The OpenSky Secured visa credit card is a great option for people looking to build credit. Back by Capital Bank, OpenSky has carved out a unique place in the market. OpenSky's most attractive feature is that customers are able to get approved without a hard credit inquiry. That means that even if you have no credit or bad credit you can still get approved.
How does a secured card work? You'll need to put down cash as a security deposit to get a line of credit. You will be able to open an account with as little as $200, or go all the way up to $3,000. We recommend opening the biggest line of credit you can. The amount of credit you have access to plays a big role in your overall credit score, so the more you have the better. Your security deposit serves as a safeguard to OpenSky in the event that you aren't able to pay your monthly bill. Your security deposit is held in an FDIC-insured account. The full amount is returned to you after your account is closed or upgraded to a regular credit card.
Speaking of upgrading... once you’ve reached a credit score of 699 or higher, you have the option to upgrade your secured card to a normal credit card with a higher credit limit and no security deposit. This means that you'll get your original security deposit back. The OpenSky card will report to all three credit bureaus each month. The company is very transparent about wanting to work with you to build your credit score so you can reach that 699 credit score.
As far as fees are concerned, OpenSky is pretty competitive on the market. You'll see an annual fee of $35 with an APR of 19.14% variable. Late payments will result in a $27 fee, while returned payments will set you back $25. Another fee worth mentioning is the $10 inactivity fee. If your card is inactive for more than 12 months you'll be hit with a fee, so don't open this one and forget about it. You can see a complete breakdown of fees here.
Maybe. There are two other viable options for a secured card (in our opinion).
Both of these cards will use a hard credit pull in order to approve you, so there is a chance you will be declined. You'll have to weigh your comfort level with that risk before you apply.
Definitely. If you're looking to build credit, you should also take a look at Self Lender. Self Lender is a savings plan that builds credit by reporting monthly payments to the credit bureaus. Once you've reached your savings goal, you'll receive a check from the company. It's an excellent option when paired with a secured credit card. Self Lender reports as an installment account, so it will help with the types of credit you have access to. This makes up 10% of your overall credit score. There are reports of users improving their credit score by over 100 points!