OpenSky Secured Visa Credit Card Review

Full Review of OpenSky Secured Visa Credit Card

Pros Explained

• Bank Account Not Required: Other secured cards may require you to have a bank account before you can open an account with them. This card doesn’t have that requirement, although not having a bank account can make it more challenging to pay your credit card bill.
• No Credit Check Required: When you have no credit or damaged credit, it can be difficult to get approved for many credit cards. The OpenSky Secured Visa Credit Card, however, doesn’t check your credit in any way when you apply. Even so, it is possible to be denied for the OpenSky Visa card for other reasons.
• Reports to All Three Major Credit Bureaus: Your credit information from your card will be reported monthly to Equifax, Experian, and Transunion. This gives you the ability to start building or rebuilding your credit, as long as you practice good credit habits, such as paying your bill by the due date each month. At the same time, negative credit information will be reported, making it extremely important to pay your bill on time and to avoid high credit utilization.
• You Set Your Credit Limit, Subject to Approval: Your credit limit will be equal to your refundable deposit, subject to approval by the company. The minimum deposit amount, and therefore the credit line, is $200. It is possible to have a limit of up to $3,000.

Cons Explained

• Can’t Upgrade to an Unsecured Card in the Future: Secured credit cards often have the option to graduate to an unsecured credit card with that same company after proving yourself a worthy credit risk. The OpenSky Secured Visa Credit Card does not have that option. You’re locked into the secured credit card as long as you decide to keep your account open. If you plan for this card to be your first or your oldest credit line, the problem is you’ll be stuck paying the annual fee to keep your oldest credit line open in the future. (Having a longstanding credit account is considered a plus in determining your credit score.)
• Charges an Annual Fee: This card charges a $35 annual fee, which isn’t outrageous for a secured credit card. That said, it is possible to find secured credit cards with no annual fee.
• Must Meet Eligibility Requirements: In order to be eligible for the OpenSky Secured Visa Credit Card, you must meet certain eligibility requirements. They include:
• Being at least 18 years old
• Having a valid Social Security number or Individual Taxpayer Identification number
• Being a U.S. citizen or permanent resident
• Not applying for a Capital Bank credit card four or more times in the previous 60 days
• Not having two or more credit cards open with Capital Bank
• Being in good standing with Capital Bank if you have or previously had a relationship with the bank
• No Credit Card Rewards: This card doesn’t offer credit card rewards, which is true for most secured credit cards. There are rare exceptions, such as the Discover it Secured Credit Card and the Cash Back Secured Credit Card from Bank of America, that allow you to earn cash back on your purchases, though.

The OpenSky Secured Visa Credit Card may be a good option for people looking to start building or rebuilding their credit. In particular, it provides an opportunity for those who can’t access credit due to negative information on their credit report. This card doesn’t check your credit as part of the application process. 

The ability to select your credit limit based on the amount of your refundable deposit, subject to approval, can help you keep your credit utilization under control. That, along with making on-time payments, may help you establish a good credit score.

Cardholder Experience

Capital Bank N.A., the bank that issues the OpenSky Secured Visa Credit Card, was not rated in J.D. Power’s 2020 Credit Card Satisfaction Study. 

There is an OpenSky app you can use to manage your account. However, the OpenSky website doesn’t make it easy to find contact information, which may be a sign of the level of customer service it offers. That contact information is limited to mailing addresses. You should be able to contact customer service by calling the phone number on the back of your card.

Security Features

The security features for this card are standard for the industry.

Fees to Watch Out For

The OpenSky Secured Visa Credit Card charges a $35 annual fee each year you have the card. Since you can’t upgrade to a no-fee unsecured version of this card, take that into account before applying. 

Additionally, you may be charged inactive or dormant account fees of $10 per month if your account is closed and the deposit can’t be returned to your last known address. These fees start at 12 months and 36 months of no activity, respectively, after your deposit is returned to the bank.

Our Verdict

The OpenSky Secured Visa Credit Card may be a good fit if you’re looking for a secured credit card that doesn’t pull your credit when you apply. Because the card reports to all three major credit bureaus, using this card responsibly may help you establish a positive credit history. Additionally, the ability to select your credit limit, subject to approval, by making a refundable deposit of between $200 and $3,000 gives you flexibility to use the card while maintaining a reasonable credit utilization ratio.

This card does charge a $35 annual fee, doesn’t provide credit card rewards, and doesn’t offer an unsecured card you can upgrade to later on. Even so, the card still may be worthwhile until your credit profile allows you to get a more useful credit card. Those who can currently qualify for a no-annual-fee secured credit card or a secured credit card that offers rewards should consider other options before applying.