OpenSky works best if you need to build credit from scratch and can afford a cash deposit upfront

The OpenSky Secured Visa Card is a secured credit card — you put down a cash deposit between $200 and $20,000, and that deposit becomes your credit limit. You then use the card like any other Visa, and the issuer reports your payment history to all three credit bureaus. The card charges an annual fee of $35, has no rewards, and carries a variable interest rate (currently around 19.99% APR, though this varies). It works if you have no credit history, a very low credit score, or a recent bankruptcy, and you can cover the deposit without hardship.

The card does not work well if you already have access to unsecured cards, if you cannot afford to lock up several hundred dollars, or if you are looking for cash back or travel rewards. There are other secured cards with lower annual fees or better terms, and there are unsecured cards available to people with fair credit. The decision comes down to your actual credit situation and what you can afford to pay upfront.

Key Takeaways

  • OpenSky requires a cash deposit of $200 to $20,000 that becomes your credit limit, so you need liquid savings to use this card.
  • The $35 annual fee and roughly 20% APR make this card expensive to carry a balance on, so it works best if you pay the full statement balance each month.
  • OpenSky reports to all three credit bureaus, which means on-time payments will build your credit history, but the same is true of cheaper secured cards.
  • You can move to an unsecured card after 6 to 18 months of on-time payments, at which point you get your deposit back, but other issuers offer the same path with lower fees.

How the deposit and credit limit work

Your deposit is held in a savings account at the bank that issues OpenSky. It is not spent — it sits there as collateral. If you stop paying the card, the bank can take the deposit to cover what you owe. Your credit limit equals your deposit amount, so a $500 deposit gives you a $500 limit. You can request a higher limit after six months of on-time payments, and the bank may increase it without requiring an additional deposit.

The deposit earns no interest. You cannot withdraw it while the account is open. If you close the card or are denied for graduation to an unsecured card, you get the deposit back, but it takes 5 to 7 business days to arrive. This means your money is locked up for the entire time you hold the card — typically 6 to 18 months if you are building credit and then moving to an unsecured option.

Annual fees and interest rates compared to other secured cards

OpenSky's $35 annual fee is higher than some competitors. The Capital One Secured Mastercard charges no annual fee in the first year and $39 after that. The Discover it Secured charges no annual fee at all. If you plan to hold the card for a year or two while building credit, that $35 per year adds up — $70 for two years is money that does not go toward your credit-building effort.

OpenSky's APR of roughly 19.99% is in line with other secured cards for people with poor or no credit. Capital One and Discover charge similar rates. The APR matters only if you carry a balance — if you pay the full statement balance every month, you pay no interest. But if you do carry a balance, you are paying roughly $100 per year in interest on a $500 balance, plus the $35 annual fee. That is expensive.

The real advantage OpenSky has is that it does not require a credit check or a Social Security number. If you have no credit history or a very recent bankruptcy, some other secured cards may decline you. OpenSky's approval standards are looser. If you can get approved for Capital One or Discover, those are usually better choices. If you cannot, OpenSky may be your option.

How OpenSky reports to credit bureaus and what that means for your score

OpenSky reports your payment history to Equifax, Experian, and TransUnion every month. This is the same as any other credit card. On-time payments build your score; late payments hurt it. There is nothing special about OpenSky's reporting — it is standard practice for credit cards.

What matters is consistency. If you make on-time payments for 6 to 12 months, your score will likely improve by 50 to 100 points, depending on where you started and what else is on your credit report. A bankruptcy or collection account will still drag your score down, but the new positive history will gradually outweigh it. Again, this is true of any credit card — OpenSky is not faster or better at building credit than Capital One or Discover.

When OpenSky makes sense and when it does not

OpenSky makes sense if: you have been denied for other secured cards, you have no credit history and no other options, or you need a card quickly and OpenSky approves you when others do not. It also works if you have $200 to $500 in savings you can lock up without affecting your emergency fund or monthly bills.

OpenSky does not make sense if: you have fair credit (a score of 580 or higher) and can get approved for an unsecured card instead, you cannot afford to lock up the deposit, you plan to carry a balance and pay interest, or you want rewards or cash back. In those cases, look at unsecured cards for fair credit, or a different secured card with a lower annual fee.

The path from OpenSky to an unsecured card

After 6 to 18 months of on-time payments, you can request that OpenSky convert your account to an unsecured card. The bank will review your payment history and may approve the conversion. If approved, your deposit is returned to you, and your credit limit may increase. You no longer pay the annual fee on the unsecured version.

This is a real benefit — you get your deposit back and move to a card with no annual fee. However, other issuers offer the same path. Capital One and Discover also graduate secured cardholders to unsecured accounts. The difference is that you will have paid $35 or $70 in annual fees to OpenSky by that point, whereas Capital One charges nothing in year one and Discover charges nothing at all.

Alternatives to consider before choosing OpenSky

If you have no credit history or a very low score, compare OpenSky to the Capital One Secured Mastercard and the Discover it Secured before deciding. Both report to all three bureaus, both graduate to unsecured cards, and both have lower or no annual fees. If you are approved for either, they are usually the better choice.

If you have fair credit (a score around 580 to 669), look at unsecured cards first. The Capital One Quicksilver One and the Discover it Secured (unsecured version) may approve you without a deposit. You avoid locking up cash and still build credit. If you are denied for unsecured cards, then move to secured options.

If you have been through a recent bankruptcy or have active collections, you may have fewer options. In that case, OpenSky's loose approval standards are an advantage. But still check Capital One and Discover first — they may surprise you.

Frequently Asked Questions

Can I get my deposit back before closing the card?

No. Your deposit stays in the account as long as the card is open. You can request a credit limit increase after six months, but that does not return your deposit — it just raises your limit. You get the deposit back only when you close the account or graduate to an unsecured card.

What happens if I miss a payment on OpenSky?

A missed payment is reported to all three credit bureaus and damages your credit score. OpenSky may charge a late fee (typically $25 to $35). If you miss multiple payments, the bank can take money from your deposit to cover what you owe. This defeats the purpose of building credit, so set up automatic payments for at least the minimum.

Does OpenSky offer any rewards or cash back?

No. OpenSky is a basic secured card with no rewards program. You earn no cash back, no points, and no travel benefits. If rewards matter to you, this card is not the right choice. Some unsecured cards for fair credit do offer small cash back rewards.

How long does it take to graduate from OpenSky to an unsecured card?

OpenSky does not publish a specific timeline, but most cardholders see a conversion offer after 6 to 18 months of on-time payments. There is no may provide — it depends on your credit history and how your score improves. You can request a review after six months, but the bank makes the final decision.

Is OpenSky a real bank, or is it a scam?

OpenSky is a real bank — Opensky Inc., a federally chartered bank. It is regulated by the Office of the Comptroller of the Currency. The card is a legitimate Visa. It is not a scam, but it is an expensive option compared to other secured cards, so compare before you choose.