It’s been a long time since I 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. And I made sure all the generous comments from readers are still in place below.
I did discover that the APR has gone down 0.11 percent. Not much, but at least it’s going in the right direction. 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 OpenSky not only has a grace period, but it’s a 25-day grace period, which is a very generous one. The issuer has also added a tab on the home page–Credit Education–and it offers valuable information about credit and managing your money. I rarely see such a positive change when I review cards, so kudos to Capital Bank for taking care of its customers.
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 card responsibly.
Rates and fees
As I mentioned, the APR on the OpenSky card went down a tiny bit. It’s actually a good rate for a secured credit card.
Purchase APR: You get a variable rate of 17.39 percent.
Balance transfers: Not applicable.
APR for cash advances: You get the same rate you do for purchases, which is currently 17.39 percent. The transaction fee is 5 percent. Note that interest on a cash advance starts ticking right away. If you’ve read my reviews before, you know what I’m going to say next, right? Don’t get a cash advance unless your life depends on it. And even then, make this your last resort.
Penalty Fee: It’s 21.50 percent. You’ll get this rate if you make a late payment. Set up reminders or automatic payments. 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.
Annual fee: It’s $35. Alas, this is a $6 increase, but we’ll let this slide since there’s no credit check!
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. 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 from 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.
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 great 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.
This card fills a market need. Some of you are struggling to get back on your feet financially and know 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.
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 of your FICO score. Do a great job with this card and you’ll be back on the road to good credit.
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.