The OpenSky Credit Card makes building credit easy with a simplified sign-up process and no credit check.

Ideally suited for cardholders looking to re-establish good credit, this card features a low annual fee and a low APR. Best of all, the OpenSky Credit Card reports to all three major credit bureaus each month to help you build your credit quickly, enabling you to qualify for better terms when you’re trying to take out an online loan.

This review uncovers the good and the bad of the OpenSky Secured Card to help you decide if it’s right for you.

The Basics

The OpenSky Credit Card is one of the simplest credit cards available.

As a secured credit card, you will be required to provide a security deposit. You choose how much you want to deposit, from $200 up to $3,000. This deposit can be made via money order, check, wire transfer, or debit card. The deposit is fully refundable if you keep up with payments so your investment is never at risk.

Secured credit cards look and function like unsecured credit cards. The only difference is that you’ve fronted a certain amount of money to the credit card company in the event you default on your payments. No one else will know you’re using a secured card.

In addition, this credit card offers fraud protection, zero interest on the first billing cycle, and online financial education to its cardholders.

Requesting an OpenSky Credit Card takes as little as 10 minutes. There is no credit check required, which makes this card an ideal choice for first-time credit card users or those looking to rebuild credit.

The Pros

One of the best things about the OpenSky Credit Card is the lack of credit check required to open an account. It’s a great stepping stone to rebuilding your credit so that you can acquire an unsecured card in the future.

You have control over your credit limit. The amount of your initial deposit is your credit line. For example, if you choose to pay a $1,000 security deposit, then $1,000 becomes your line of credit.

You do have the option to increase your credit line up to $5,000. You will need to provide the appropriate deposit once this option becomes available to you.

If you default on your payments, the bank will use this security deposit as collateral. You will receive a refund of your deposit when you close the account provided your payments are up to date.

Unlike some credit cards, you do not need to have a checking account to qualify for the OpenSky Credit Card.

The OpenSky card does require an annual fee of $35. It’s not the cheapest secured credit card available but it’s also far from being the most expensive. The $35 fee is easily affordable for many budgets, especially when you consider the low 18.39% variable APR and lack of additional fees.

The company reports to all three major credit bureaus on a monthly basis. If you make your payments on time, you’ll see a boost in your credit score in no time.

This card comes with access to online educational resources to help cardholders take control of their credit history. Users also get access to a dedicated newsletter that delivers insightful financial tips and information.

As an added bonus, cardholders get their first billing cycle interest-free. Also, OpenSky offers fraud protection to ensure you don’t experience any unexpected setbacks when trying to rebuild your credit.

The Cons

Because of the card’s simplicity, it doesn’t offer much in terms of features. There are no cash back rewards programs or sign-up bonuses. Rather, this card is all about function over fashion.

The lack of a rewards program isn’t unusual for a secured card. But if you’re looking to use your credit card to save a little on gas, groceries, and other expenses, this isn’t the card for you.

The card’s 18.39% variable APR is fairly low for a secured card, and better than a loan for bad credit. However, keep in mind it is a variable interest rate. If you miss a payment, your rate jumps to 22.50%, plus you’ll be pinned with a $27 late fee.

There is also a 3% foreign transaction fee when you use this card abroad. This fee is in addition to any interest fees you pay. This fee is fairly standard among all credit cards, but not knowing about it can make an unexpected dent in your credit limit.

Being able to set your own credit limit is a huge plus, but the mechanics of doing so can be problematic. You must put down a minimum of $200 to open the credit card. This factor alone makes the bar to entry a little higher than other comparable cards.

Other secured credit cards require lower deposits to qualify for the credit card.

For example, the Capital One Secured Mastercard offers three security deposit options: $49, $99, or $200. In return, you could receive a line of credit between $200 and $3,000. The lower your security deposit, the lower your line of credit.

The Verdict

When it comes to basic secured cards, the OpenSky Credit Card deserves a spot on your shortlist.

Its best features include setting your own line of credit, zero credit check, and the ability to boost your credit score quickly. It’s a great solution to those who are new to credit cards or who need to rebuild their credit history and aren’t able to take out an installment loan.

Because of its zero credit check policy, your chances of acquiring this credit card are pretty high. If you can provide the minimum security deposit of $200, you will likely be approved.

The annual fee of $35 is middle of the road, which makes this card an affordable option for almost any budget.

True, it doesn’t offer a typical rewards program like unsecured credit cards. However, the greater reward is the monthly credit reporting that will help you raise your credit score quickly. All you need to do is remain current on your payments.

There are some comparable cards that require lower minimum security deposits than the OpenSky card or that do not have an annual fee. But this card’s simplicity and accessibility to almost anyone make it one of the preferred choices among secured cards. If you are looking for resources to help find out information about other personal financial services, like quick loans, be sure to check out our finance blog!