card stands out from the crowd because it doesn’t require a credit check or even a bank account for approval. This is particularly beneficial for individuals with a history of bankruptcies or back taxes, as many other secured credit cards might not approve you under such circumstances. With the OpenSky Secured Visa, you can take a step toward financial recovery, regardless of your past financial challenges.
Quick Facts
Let’s start by examining some key facts about the OpenSky Secured Visa Credit Card:
- No credit check or bank account needed to apply.
- Annual fee: $35.
- Minimum $200 opening deposit required, up to a maximum of $3,000.
- Your credit limit is equal to your deposit.
- Reports to all three major credit bureaus (Experian, Equifax, and TransUnion).
- Finance Devil Rating: 3.4
How the OpenSky Secured Visa Credit Card Works
The OpenSky Secured Visa Credit Card operates on a simple principle. To get started, you need to make an initial deposit, which serves as your credit limit. This deposit can range from $200 to a maximum of $3,000. Your credit limit is directly tied to the amount you deposit.
One of the standout features of this card is that it doesn’t require a credit check for approval. This makes it accessible to individuals with damaged credit or those who have no credit history at all. The absence of a credit check means that applying for this card won’t negatively impact your credit score with a hard inquiry.
Additionally, the OpenSky Secured Visa Credit Card reports your payment history to all three major credit bureaus. This means that your responsible use of the card can have a positive impact on your credit score over time, helping you rebuild your credit.
Benefits and Drawbacks
Pros:
- No credit check: As mentioned, this card is accessible to individuals with poor or no credit history.
- Low annual fee: With an annual fee of just $35, it’s a budget-friendly option.
- Credit building: Responsible use of this card can lead to improvements in your credit score.
- Flexible credit limit: You can start with as little as a $200 deposit or go up to $3,000, depending on your budget.
- Reports to major credit bureaus: Your payment history is reported to Experian, Equifax, and TransUnion, helping you build a positive credit history.
Cons:
- Annual fee: While relatively low, the card does have an annual fee, unlike some other secured cards.
- No rewards: The OpenSky Secured Visa Credit Card doesn’t offer rewards or cashback incentives.
- Foreign transaction fee: It comes with a 3% foreign transaction fee, which can add costs if you travel internationally.
- Limited additional benefits: Compared to other secured cards, it lacks some extra perks like cashback rewards or extended warranties.
READ ALSO: Visa vs. Amex: Which is better for international travel?
Comparing to Other Secured Credit Cards
The OpenSky Secured Card is undoubtedly a solid choice for those looking to build or rebuild their credit. However, it’s essential to consider how it compares to other secured credit cards on the market. Here’s a detailed comparison with two popular alternatives: the Capital One Platinum Secured Credit Card and the Discover it® Secured Credit Card.
OpenSky Secured Visa Credit Card vs. Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card requires a credit check for approval but comes with no annual fee and no foreign transaction fees. It also offers the potential for a higher credit limit than your initial deposit, making it more attractive to some applicants.
OpenSky Secured Visa Credit Card
- Annual Fee: The OpenSky Secured Visa Credit Card has an annual fee of $35.
- Credit Check: This card does not require a credit check for approval, making it accessible for individuals with limited or damaged credit histories.
- Initial Credit Limit: Your credit limit on this card is determined by the amount of your security deposit, with a maximum limit of $3,000.
- Interest Rate (APR): It offers a variable APR of 22.64%.
- Foreign Transaction Fee: There is a 3% foreign transaction fee for using this card for purchases made outside of the United States.
Capital One Platinum Secured Credit Card
- Annual Fee: The Capital One Platinum Secured Credit Card does not have an annual fee.
- Credit Check: Unlike the OpenSky card, this card requires a credit check as part of the approval process.
- Initial Credit Limit: The initial credit limit is flexible and can be as low as $200, depending on your creditworthiness and the amount of your security deposit.
- Interest Rate (APR): It offers a higher variable APR of 30.49%.
- Foreign Transaction Fee: This card does not charge a foreign transaction fee, making it a better option for international use.
The OpenSky Secured Visa Credit Card is a suitable choice for those who want to avoid a credit check and are willing to pay a $35 annual fee. It offers a competitive APR and a higher potential credit limit for those who can make a larger security deposit.
On the other hand, the Capital One Platinum Secured Credit Card is a no-annual-fee option but does require a credit check. It may be more accessible for individuals with lower credit scores. However, it comes with a higher APR, so it’s essential to consider your ability to pay off balances each month.
Ultimately, the choice between these two cards will depend on your specific credit situation and your preference for annual fees and credit check requirements.
READ ALSO: Unveiling the Capital One Platinum Secured Credit Card: A Comprehensive Review
OpenSky Secured Visa Credit Card vs. Citi Secured Mastercard
The Citi® Secured Mastercard® doesn’t have an annual fee and allows online bill payment until midnight on the due date, which can be advantageous for those waiting for funds to arrive. However, it may be less accessible to those with poor or no credit history.
OpenSky® Secured Visa® Credit Card
- Annual Fee: The OpenSky Secured Visa Credit Card has an annual fee of $35.
- Credit Check: This card does not require a credit check for approval, making it accessible for individuals with limited or damaged credit histories.
- Initial Credit Limit: Your credit limit on this card is determined by the amount of your security deposit, with a maximum limit of $3,000.
- Interest Rate (APR): It offers a variable APR of 22.64%.
- Foreign Transaction Fee: There is a 3% foreign transaction fee for using this card for purchases made outside of the United States.
Citi® Secured Mastercard®
- Annual Fee: The Citi Secured Mastercard does not have an annual fee.
- Credit Check: While it doesn’t require a traditional credit score, Citi may check your credit history as part of the application process.
- Initial Credit Limit: The initial credit limit is determined by the amount of your security deposit, which can be as low as $200.
- Interest Rate (APR): It offers a variable APR of 27.74%.
- Foreign Transaction Fee: The Citi Secured Mastercard also charges a 3% foreign transaction fee for purchases made outside of the United States.
The OpenSky Secured Visa Credit Card and the Citi® Secured Mastercard® both serve as secured credit card options for individuals looking to build or rebuild their credit. However, there are key differences to consider.
The OpenSky card has a $35 annual fee but does not require a traditional credit check, making it more accessible for those with limited or damaged credit histories. It also offers a competitive APR and a higher potential credit limit for those who can make a larger security deposit.
The Citi Secured Mastercard, on the other hand, does not have an annual fee, but Citi may still check your credit history during the application process. It offers a lower variable APR but has a slightly lower maximum initial credit limit.
Ultimately, the choice between these two cards will depend on your specific credit situation, your willingness to pay an annual fee, and your preference for credit check requirements.
OpenSky® Secured Visa® Credit Card vs. Discover it® Secured Credit Card
The Discover it Secured Credit Card has no annual fee, offers cashback rewards, and even a welcome bonus. However, it may be harder to qualify for due to a required credit check.
OpenSky® Secured Visa® Credit Card:
- Annual Fee: The OpenSky Secured Visa Credit Card has an annual fee of $35.
- Credit Check: This card does not require a credit check for approval, making it accessible for individuals with limited or damaged credit histories.
- Initial Credit Limit: Your credit limit on this card is determined by the amount of your security deposit, with a maximum limit of $3,000.
- Interest Rate (APR): It offers a variable APR of 22.64%.
- Rewards: The OpenSky card does not offer a rewards program.
- Foreign Transaction Fee: There is a 3% foreign transaction fee for using this card for purchases made outside of the United States.
Discover it® Secured Credit Card:
- Annual Fee: The Discover it® Secured Credit Card does not have an annual fee.
- Credit Check: This card requires a credit check as part of the approval process.
- Initial Credit Limit: The initial credit limit is determined by the amount of your security deposit, which can range from $200 to $2,500.
- Interest Rate (APR): It offers a variable APR of 28.24%.
- Rewards: The Discover it® Secured Credit Card offers a rewards program, including 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases per quarter) and 1% cash back on all other purchases. Additionally, Discover matches all cash back earned at the end of the first year for new cardmembers.
- Foreign Transaction Fee: This card does not charge a foreign transaction fee, making it a better option for international use.
In summary, both the OpenSky® Secured Visa® Credit Card and the Discover it® Secured Credit Card are secured credit card options for individuals looking to build or rebuild their credit. However, there are key differences to consider.
The OpenSky card has a $35 annual fee but does not require a credit check, making it accessible to those with limited credit histories. It offers a competitive APR and a higher potential credit limit for those who can make a larger security deposit. However, it does not offer a rewards program.
The Discover it® Secured Credit Card, on the other hand, does not have an annual fee but requires a credit check during the application process. It offers a rewards program with cash back benefits and a unique cash back match at the end of the first year, making it an attractive option for those who want to earn rewards while building credit. Additionally, it does not charge a foreign transaction fee, making it a better choice for international travelers.
The choice between these two cards will depend on your specific credit situation, your willingness to pay an annual fee, your preference for credit check requirements, and your desire to earn rewards.
Is the OpenSky Secured Visa Credit Card for You?
The OpenSky® Secured Visa® Credit Card may not offer the lowest fees or the most extensive benefits, but it’s an excellent option for individuals with severely damaged credit, recent bankruptcies, or tax issues. Its lack of a credit check requirement means that almost anyone with a valid Social Security number can apply and be approved.
If your credit score is low or you have no credit history, the OpenSky Secured Visa card could serve as a solid starting point to improve your financial situation.
To Recap
The OpenSky® Secured Visa® Credit Card is a valuable tool for rebuilding your credit. While it may not provide the most competitive rewards or benefits, its accessibility and credit-building potential make it a worthy choice, especially if you’ve faced financial challenges in the past.
FAQs
Is there a welcome bonus with the OpenSky Secured Visa Credit Card?
- No, this card does not offer a welcome bonus. It focuses on helping you build credit.
What is the credit limit for the OpenSky Secured Visa Credit Card?
- Your credit limit is determined by your initial deposit, which can range from $200 to $3,000.
Does the OpenSky Secured Visa Credit Card have foreign transaction fees?
- Yes, it comes with a 3% foreign transaction fee, so it’s not the best choice for international use.
Can I increase my credit limit with the OpenSky Secured Visa Credit Card?
- Yes, you can increase your credit limit by adding more money to your account.
Does the OpenSky Secured Visa Credit Card report to credit bureaus?
- Yes, it reports your payment history to all three major credit bureaus, helping you build credit.
Can anyone get approved for an OpenSky credit card?
- Yes, anyone with a valid Social Security number is eligible to apply and be approved since OpenSky doesn’t perform a credit check.
Can you be denied an OpenSky credit card?
- While OpenSky doesn’t check your credit when you apply, other factors such as insufficient income or errors on your application can result in denial.
Does OpenSky automatically increase your credit limit?
- No, any credit increase must be requested, and it may incur a fee after the first year.
How often does OpenSky increase your credit limit?
- OpenSky increases your unsecured credit line by $50 after making three on-time payments. Further increases may be requested for a fee.
In conclusion, the OpenSky Secured Visa Credit Card is a valuable tool for individuals looking to rebuild their credit. While it may not offer flashy rewards, its accessibility and credit-building potential make it a solid choice for those with
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