It’s been a year since I last reviewed the OpenSky Secured Visa Card. Since this card is so popular, I decided to review it again to make sure it’s still accurate. There are just some minor changes, but I reset the publication date so you know how current it is. And I made sure all the generous comments from readers are still in place below.

opensky secured

The APR has inched up a tiny bit, but the APR is still competitive for the secured card market. A few years ago, this card didn’t have a grace period and so I couldn’t recommend it. But the issuer, Capital Bank, made things right and they added a grace period.

And now, the OpenSky secured card not only has a grace period, but it’s a 25-day grace period, which is very generous.  The issuer has also added a tab on the home page–Credit Education–and it offers valuable information about credit and managing your money. Kudos to Capital Bank for promoting financial literacy.

This card isn’t perfect, but one reason it has become so popular with those who are rebuilding their credit is that there’s no credit check. And this has been confirmed by my readers and by the issuer. So you don’t have to worry about an inquiry having a negative impact on your score.

This is right from the home page, in case you are having a hard time believing this: “Whether you are just starting out to build credit, are repairing your credit, or have had a prior bankruptcy, you can qualify for our secured Visa card. We don’t check your credit history.”

And since this bank reports your payment history regularly to all three major credit bureaus, you have an opportunity to reclaim your credit life as long as you use the OpenSky secured card responsibly.

Rates and fees

As I mentioned, the APR on the OpenSky secured card went up a tiny bit, but it’still actually a good rate for a secured credit card.

Related:  Review: Applied Bank Secured Visa Gold Credit Card

Purchase APR: You get a variable rate of 17.64 percent.

Balance transfers: Not applicable.

APR for cash advances: You get the same rate you do for purchases, which is currently 17.64 percent. The transaction fee is 5 percent. Interest on a cash advance starts ticking as soon as transaction hits your account. If you’ve read my reviews before, you know what I’m going to say next, right? Just say no to a cash advance. Seriously, don’t do it.

Penalty Fee: It has gone up a smidgeon to 21.75 percent. You’ll get this rate if you make a late payment. Don’t let this happen to you because it will sabotage your rebuilding efforts. You’ll get an APR increase and if it’s late enough, it will get reported to the bureaus and it will lower your score. Set up reminders or automatic payments.

Annual fee: It’s $35.

Foreign transaction fees: It’s 3 percent, which is within the normal range.

Other fees you need to know about: An inactive account fee is $10 per month after 12 months of no activity. There’s a dormant account fee that’s $10 per month after 36 months of no activity.

Okay, if you aren’t going to use your card anymore, pay off the balance and take steps to close it and get back your security deposit. You can’t graduate to an unsecured card with this issuer because they don’t offer one.

For garnishments/levies, it’s $150 per incident. This issuer is focused on the bad credit market, so they probably do make money when these unfortunate incidents occur.

Security Deposit: A minimum of $200 and a maximum of $3,000, dependent upon approval. This used to go up to $5,000, but I don’t recommend making such a large security deposit anyway. You do not earn interest on the deposit, so don’t put more in the account than you need to.

Credit limit: Your credit limit will be based on your security deposit. If your deposit is $500, your limit will be $500. The annual fee will be charged to your account, so your initial available credit will equal your deposit less the $35 fee.

Related:  Fifth Third Bank Secured Card Review

Credit limit increases: You can call and request a credit limit increase. If it’s approved, you’ll be given instructions for sending an additional deposit. The website says you might have to pay a limit increase fee. It doesn’t say how much the fee is, but it used to be $25, so use that as a guideline. I don’t like fees to increase or decrease your limit.

The bottom line

The OpenSky Secured Visa Card is a good choice for someone who has a recent bankruptcy or who might have a lot of negative items on their credit report. I placed this card in the middle-tier of my list of The Best (and Worst) Secured Credit Cards.

The best way to apply for this card is online. The website is easy to navigate. You can get started right here if you want to apply.

I know that some of you are struggling to get back on your feet financially and you probably can’t get approved for a card if your credit is scrutinized. So I applaud Capital Bank for offering this card and bypassing the credit check. Oh, and no checking account required either. You can fund your account with a money order, if need be. So this is an option for a credit card for unbanked consumers.

Now, I’ve gotten mixed reviews about customer service. Some have complaints, but others had a good experience. If you get this card, I’d love to hear your thoughts about customer service or anything else you’d like to share.

Now, this is a golden opportunity to rebuild your credit. So keep low balances, pay the bill in full by the due date, and be optimistic. Oh, and pay all of your bills on time. Payment history is a huge chunk–35 percent!–of your FICO score. Do a great job with this card and you’ll be back on the road to good credit. You can do it!

Related:  Surge Credit Card Review: Move Along, Folks

Note: Credit card agreements change frequently. So my review is based on the information that I believed to be in effect today. Be sure you read all the disclosure statements carefully before you make a decision.

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