OpenSky® Secured Visa® Credit Card Review 2018
Any with bad or no credit that wants to build their credit should look into the OpenSky Secured Visa credit card. Originally designed and targeted toward people who wanted to rebuild their bad credit, this card is very popular. It remains popular today, and it has several pros and cons associated with it. If you’re trying to rebuild your credit, read on. We’ve compiled a review of the Open Sky Visa so you can decide if this card is a good fit for you.
OpenSky Secured Visa Credit Card Pros and Benefits
1. No Bank Account Needed to Open an Opensky Secured Visa Credit Card
Many credit cards require a banking account when you sign up. This can add additional steps to the application process, and complicate it. However, the Open Sky credit card doesn’t require a bank account. This is a secured credit card, and this means that you send the lender a deposit. This deposit becomes your line of credit. It stays in the account until you close it. If you’ve demonstrated responsible use, you’ll get your deposit back. You can fund your initial deposit by debit card, wire transfer, Western Union, or by mail with a money order.
2. Flexibility to Choose the Initial Deposit Amount
Since it’s your money that funds your Open Sky secured credit card, you pick your deposit amount. The lowest amount you can choose is $200, and it goes up to $3,000. This is great if you don’t have a lot of extra money, but you want to build your account. Simply choose one of the four ways to send in your deposit, and you’re ready to go. If you choose a debit card, you’ll get an instant application process. Mailing your funds could take up to five days.
3. No Hard Credit Check
If you have poor or no credit, a hard credit check can really hurt. However, the OpenSky Secured Visa credit card believes that everyone should have a chance to build credit. You won’t have a hard credit check when you apply for this card. You’ll simply pay your deposit and start using your card as you see fit. You don’t need a credit history, just a stable job.
4. Generous Grace Period
Not only do you get a credit card grace period to pay your bill, but it’s a generous one. With the Open Sky Visa, you get a 25 day grace period. This means that if life gets in the way and you need more time to pay your bill, you have it. There won’t be a penalty until after you go over this grace period. This is great for anyone who’s learning how to manage their finances.
5. Optional Credit Education
The Open Sky credit card gives cardholders credit education information. All you have to do is go to your OpenSky page and click Resources. This will take you to their help page which gives free credit building advice. You can find out how to request copies of your credit history, how to use your card to build credit, and more. It gives you the tools you need to understand why building your credit is a good idea. You also get debt managing strategies.
6. OpenSky Secured Visa Credit Card Reports to the Three Major Credit Bureaus
Building your credit is only good if all three major credit card bureaus get it. OpenSky reports to Equifax, Experian, and TransUnion. These are largely considered to be the main credit companies. OpenSky will report to them each month, and this increases your credit history. Also, using your credit card responsibly and paying the balance off each month will show dependability. This can make lenders more willing to work with you when you ask for a loan or an unsecured credit card.
OpenSky Secured Visa Credit Card Cons and Drawbacks
1. Annual Fee
Even though this is a secured credit card, you’ll pay an annual fee. This fee will appear on your first statement of the new billing year. Currently, you’ll pay $35 per year to use this card. While this isn’t extremely high if you don’t use the card a lot you’d have a hard time justifying it.
2. Inactive Card Fee
This is the one fee you want to avoid at all costs with the OpenSky Secured Visa credit card. If you don’t use your card for 12 consecutive months, it’ll start charging $10 per month. This is your first inactive card fee. It’ll keep adding another $10 on per month until you use your card. Also, there’s a dormant account fee of $10 per month after 36 months of no activity. So, if you pick up your card after 24 months of no use, you’ll be in the hole $120.
3. Penalty APR
While you do have a grace period to pay your balance, it only lasts 25 days. After this 25 days, if you haven’t paid your balance, your APR will rise. The APR is 18.39%, but the penalty APR is 22.50%. If you avoid carrying a balance, this isn’t a big deal. But if you do, the additional 4.11% interest fees can quickly add up. Also, you’ll have to work to get your original interest rate back. You have to pay six consecutive on-time payments to get the regular interest rate back. If you miss one, it starts over with a new six months.
4. Additional Fee to Increase Your Credit Limit
Say you want to raise your initial credit limit a few months after you open the card. The OpenSky Secured Visa credit card will allow you to do this. But, you’ll pay the price for increasing your rate. In addition to the additional deposit money, you’ll pay between $25 to $35 for processing fees. The lender adds this in each time you want to increase your spending limit.
5. OpenSky Secured Visa Credit Card Has no Unsecured Card Options
Once you’re satisfied with your credit score, you can move to an unsecured card. Unfortunately, the Open Sky secured credit card is it. OpenSky doesn’t have an unsecured credit card available. This means that you’ll have to compare other credit card companies that offer bad credit card applications. It also means you have to be very careful and read any new company’s terms and conditions. These vary from company to company, and it’s a fast way to wreck your credit.
People Who Would Benefit From an OpenSky Secured Visa Credit Card
If your credit score is around 620 and below, this card could be a good idea. If you’re just starting out, it’s excellent to build credit. Anyone who needs to rebuild credit after bankruptcy could benefit from this card. The fact that the lender makes it so easy to get the card opens the door for a lot of people. Choosing your initial deposit is nice too because it caters to people who don’t have a lot of extra money.
People Who the OpenSky Secured Visa Credit Card Would Hinder
If you have a higher credit score, avoid this card. If you know how to manage your finances and can get other cards, avoid this card. It won’t do a lot for you in terms of raising your score. An unsecured card with responsible use will be a lot more beneficial to helping your maintain your score. So if you have average credit you should look at credit card applications for fair credit.
Bottom Line OpenSky® Secured Visa® Credit Card Review 2018
When you use it responsibly, the OpenSky Secured Visa credit card is a powerful credit-building tool. It’s an excellent way to help you learn to manage your finances. It also gives you less room for error because there’s a very restricted spending limit. If you have low or no credit, it’s a good idea to consider the Open Sky Visa seriously. You’ll build your credit, and learn about credit cards at the same time.
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