How To Use The OpenSky Secured Visa Credit Card

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A secured credit card can be a great option for building credit, whether you’re an inexperienced borrower or you have a troubled credit history.

The OpenSky® Secured Visa® Credit Card is notable in that it doesn’t require a credit check in order to apply. That means even borrowers with a bad credit score or short credit histories can qualify. Plus, you won’t add a hard credit inquiry to your credit report, which would temporarily ding your credit score, when you apply.

As a secured credit card, the OpenSky Secured Visa requires a refundable cash deposit of between $200 and $3,000 to establish a line of credit that will be equal to your deposit amount.

The card charges a $35 annual fee and doesn’t come with many other benefits, so some borrowers may be able to qualify for better options. But for those looking for a place to start on their journey toward building or repairing their credit, this card could be a good fit.

We cover how the card works and how to maximize its features.

Features of the OpenSky Secured Visa Credit Card

The OpenSky Secured Visa’s features include no credit check for applicants, reporting to all three major credit bureaus, access to educational resources and more. Here’s a breakdown of those features:

No credit check or linked checking account required

One of the most attractive features of this card is that it doesn’t require a credit check.

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.

OpenSky Secured allows you to skip that credit inquiry step, so you can get started on improving your credit without the discouraging ding to your credit caused by a hard inquiry. It also means this card may be easier to get approved for than other cards if you have a low credit score.

And unlike some other cards catering to those with lower credit scores, you don’t need a linked bank account to apply, either. If you don’t have a bank account, you can fund your security deposit with a Western Union transfer or by mailing a check or money order.

Credit reporting

To build a credit history your financial activities have to be reported to the three main credit bureaus.

OpenSky Secured Visa can help with that. The issuer reports to all three major credit bureaus, so if you use the card responsibly — making at least the minimum payment on time each month and keeping your balance low — that positive credit history will appear on your credit reports.

Still, keep in mind that any missteps, such as a missed payment or a high balance, will also be reported.

Educational resources

OpenSky offers a variety of educational resources to help borrowers better understand how credit works and how they can improve their credit score. This includes a robust library of credit building and personal finance content, including real stories about how using the card has helped borrowers raise their credit scores.

High potential credit limit

The card comes with a flexible credit limit that depends on the size of your security deposit. Amounts range from $200 to as high as $3,000, so you can have a small or relatively large credit limit as long as you have the cash to back it up.

FDIC insured deposit

Your refundable deposit is FDIC insured. This means the funds you use to secure your credit line are protected from bank failure. However, you’ll only receive your deposit back if you close your account and pay your balance in full.

Other Visa credit card benefits

As a Visa card, the OpenSky Secured comes with a variety of associated benefits that go above and beyond those offered by OpenSky itself. Some of these include:

• Worldwide card acceptance
• Fraud protection
• Lost or stolen card reporting
• Pay-per-use roadside dispatch service

Quick and easy application process

According to OpenSky, it takes just a few minutes to apply for the card. There are only a few steps in the application process — and since there’s no need for a credit check, borrowers can potentially be approved right away.

Maximizing the OpenSky Secured Visa Credit Card

There are a few things to keep in mind in order to get the most out of the OpenSky Secured Visa Credit Card.

1. Stay focused on your credit-building goal. Yes, a credit card offers convenience and the opportunity to make purchases when you don’t immediately have the cash on-hand. But keeping your focus on building your credit will remind you to only use the card for small purchases and pay it off each billing cycle. You’re looking to build credit, so make a budget you can stick to and don’t use the card to spend beyond your means.
2. Understand credit utilization. Credit utilization is the amount of credit you’re using compared to the amount of credit you have, and it’s a significant factor impacting your credit score. Common advice is to keep your credit usage below 30 percent. If you make the minimum security deposit of $200 to establish a $200 line of credit, that means you should put no more than $60 on your OpenSky Secured Card at any time (and, ideally, you stay below that).
3. Pay on time, every time (and in full, possible). Your best option is to set up automatic payments for the full statement balance. That way you always pay on time, which is great for your credit score, and you also avoid racking up interest. The next best option is to set up auto pay for at least the minimum amount due. You’ll still be showing responsible card management, but you will also accrue interest on any unpaid balances.

Bankrate’s take: The OpenSky Secured Visa is best viewed as a stepping stone to bigger and better cards. It’s great for building credit, but eventually you can benefit from moving on to cards that earn rewards or come with additional perks and fewer fees.

The bottom line

The OpenSky Secured Visa Credit Card is a worthwhile credit card for bad credit option for borrowers who may not qualify for other cards. Since there’s no credit check required, applying won’t hurt your score — and even applicants with poor credit are likely to be accepted for this card.

The OpenSky Secured Visa card comes with a $35 annual fee and few additional benefits, though, so you should also research other options if you’re looking for the best secured card to help you build your credit.