Understanding the OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card is a popular choice among individuals looking to build or rebuild their credit. Unlike traditional credit cards, this secured card requires a refundable security deposit, which acts as your credit limit. Whether you’re starting your credit journey or working to improve a less-than-perfect credit score, the OpenSky® Secured Visa® offers a straightforward, accessible option.

Key Features of the OpenSky® Secured Visa® Credit Card

1. No Credit Check Required

One of the standout features of the OpenSky® Secured Visa® Credit Card is that it does not require a credit check for approval. This means that your credit history, whether limited or damaged, will not impact your ability to qualify for this card. Instead, your approval is based on your ability to make the security deposit, which makes it an ideal choice for individuals with poor or no credit history.

2. Refundable Security Deposit

To open an account, you’ll need to provide a refundable security deposit. This deposit acts as your credit limit. The minimum deposit starts at $200, but you can choose to deposit more (up to $3,000) if you want a higher credit limit. This flexibility allows you to manage your spending and credit-building efforts more effectively.

3. Annual Fee

The card comes with a $35 annual fee. While this might seem like a downside, it’s relatively low compared to other secured credit cards. This fee is deducted from your available credit, so it’s important to factor it into your initial budget when opening the account.

4. Reporting to Major Credit Bureaus

OpenSky reports your account activity to all three major credit bureaus—Equifax, Experian, and TransUnion—on a monthly basis. This is crucial for building or rebuilding your credit. By making on-time payments and keeping your balance low relative to your credit limit, you can steadily improve your credit score over time.

5. Variable APR

The card has a variable APR of 22.39% (as of the latest update). While this rate is somewhat higher than some unsecured cards, it is fairly typical for secured credit cards. It’s important to pay your balance in full each month to avoid interest charges and maximize the benefits of using this card.

6. No Checking Account Required

Unlike many other credit cards, the OpenSky® Secured Visa® doesn’t require you to have a checking account to apply. This can be a major advantage for individuals who may be in the process of getting their finances back on track and do not have access to traditional banking services.

7. Easy Application Process

Applying for the OpenSky® Secured Visa® Credit Card is straightforward and quick. Since there’s no credit check, the approval process is much faster compared to traditional credit cards. Once you’ve made your security deposit, your card will be issued, and you can begin using it to build your credit.

How the OpenSky® Secured Visa® Credit Card Works

The OpenSky® Secured Visa® Credit Card works like any other credit card but with one key difference: the requirement of a security deposit. Here’s how it functions:

1. Security Deposit: After your application is approved, you’ll need to provide a security deposit. This deposit will be equal to your credit limit. For example, if you want a $500 credit limit, you’ll need to deposit $500. This deposit is held in a secure account and is refundable when you close your account, provided your balance is paid in full.
2. Credit Limit: Your credit limit will be equal to the amount of your security deposit. You can use your card to make purchases up to this limit. Your spending and payment behavior will be reported to the credit bureaus, which is essential for building your credit history.
3. Monthly Payments: Like any other credit card, you will be required to make at least the minimum payment by the due date each month. To build credit effectively, it’s best to pay off your balance in full and on time each month. This not only helps avoid interest charges but also shows responsible credit usage.
4. Credit Reporting: OpenSky reports your payment history and account activity to the three major credit bureaus. Positive behaviors, such as making on-time payments and maintaining a low balance, can help improve your credit score over time.
5. Graduation to Unsecured Credit: While the OpenSky® Secured Visa® Credit Card doesn’t automatically graduate to an unsecured card, it can be a stepping stone. As your credit improves, you may become eligible for unsecured credit cards with better terms and rewards.

Benefits of Using the OpenSky® Secured Visa® Credit Card

1. Build or Rebuild Your Credit: The primary benefit of the OpenSky® Secured Visa® is its ability to help individuals build or rebuild their credit. With regular reporting to the credit bureaus, responsible use of this card can lead to significant credit score improvement over time.
2. No Credit Check: The absence of a credit check makes this card accessible to a wide range of applicants, including those with bad or no credit history.
3. Flexibility in Deposit: You have the option to choose your credit limit based on the amount of your security deposit. This flexibility allows you to manage your credit utilization ratio more effectively, which is an important factor in your credit score.
4. Educational Resources: OpenSky provides cardholders with access to various educational resources, including credit-building tips and tools. These resources can help you better understand how to manage your credit and achieve your financial goals.
5. Customer Service: OpenSky is known for its responsive customer service, which can be a crucial support as you navigate the credit-building process.

How to Apply for the OpenSky® Secured Visa® Credit Card

Applying for the OpenSky® Secured Visa® Credit Card is a simple and straightforward process. Here’s how you can do it:

1. Visit the OpenSky Website: Start by visiting the OpenSky® Secured Visa® Credit Card official website. Here, you can find detailed information about the card, including its features, fees, and benefits.
2. Complete the Application Form: The application form will require basic information such as your name, address, social security number, and income. Since there’s no credit check, the approval process primarily hinges on your ability to provide the required security deposit.
3. Choose Your Deposit Amount: During the application process, you’ll be asked to choose the amount of your security deposit. This will determine your credit limit. The minimum deposit is $200, but you can deposit more if you want a higher credit limit.
4. Submit Your Deposit: Once you’ve chosen your deposit amount, you’ll need to submit it using a debit card, money order, or other approved methods. This deposit will be held in a secure account and will serve as collateral for your credit line.
5. Wait for Approval: After submitting your application and deposit, you’ll typically receive a decision within a few days. Since there’s no credit check, the approval process is relatively quick.
6. Receive and Activate Your Card: Once approved, your OpenSky® Secured Visa® Credit Card will be mailed to you. Upon receiving it, you’ll need to activate the card before you can start using it.
7. Use Your Card Responsibly: To make the most of your OpenSky® Secured Visa® Credit Card, use it responsibly. Make sure to pay your bill on time each month, keep your balance low, and avoid maxing out your credit limit. Over time, these habits will help you build a positive credit history.

Final Thoughts

The OpenSky® Secured Visa® Credit Card is a powerful tool for those looking to build or rebuild their credit. With no credit check required, a flexible security deposit, and consistent reporting to the major credit bureaus, it offers a viable pathway to improving your financial standing. While it does come with an annual fee and lacks some of the perks of unsecured cards, its benefits for credit building are substantial.

If you’re serious about improving your credit and are willing to commit to responsible use, the OpenSky® Secured Visa® Credit Card could be the right choice for you. Start your application today and take the first step toward a stronger financial future.