OpenSky Credit Card Review

By: Heather Hanks May 06, 2020

OpenSky credit card is a great way to build your credit if you have one or repair damaged credit. You can also use it to continue to improve good credit. There is no credit check needed to apply, but you’ll have to put down a refundable security deposit. The card operates like a traditional Visa credit card with low annual fees.

Your activity will be reported to all three major credit reporting agencies, which is a great way to boost credit. Plus, you get to set the credit limit. Go as low as $200 or as high as $3,000. It takes less than five minutes to apply and you can be on your way to better credit in no time! Check out our OpenSky credit card review below.

What is the OpenSky Credit Card?

The OpenSky credit card is offered by Capital Bank, which is a publicly-traded bank whose headquarters is located in Rockville, MD. Capital Bank has been a trusted name providing financial services since 1999. They service businesses and clients in the Washington metropolitan area. OpenSky is a nationwide mortgage business and credit card company operated by Capital Bank. It is an FDIC-insured, equal housing lender.

The OpenSky credit card is a secured card. This means you will need to put a refundable security deposit down that is equal to your credit card limit to secure your account. For example, if you put down a security deposit of $200, then you will have a credit limit of $200. This amount is refundable and helps ensure that you can open an account without a credit check. A security deposit allows you to open an account even if you have no credit or damaged credit. OpenSky will hold the security deposit as long as you have the card. It will be put into an FDIC-insured account and returned to you after you close your account. It’s the banks way of determining your trustworthiness that is usually dictated by a credit score.

Secured cards are a great way to build credit, especially if you are a first-time credit user. They work similarly to an unsecured card. OpenSky will report your credit activity to the three major credit reporting agencies. This is crucial for building your credit because it will be noted on your credit report every time you make a timely payment. Having a long history of making timely payments will boost your credit score. Having too many late or missed payments on your report will negatively affect your score. For this reason, it’s important to set a credit limit within your means. You can use this card to establish credit if you have none or help repair damaged credit.

How Does OpenSky Work?

The OpenSky secured credit card works like any other credit card. You’ll be assigned a credit limit based on your security deposit and expected to pay your monthly dues in full on time. Then you can use it to make everyday purchases with. When you pay your bill on time, this activity is reported to the three major credit reporting agencies and will positively influence your credit score. You can enroll in automatic email alerts to remind you when a payment is due.

The OpenSky credit card is not just a starter card. It delivers all of the benefits of a Visa card, including fraud protection, worldwide acceptance, and more. No one but you will know that it’s a secured card. You can manage your account online and pick your credit limit. Annual fees are $35 and your APR for ongoing purchases and balance transfers is $17.39%. There are no other hidden fees to be aware of, aside from late fees or returned payments. However, these payments are standard with most credit cards.

Here are some important facts to know about the OpenSky credit card:

Annual fee: $35

APR (for ongoing purchases and balance transfers): 17.39%

Minimum interest charge: $1.00

Transaction fees: $6 or 5% of cash advances and 3% of foreign transaction fees in US dollars

Penalty fees: up to $38 for late fees and up to $25 for returned payments

By collecting your security deposit, the OpenSky credit card allows you to set your own credit limit. If your goal is to rebuild your credit with OpenSky, then the company recommends that you use your card little by little each month. Specifically, the company suggests using ⅓ of your available credit each month. This ensures that you will not go over your budget and will be able to make payments on time. Many people use their card to pay for small purchases, such as a quick lunch, or to pay a bill they need to pay anyway, such as your phone bill. All of your actions will be reported and will contribute to your credit history. Make it count!

What Does OpenSky Offer?

The OpenSky credit card offers an opportunity to boost your current credit or improve damaged credit without a credit check. You can also use it to establish credit if you have none. You can use it as a starter card or as a standard Visa card. The OpenSky credit card is ideal because it is accepted anywhere Visa is. Plus, you’ll get the same discounts that a Visa cardholder does, including shopping, food and wine, and entertainment perks. Click here for a complete list of Visa offers and perks.

OpenSky’s credit card offers a low annual fee of $35. The APR is based on the prime rate. The deposit that you make when opening your account is fully refundable. If you have bad credit or even no credit at all, then you can still get a credit card through OpenSky. It can be used as a traditional card to boost your credit as long as you make good financial decisions. Your deposit will be kept in an FDIC-insured bank account and will be returned to you in full after you close your account. If you owe any money at the time your account is closed, then OpenSky will take this out of your deposit and you will not get it back. The process is similar to renting an apartment.

Here is what you can expect from the OpenSky credit card:

  • Low annual fees ($35) and no other hidden costs, including application costs or yearly dues
  • You can choose your own credit limit, depending on how much you put down in your security deposit
  • You don’t need a checking account or even a credit score to open an account
  • Your APR is determined by the prime rate and not your credit history
  • Your activity will be reported to all three major credit bureaus, not just one or two
  • The card is accepted all over the world and comes with Visa benefits, such as fraud protection and identity theft protection
  • You can use your card for everyday purchases or for paying your bills without changing your monthly limit
  • Your security deposit is refundable and can range from $200 to $3,000

You can also add an authorized user onto your OpenSky credit card account. Keep in mind that you are ultimately responsible for the account if you add someone to it. This means that their activity may show up on your credit report. Your account can be closed anytime. You will receive your deposit back as long as your account is in good standing within six weeks. Your account can be accessed anytime online using the OpenSky app. You can use it to change your due date, modify your terms, and even cancel.

How To Build Your Credit With OpenSky

OpenSky can help you build your credit by offering you a credit card with complete flexibility. You get to choose your credit amount and term. It’s simple to use and works quickly. For every month that you are an OpenSky account holder, the company will report your information. After several months of making payments on time, you should start to see this information reflected on your credit report.

With an OpenSky credit card, you can increase your credit limit as needed. Not many other credit cards allow you this flexibility. Your security deposit directly affects the amount you’ll be able to use. To build your credit, OpenSky recommends you pay your bills on time, every time. You’ll also need to pay your balance in full and don’t charge all the way up to your credit limit.

Here are some other tips to boost your credit with OpenSky:

● Don’t take out more than you need to spend

● Make every single payment on time and adjust your credit limit as needed

● Use revolving credit to pay your higher balances and don’t spend more than ⅓ of your credit limit per month

OpenSky Credit Card: Pros and Cons

The OpenSky credit card has many uses. It’s a great first-time card for someone who is new to the credit world. You are in total control of your payments and there is no credit check required. For this reason, many people with bad credit or no credit at all will find it appealing. It’s one of the easiest ways to build credit out there. You may not like that it’s a secured card, but this money is refundable once you close your account.

You’ll also like that there are no hidden fees tied to this card. Your annual fee and APR are the same, regardless of your creditworthiness. You can choose your credit limit of $200 to $3,000 and keep your account open as long as you’d like. You may want to consider another card if you’re looking for cash back rewards or don’t have to worry about getting rejected due to bad credit. Here are some other pros and cons to consider before applying for the OpenSky card.

OpenSky PROS

  • There is a low annual fee of $35 with no hidden fees
  • There is no credit check required (an inquiry won’t show up on your credit report when you apply)
  • You can get approved if you have bad credit or no credit
  • Your security deposit is 100% refundable (as long as you don’t owe on any payments when you close your account)
  • Your card is accepted anywhere Visa is and comes with Visa security features, perks, and discounts
  • OpenSky reports to all three major credit reporting agencies and not just one or two
  • OpenSky is a division of Capital Bank, an FDIC-insured bank that you can trust
  • You can opt for email alerts to let you know when your dues are coming up
  • Applying takes less than five minutes and there are only four steps
  • You can adjust your monthly due dates and other terms online
  • You can use your card for small purchases or to pay larger bills
  • You can manage your account online through the free app
  • You can cancel your account or increase your credit limit anytime

OpenSky CONS

  • The APR for ongoing purchases and balance transfers is above 17%. This number is based on the prime rate. However, if you have good credit, then you may want to seek another card with a lower rate. You may also wish to seek another card if you’re looking for cash back or travel rewards. Keep in mind that the OpenSky credit card is a secure card that doesn’t require a credit check. If you have excellent credit, you might be able to find better rates elsewhere.

How To Apply OpenSky Credit Card

The application process is quick and can be done in less than five minutes. Because OpenSky does not check your credit, you don’t need to worry about this credit card inquiry showing up on your credit report. Too many inquiries can negatively affect your score. There are four easy steps you need to take to apply for an OpenSky credit card.

Here is what you’ll need to provide:

1

Personal information

Your full name and email address

2

Address and contact details

Home address and phone number

3

Financial and security information

Annual income, monthly housing payment, monthly housing payment type, social security number, date of birth, security word (this will be used when you log into your account for added security)

4

Agreements

You must agree to the terms and conditions, including annual fee, APR, penalty fees, and other terms

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