The OpenSky Secured Visa Credit Card doesn’t do credit checks on applicants, so it is a good choice for individuals who want to open a credit card without a hard pull.
The issuer is reporting to all three major credit reporting agencies, so careful use of your card can positively affect your credit record.
The card offers revolving credit limits of $200 to $3,000, depending on the size of your refundable security deposit.
How Does the Open Sky Credit Card Work?
A secured credit card can be a great tool for building credit, whether you’re a new borrower or you have poor credit.
The OpenSky Secured Visa Credit Card is unique in that it does not require a credit check to apply. What that means is bad-credit borrowers or those with short credit histories are accepted. And you won’t pay a hard credit inquiry to your credit report, which will drop your credit score temporarily, when you apply.
Since it is a secured credit card, the OpenSky Secured Visa calls for a refundable cash deposit of between $200 and $3,000 to open a line of credit that will be of your deposit value.
The card costs $35 per year and doesn’t provide many other benefits, so some borrowers can likely get something better. But for those who just want to start somewhere towards being able to fix or build their credit, this card may be okay for them.
What are the Features of the Open Sky Credit Card?
The benefits of OpenSky Secured Visa are no credit check for the applicant, reporting to all three credit bureaus, access to educational resources, and more. The following is the list of those benefits:
One of the best ways to build or rebuild credit is to open a credit card and show lenders you’re able to responsibly manage a loan by making on-time payments for that credit card each month. But applying for a credit card usually requires a hard credit inquiry that can lower, at least temporarily, your already-low credit score.
In order to build a credit history, your financial activity must be reported to the three major credit bureaus. OpenSky Secured Visa can help you with that.
The issuer reports to the three major credit bureaus, so if you use the card responsibly, making at least the minimum payment on time each month and keeping a low balance that positive credit history will appear on your credit reports.
What are the Advantages of the Open Sky Credit Card?
OpenSky offers a choice of learning tools to help borrowers make the most of their credit and learn how credit works and how to improve their credit score.
These tools include an extensive library of personal finance and credit-building information, with real-life narratives on how the card has helped borrowers boost their credit scores.
OpenSky Secured allows you to skip that step of having your credit checked, so you can start establishing your credit without the discouraging ding on your credit from a hard check. It also means that this card may be easier to be approved for compared to other cards if you’re carrying poor credit.
And although some other low-credit-score cards insist on you having a linked bank account in order to apply, that is not so here. If you do not have a bank account, you can pay your security deposit with a Western Union transfer or by sending a check or money order.
Are There Any Disadvantages of the Open Sky Credit Card?
Not Really! The card offers to you a revolving credit limit that changes depending on the value of your security deposit. The ranges begin from $200 and can reach up to a maximum of $3,000, meaning you can have a low or comparatively large credit limit if you can afford to back it with the cash.
Your refundable deposit is insured by the FDIC. This is a promise that the money you invest to secure your line of credit is insured in case the bank fails. But in order to get your deposit, you have to close your account and pay your balance in full.
As a Visa card, the OpenSky Secured comes with all sorts of additional benefits related to it that go beyond what OpenSky offers.
Final Words
OpenSky Secured Visa Credit Card is a bad credit credit card for borrowers who will not be approved for other cards. Since there’s no credit check required, applying will not penalize your score and even those with bad credit are approved for this card.
The OpenSky Secured Visa charges a $35 yearly fee and little else in the way of benefits, though, so you’ll need to shop around a bit more if you’re looking for the best secured card to help you build your credit.
