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:
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.
This allows you some wiggle room so you don’t go over your credit limit. They recommend spending ⅓ or less of your credit limit each month. You may also want to double-check that your credit information is accurate at least once per year by reviewing your reports. You are allowed to pull your credit report once per year for free. Check for any mistakes and report them to the credit reporting bureaus right away.
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
OpenSky CONS
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
The above review on the OpenSky credit card is based solely on the opinion of Creditnervana. The OpenSky credit card is not just a starter card. It’s an excellent way to boost credit, no matter what your situation is. The card works by assigning you a credit limit based on the amount of money you put down in the form of a deposit. This will be your credit limit and it is given back to you in full once you close your account. Each month, your activity will be reported to the three major credit reporting agencies. This is how you build your credit.
There is a small annual fee of $35 and the APR is 17.39%. You can cancel your account anytime and the deposit will be returned to you if your account is in good standing. Plus, there are no credit checks involved. Users can have bad credit or no credit at all and still be approved. This would make a great credit card for first-time users or experienced credit holders who want to continue to improve their score.
Disclaimer
CreditNervana promises to keep our information as accurate and up-to-date as possible. However, you should always consult a financial advisor for specific questions about personal or business finances and investment opportunities, especially if you are looking in your area. Working with a trained professional who is familiar with your case is a safe and guaranteed way to make the best investment decision possible. Please review our terms and conditions before making any decision based on the information we provide. Financial institutions are constantly changing. Because of this, it’s a good idea to cross check the information you read here with any company you are considering working with.
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