What OpenSky Does and Who It's Built For

OpenSky is a secured credit card that requires a cash deposit to open an account. You deposit money into a savings account held by the card issuer, and that deposit becomes your credit limit — if you deposit $500, your limit is $500. The card reports to all three credit bureaus (Equifax, Experian, TransUnion), so payments you make show up on your credit report and can help build or rebuild credit history.

The card is designed for people with no credit history, a damaged credit history, or a very low credit score. It is not a rewards card and does not offer cash back or points. It is a tool for demonstrating that you can use credit responsibly over time, with the goal of moving to an unsecured card later.

OpenSky does not run a hard inquiry on your credit report when you apply, which means applying will not lower your credit score. This is unusual among credit cards and makes it accessible to people who have been denied elsewhere.

Key Takeaways

  • OpenSky requires a cash deposit equal to your credit limit, so you must have money available upfront and will not have access to it while the account is open.
  • The card charges an annual fee of $35 to $95 depending on the version you choose, which is higher than most secured cards from banks.
  • Interest rates on OpenSky cards range from 18.9% to 24.9% APR, which is typical for secured cards but means carrying a balance is expensive.
  • OpenSky reports to all three credit bureaus, so on-time payments build your credit history, but late payments will damage it the same way.
  • The card has no rewards, no cash back, and no sign-up bonus, so it is purely a credit-building tool, not a spending card.

Costs You Pay to OpenSky

OpenSky charges an annual fee that varies by card version. The standard card costs $35 per year. The OpenSky Plus card costs $95 per year. Both versions charge the same interest rate range (18.9% to 24.9% APR), so the higher fee does not buy you a lower rate.

If you carry a balance, interest accrues daily on the outstanding amount. At the higher end of the rate range, a $500 balance costs roughly $10 per month in interest alone. The annual fee is charged once per year, usually on your account anniversary or at the time you open the account.

There are no foreign transaction fees, no late fees, and no over-limit fees listed in the terms. However, if you miss a payment, OpenSky will report the late payment to the credit bureaus after 30 days, which will lower your credit score. A payment 60 days late or more will cause additional damage.

How Your Deposit Works and What Happens to It

When you open an OpenSky account, you choose how much to deposit, between $200 and $2,500. That money goes into a savings account held by the card issuer. Your credit limit equals your deposit amount. You cannot withdraw the deposit while the account is open — it stays locked as collateral.

The deposit earns no interest. You are paying the annual fee and interest on purchases while your own money sits in an account earning nothing. This is the cost of access to a credit card when you cannot get one through traditional means.

If you close the account in good standing (no late payments, no outstanding balance), OpenSky returns your deposit to you. If you have an outstanding balance when you close, OpenSky may apply your deposit to that balance. If you default on the account, OpenSky keeps the deposit and may pursue collection action for any remaining debt.

When OpenSky Makes Sense

OpenSky is worth considering if you have been denied for credit cards from banks or other issuers, or if your credit score is below 550. The lack of a hard inquiry means you can apply without further damaging your score, and approval does not depend on your credit history — only on your ability to make the deposit.

The card is also useful if you need to report activity to the credit bureaus quickly. OpenSky reports monthly, so each on-time payment shows up on your report within 30 to 45 days. If you are rebuilding credit and need to show recent positive activity, this timeline matters.

OpenSky can also work if you plan to use the card for small, regular purchases and pay the full balance each month. A $500 deposit with $50 in monthly charges paid in full costs you only the $35 annual fee and builds your credit history with no interest charges.

When OpenSky Is Not the Best Choice

If you have access to a secured card from a bank — such as Capital One Secured, Discover Secured, or U.S. Bank Secured — those cards usually have lower annual fees ($0 to $25) and lower interest rates (16% to 18% APR). The difference in cost over a year is real: a bank secured card might cost $25 annually while OpenSky costs $35 to $95.

OpenSky is also not the right choice if you cannot afford to lock up your deposit for the time it takes to build credit. Most people need 6 to 12 months of on-time payments before they can move to an unsecured card. If you need that money during that period, you will have to close the account and lose the credit-building benefit.

If you already have a credit score above 600 and have been turned down only by premium card issuers, a regular unsecured card from a bank or credit union is likely available to you. OpenSky is designed for people with very limited credit options, not for people with moderate credit damage.

How to Use OpenSky to Actually Build Credit

Opening the card is not enough — how you use it determines whether your credit score improves. Make a small purchase each month (even $10 to $20), then pay the full balance before the due date. This creates a record of on-time payments, which is the single largest factor in your credit score (35% of the score).

Do not carry a balance to "show you can pay interest." That is expensive and unnecessary. Credit bureaus care about whether you pay on time, not about how much interest you pay. Paying in full each month costs you only the annual fee and builds your score faster than carrying a balance.

Keep the account open even after your credit improves enough to get an unsecured card. Closing it will shorten your average account age, which can lower your score temporarily. Instead, keep the OpenSky card open with occasional small purchases, or stop using it but leave it active. The longer your credit history, the better your score.

Alternatives to OpenSky

Capital One Secured Card charges $0 annual fee, has a 21.9% APR, and requires a $200 to $2,500 deposit. It reports to all three bureaus and has no hard inquiry. The main advantage over OpenSky is the $0 fee.

Discover Secured Card charges $0 annual fee, has a 16.99% APR (lower than OpenSky), and requires a $200 to $2,500 deposit. It also offers 1% cash back on all purchases, which OpenSky does not. The combination of no fee, lower rate, and cash back makes it a stronger choice if you can get approved.

U.S. Bank Secured Card charges $0 annual fee, has a 16.99% APR, and requires a $300 to $10,000 deposit. It reports to all three bureaus and has no hard inquiry. Like Discover, it offers cash back (1% on all purchases).

If you have access to a credit union, ask about their secured card options. Many credit unions offer secured cards with lower fees and rates than OpenSky, and some have no annual fee at all. Credit union cards are often easier to move to unsecured status once your credit improves.

Frequently Asked Questions

Does OpenSky do a hard inquiry?

No. OpenSky does not run a hard inquiry on your credit report, so applying will not lower your credit score. This is one of the few credit cards that works this way, which makes it accessible to people who have been denied elsewhere.

Can I get my deposit back?

Yes, if you close the account in good standing (no late payments, no outstanding balance), OpenSky returns your deposit. If you have an unpaid balance when you close, OpenSky may apply the deposit to that balance. Keep the account open and active to avoid this situation.

How long does it take to move from OpenSky to a regular credit card?

Most people need 6 to 12 months of on-time payments before they can move to an unsecured card. After that period, you can apply for a regular card from a bank or credit union. Some people receive upgrade offers from OpenSky itself after 6 months, though the terms vary.

What happens if I miss a payment?

A payment 30 days late will be reported to the credit bureaus and will lower your credit score. A payment 60 days late or more causes additional damage. The late payment stays on your report for seven years. Missing payments defeats the purpose of using the card to build credit.

Is the annual fee worth it?

Only if you cannot get approved for a card with no annual fee. Capital One Secured, Discover Secured, and U.S. Bank Secured all charge $0 annually and have lower interest rates. If you have been denied by those issuers, OpenSky may be your only option, and the fee is the cost of access.