OpenSky Plus Secured Visa® Credit Card: A No Credit Check Option for Building Credit
Are you looking to build or rebuild your credit, but struggling to get approved for a traditional credit card? The OpenSky Plus Secured Visa® Credit Card may be just the solution you need. This unique card offers a path to better credit without requiring a credit check or even a bank account. Let's take an in-depth look at how this card works and whether it's the right choice for your financial goals.
What is the OpenSky Plus Secured Visa® Credit Card?
The OpenSky Plus Secured Visa® Credit Card is a secured credit card designed specifically for people who want to establish or improve their credit history. Unlike most credit cards, it doesn't require a credit check as part of the application process. This makes it accessible to those with poor credit or no credit history at all.
Here are the key features that make this card stand out:
- No credit check required to apply
- No bank account needed
- $0 annual fee
- Reports to all three major credit bureaus monthly
- Refundable security deposit (minimum $300)
- Potential to earn up to 10% cash back on select purchases
The card functions like a standard Visa credit card, but your credit limit is determined by the security deposit you provide. This deposit, which starts at $300, acts as collateral and reduces the risk for the card issuer.
Who is the OpenSky Plus Secured Visa® Credit Card For?
This card is an excellent option for several types of consumers:
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People with damaged credit: If past financial mistakes have hurt your credit score, this card offers a fresh start without judgement based on your credit history.
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Credit newcomers: For those just beginning to build their credit profile, this card provides an accessible entry point into the world of credit.
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Individuals without traditional banking relationships: Since no checking account is required, this card can work for those who rely on alternative financial services.
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Anyone wanting to avoid credit checks: Whether you're concerned about hard inquiries impacting your score or simply prefer privacy, the no-credit-check feature is appealing.
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Budget-conscious consumers: With no annual fee, this card is more affordable than many other secured credit card options.
Pros and Cons of the OpenSky Plus Secured Visa® Credit Card
Let's break down the advantages and disadvantages of this card:
Pros:
- No annual fee: This saves you money compared to many secured cards that charge yearly fees.
- No credit check required: Your application won't be denied based on your credit history.
- No checking account needed: This opens doors for the unbanked or those with limited banking history.
- Reports to all three major credit bureaus: Your responsible card use can help build your credit across all major scoring models.
- Cash back potential: Earn up to 10% cash back on select purchases, a rare feature for secured cards.
- Flexible payment due dates: Choose a due date that aligns with your payday or budget cycle.
- Installment option for security deposit: Spread your deposit over 60 days if needed.
- Free FICO score access: Monitor your credit progress easily.
Cons:
- Higher minimum security deposit: The $300 minimum is steeper than some competitors.
- High APR: At 29.24% Variable, carrying a balance can be costly.
- Foreign transaction fee: A 3% fee applies to purchases made abroad.
- Limited upgrade options: There's no clear path to graduate to an unsecured card with this issuer.
- Maximum credit limit cap: You can't get a credit line above $3,000, which may be limiting for some users.
How the OpenSky Plus Secured Visa® Credit Card Compares to Other Options
To understand if this card is right for you, it's helpful to see how it stacks up against similar options:
OpenSky Plus vs. Original OpenSky Secured Visa®
The main difference here is the annual fee. The Plus version eliminates the $35 annual fee found on the original card. However, it does require a higher minimum deposit ($300 vs. $200). If you can manage the higher deposit, the Plus card offers better long-term value.
OpenSky Plus vs. Discover it® Secured
The Discover it® Secured offers more robust rewards (2% cash back at restaurants and gas stations, 1% on all other purchases) and the possibility of upgrading to an unsecured card after 7 months. However, it requires both a credit check and a bank account to apply. The OpenSky Plus is more accessible but less rewarding for everyday spending.
OpenSky Plus vs. Capital One Platinum Secured
Capital One's offering may provide a lower initial deposit for some applicants and better upgrade paths within their ecosystem. However, it does require a credit check. The OpenSky Plus remains the better choice for those adamant about avoiding credit checks or those without a bank account.
Key Features and Benefits of the OpenSky Plus Secured Visa® Credit Card
Credit Building Opportunities
The primary purpose of this card is to help you build or rebuild your credit. Here's how it supports that goal:
- Monthly reporting to credit bureaus: Your account activity is reported to Equifax, Experian, and TransUnion each month, ensuring your responsible use is reflected in your credit reports.
- Free FICO score access: Keep tabs on your progress by checking your FICO score for free.
- Proven results: OpenSky reports that two-thirds of cardholders see a 48+ point improvement in their credit scores after just three months of on-time payments.
Flexible Security Deposit Options
While the security deposit is a requirement, OpenSky offers some flexibility:
- Deposit range: You can choose a deposit amount between $300 and $3,000, which then becomes your credit limit.
- Installment payments: If coming up with the full deposit at once is challenging, you can opt to pay it in installments over 60 days.
- Multiple payment methods: Deposits can be made via debit card, wire transfer, Western Union, or mailed check or money order.
- Fully refundable: When you close your account in good standing, you'll receive your full deposit back.
Digital Wallet Integration
For added convenience, the OpenSky Plus card works with major digital wallet platforms:
- Apple Pay
- Samsung Pay
- Google Pay
This allows for contactless payments and easier online shopping with supported merchants.
How to Make the Most of Your OpenSky Plus Secured Visa® Credit Card
To maximize the benefits of this card and improve your credit, follow these tips:
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Use the card regularly, but responsibly: Make small purchases and pay them off in full each month to build a positive payment history without incurring interest charges.
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Set up automatic payments: Ensure you never miss a due date by scheduling automatic payments from your bank account.
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Keep your credit utilization low: Try to use no more than 30% of your available credit limit to positively impact your credit score.
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Monitor your credit score: Take advantage of the free FICO score access to track your progress and identify areas for improvement.
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Consider increasing your deposit: If your financial situation allows, a higher deposit (and thus higher credit limit) can help keep your credit utilization lower.
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Look for cash back opportunities: While not the card's primary feature, take advantage of any cash back offers that align with your regular spending.
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Use the card for recurring bills: Set up small, regular payments (like a streaming service subscription) to build consistent positive payment history.
Understanding the Costs: Fees and Interest Rates
While the OpenSky Plus Secured Visa® has no annual fee, it's important to be aware of other potential costs:
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APR: The card carries a high variable APR of 29.24%. This makes it crucial to pay your balance in full each month to avoid costly interest charges.
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Foreign Transaction Fee: There's a 3% fee on purchases made outside the United States. If you travel internationally often, this may not be the best card for those trips.
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Late Payment Fee: Up to $41 for late payments. This underscores the importance of making payments on time, both for your wallet and your credit score.
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Returned Payment Fee: Up to $25 if a payment is returned unpaid.
The Application Process: What to Expect
Applying for the OpenSky Plus Secured Visa® is straightforward:
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Visit the OpenSky website: Navigate to their online application page.
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Provide personal information: You'll need to enter details like your name, address, Social Security number, and income.
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Choose your security deposit: Decide how much you want to deposit, starting at the $300 minimum.
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Fund your deposit: Select your preferred method for providing the security deposit.
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Wait for approval: Decisions are typically instant, and you can usually complete the entire process in under 5 minutes.
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Receive your card: Once approved, your card will be mailed to you, typically arriving within 7-10 business days.
Remember, there's no credit check involved, so you don't need to worry about that impacting your application or credit score.
Maximizing Rewards with Kudos
While the OpenSky Plus Secured Visa® isn't primarily a rewards card, you can potentially boost your earnings by using it in conjunction with Kudos, a free AI-powered browser extension. Kudos helps users maximize credit card rewards by suggesting the best card to use for each online purchase.
By linking your OpenSky Plus card to Kudos, you might discover additional cash back opportunities you weren't aware of. Kudos even offers exclusive "Flash Boost" events where you can earn up to 5X the usual rewards on certain purchases.
As an added incentive, new Kudos users can currently earn $20 back after their first eligible purchase by signing up with the code "GET20". This can be a nice bonus as you work on building your credit with the OpenSky Plus card.
Expert Takeaway: Is the OpenSky Plus Secured Visa® Right for You?
The OpenSky Plus Secured Visa® Credit Card offers a solid option for credit building, especially for those who might be excluded from traditional banking products. Its standout features – no credit check, no bank account requirement, and no annual fee – make it one of the most accessible credit-building tools available.
However, the higher minimum deposit and steep APR are notable drawbacks. If you have the ability to qualify for other secured cards with lower deposits or better rewards, those might be worth considering.
Ultimately, the OpenSky Plus shines brightest for those who:
- Have been denied other credit cards due to poor or limited credit history
- Want to avoid credit checks at all costs
- Don't have a traditional bank account
- Can manage the $300 minimum deposit
If you fit into one or more of these categories and are committed to responsible credit use, the OpenSky Plus Secured Visa® could be your ticket to a stronger financial future. Remember, the key to success with any secured card is consistent, on-time payments and keeping your balance low relative to your credit limit.
By following these principles and leveraging the card's credit-building features, you can work towards improving your credit score and eventually qualifying for even better financial products down the road.
Frequently Asked Questions
Q: What credit score is needed for the OpenSky Plus Secured Visa® Credit Card?
A: No minimum credit score is required, as there's no credit check during the application process.
Q: How long does it take to get approved for the OpenSky Plus Secured Visa® Credit Card?
A: Approval decisions are typically instant, and you can apply in less than 5 minutes from your mobile device.
Q: Can I increase my credit limit on the OpenSky Plus Secured Visa® Credit Card?
A: Yes, you can be considered for a credit line increase after six months of responsible card use. This would require an additional security deposit.
Q: Is the security deposit refundable?
A: Yes, the security deposit is fully refundable when you close your account in good standing.
Q: How does the installment payment option work for the security deposit?
A: You can make minimum payments of $25 over a 60-day period to reach your required security deposit amount.
Q: Does the OpenSky Plus Secured Visa® Credit Card offer a grace period on purchases?
A: Yes, there is a grace period of at least 21 days on purchases if you pay your entire balance by the due date each month.
Q: Can I use this card internationally?
A: Yes, it's accepted wherever Visa is accepted worldwide. However, be aware of the 3% foreign transaction fee.
By understanding these details and using the OpenSky Plus Secured Visa® Credit Card responsibly, you can take meaningful steps towards building or rebuilding your credit, opening doors to better financial opportunities in the future.