The OpenSky® Secured Visa® Credit Card fills a specific niche in the credit card market—it's designed for people who need to build or rebuild credit but can't qualify for traditional secured cards due to poor credit or lack of a bank account. While it's not the most feature-rich option available, it serves its purpose well for those who truly need its unique accessibility features.

Quick Verdict: The OpenSky® Secured Visa® Credit Card is best for people who can't qualify for other secured cards due to damaged credit or lack of a traditional bank account. However, if you can qualify for alternatives like secured cards with better terms, you'll likely find better value elsewhere.

OpenSky® Secured Visa® Credit Card Quick Facts

Major Benefits and Features

No Credit Check Required

The OpenSky® Secured Visa® Credit Card's biggest selling point is that it doesn't require a credit check for approval. This makes it accessible to people with severely damaged credit, recent bankruptcies, or no credit history at all. According to OpenSky, they maintain an 89% approval rate.

This feature is particularly valuable for people who have been denied by other secured card issuers. Even secured cards from major banks typically perform some level of credit screening, which can exclude the very people who need credit building tools the most.

No Bank Account Requirement

Unlike most credit cards, the OpenSky® Secured Visa® doesn't require you to have a traditional bank account. You can fund your security deposit and make monthly payments using money orders or Western Union payments. While this adds convenience fees to your costs, it provides access to credit for the unbanked population.

Reports to All Three Credit Bureaus

The card reports your payment history, credit utilization, and account status to Experian, Equifax, and TransUnionmonthly. This comprehensive reporting is crucial for building credit effectively, as your positive payment history will be recorded across all major credit scoring models.

Flexible Security Deposit

Your security deposit can range from $200 to $3,000, and this amount becomes your credit limit. OpenSky offers a layaway option that lets you spread your deposit over 60 days, though you must complete the full payment within this timeframe or reapply.

Standard Visa Benefits

Despite being a secured card, you'll receive standard Visa benefits including fraud protection, zero liability for unauthorized purchases, and worldwide acceptance. The physical card doesn't indicate it's secured, so there's no stigma when using it.

Detailed Value Analysis

When This Card Makes Sense

The OpenSky® Secured Visa® Credit Card serves a specific population that other cards simply don't accommodate. If you've been denied for other secured cards or don't have access to traditional banking, this card provides a genuine path to credit building.

For people rebuilding after bankruptcy, foreclosure, or other major credit events, the lack of credit screening can be the difference between having access to credit and being completely shut out of the system. The $35 annual fee, while not ideal, is relatively modest for the access it provides.

The Reality of Credit Building

OpenSky claims that about 66% of cardholders see their credit scores increase by an average of 41 points within three months. While individual results vary, the card can be effective for credit building when used responsibly.

To maximize credit building potential:

• Keep your utilization below 30% of your credit limit
• Pay your balance in full each month to avoid interest charges
• Make all payments on time, as payment history accounts for 35% of your credit score
• Monitor your credit reports regularly to track progress

Limited Rewards and Perks

The OpenSky® Secured Visa® doesn't offer a traditional rewards program. However, it does provide access to OpenSky Rewards, which offers up to 10% cash back at select merchants. You must activate offers in advance through the OpenSky app or website, limiting its usefulness compared to automatic rewards programs.

Pros and Cons

Pros

• No credit check required - 89% approval rate regardless of credit history
• No bank account needed - Accessible to the unbanked population
• Reports to all three credit bureaus - Comprehensive credit building potential
• Flexible deposit amounts - Choose your credit limit from $200-$3,000
• Standard Visa benefits - Fraud protection and worldwide acceptance
• Upgrade path available - Potential invitation to OpenSky Gold Visa® unsecured card

Cons

• $35 annual fee - Most secured cards don't charge annual fees
• No welcome bonus - Missing the sign-up incentives of competitor cards
• Limited rewards program - Requires manual activation of merchant offers
• High APR - 24.64% variable rate makes carrying balances expensive
• 3% foreign transaction fee - Costly for international travel
• Limited upgrade benefits - The unsecured card isn't particularly compelling

Who Should Consider This Card

Ideal Candidates

• People denied by other secured card issuers due to poor credit
• Individuals without bank accounts who need access to credit
• Recent bankruptcy filers looking to rebuild credit immediately
• People with no credit history who want to establish credit without a credit check
• Those prioritizing approval odds over card features and benefits

Who Should Look Elsewhere

• People who can qualify for no-fee secured cards with better terms
• Rewards seekers looking to earn points or cash back on spending
• Travelers who need cards without foreign transaction fees
• People with fair credit who might qualify for unsecured cards

If you have fair credit (scores above 580), consider starting with the Chase Sapphire Preferred® Card for travel rewards or the Blue Cash Everyday® Card from American Express for cash back without an annual fee.

How It Compares to Alternatives

vs. Other Secured Credit Cards

Many secured credit cards offer superior terms if you can qualify for them:

• No annual fees vs. OpenSky's $35 fee
• Generous rewards programs with automatic cash back
• Clear upgrade paths with automatic account reviews
• Same minimum deposit requirements in many cases

However, these alternatives typically require some level of credit screening, which might exclude people who need OpenSky's accessibility.

vs. Capital One Secured Cards

Capital One offers competitive secured card options:

• No annual fee makes them cheaper to hold long-term
• Lower minimum deposits (as low as $49 for some applicants)
• No foreign transaction fees for international use
• Potential for higher APRs depending on creditworthiness

Capital One also performs credit checks, though they're more lenient than traditional banks.

Upgrade Path Considerations

OpenSky offers the possibility of upgrading to their OpenSky® Gold Visa® unsecured card, but this card is also fairly basic with limited benefits. This differs from other secured cards that can upgrade to more feature-rich products with better rewards and benefits.

How to Maximize Value

Smart Usage Strategies

1. Start with the minimum deposit ($200) to test the card and minimize tied-up funds
2. Set up automatic payments to ensure you never miss a payment
3. Keep utilization low by using less than 30% of your credit limit
4. Pay in full monthly to avoid the 24.64% APR
5. Monitor your credit using free credit monitoring services to track improvement

Building Toward Better Cards

Use the OpenSky® Secured Visa® as a stepping stone to better credit products:

• After 6-12 months of responsible use, check if you qualify for no-fee alternatives
• Consider applying for rewards cards once your score reaches the mid-600s
• Explore travel rewards cards like the Capital One Venture Rewards Credit Card when your credit improves further

Cost Management

The annual fee and potential money order fees can add up. Budget approximately $50-60 annually in fees if you use money orders for payments. Consider this cost as an investment in your credit future.

Application Process and Requirements

Basic Requirements

• Minimum age: 18 years old
• Valid Social Security number
• Proof of income sufficient to make minimum payments
• U.S. mailing address
• Security deposit between $200-$3,000

Application Steps

1. Complete the online application at OpenSky's website (typically takes less than 5 minutes)
2. Receive instant decision in most cases
3. Fund your security deposit within 60 days if using the layaway option
4. Receive your card within 7-10 business days
5. Activate your card and begin building credit

What to Expect

Most applicants are approved instantly. OpenSky doesn't perform employment verification for most applications, making the process streamlined compared to traditional credit cards.

Frequently Asked Questions

Can I get my security deposit back?

Yes, your security deposit is fully refundable when you close your account in good standing or upgrade to an unsecured card. The deposit doesn't earn interest while held.

How quickly will I see credit score improvements?

Most cardholders see initial improvements within 3-6 months of responsible use. OpenSky reports that 66% of users see an average 41-point increase within three months.

Can I increase my credit limit?

Yes, you can request credit limit increases every six months with additional security deposits. Some increases may be granted without additional deposits based on your payment history.

What happens if I miss a payment?

Late payments are reported to all three credit bureaus and can damage your credit score. You'll also be charged a late fee of up to $41.

Can I use this card internationally?

Yes, the card works wherever Visa is accepted, but you'll pay a 3% foreign transaction fee on all international purchases.

Is there a way to avoid the annual fee?

No, the $35 annual fee is required for all cardholders and is charged annually on your account anniversary.

Alternative Recommendations

If you can qualify for other secured cards or have improved credit, consider these options:

For Rewards Seekers

Look for secured cards that offer cash back rewards and no annual fees, making them superior for most people who can qualify.

For Future Travel Plans

Once your credit improves, the Capital One Venture X Rewards Credit Card offers premium travel benefits and high rewards rates for frequent travelers.

For Simple Cash Back

The Blue Cash Everyday® Card from American Express provides solid cash back rates with no annual fee once you qualify for unsecured cards.

For Building Credit History

Check out our comprehensive guide on how to build credit fast for additional strategies beyond secured credit cards.

Final Verdict

The OpenSky® Secured Visa® Credit Card serves a crucial role for people who have been shut out of traditional credit markets. While it's not the most attractive secured card in terms of fees and features, it provides genuine access to credit building for people who need it most.

Choose this card if: You've been denied by other secured card issuers, don't have a bank account, or need guaranteed approval to start rebuilding credit immediately.

Skip this card if: You can qualify for no-fee alternatives with better rewards programs or already have fair credit that might qualify you for unsecured options.

The $35 annual fee is a small price to pay for credit access if this card is your only option. Use it responsibly for 6-12 months, then reassess whether you can qualify for better alternatives as your credit improves.

Remember, the goal isn't to keep this card forever—it's to use it as a stepping stone to better credit and more rewarding credit cards. With responsible use, you can build the credit foundation needed to qualify for cards with the best credit card offers, better benefits, and no annual fees.

For more insights on credit building strategies and card comparisons, explore our comprehensive credit card reviews to find the perfect card for your next step in your credit journey.