I originally reviewed the Open Sky Secured Credit Card last August. I noted that the card had a good interest rate, but I had to give it a thumbs down because it didn’t have a grace period. Well, I have some good news about that.
I heard from Capital Bank, the issuer of the Open Sky secured card, last week and they’ve added a grace period! Kudos to Capital Bank for taking care of this problem. Folks who are trying to rebuild their credit need a card that gives them a chance to charge items and pay it off without having to pay interest. Now, the Open Sky secured card has a 25-day grace period, which is a very generous one!
This bank reports your payment history regularly to all three major credit bureaus, so that’s awesome. And this is also important to know: Capital Bank does not check your credit score or pull your credit report. This means it won’t impact your score and it won’t show up as an inquiry on your report.
Rates and fees
The APR went up, but it’s still not too bad for this category. And the annual fee went down, so that’s good news.
Purchase APR: You get a variable rate of 17.50 percent. Not bad.
Balance transfers: You get a variable 17.50 percent APR. The balance transfer fee is 5 percent, which is on the high side.
APR for cash advances: You get the same rate you do for purchases, which is currently 17.50 percent. The transaction fee is 5 percent. Note that interest on a cash advance starts ticking right away.
Annual fee: $29
Foreign transaction fees: It’s 3 percent, which is within the normal range.
Expedited card fee: It’s $50 and I think this is a waste of money.
Security Deposit: A minimum of $200 and a maximum of $5,000. 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 credit limit will equal your deposit less the $29 fee.
Credit limit increases: After the first year you can request a credit limit increase. You pay $25 each time you either increase or decrease the funds in your account. So if you decide to decrease your own credit limit, you’ll have to pay $25 for the privilege. I don’t like fees to increase or decrease your limit.
The bottom line
I’m really thrilled that the Open Sky Secured Credit Card added a grace period. I’m promoting this card from the Bottom Tier of secured cards to the Middle Tier. I don’t like the $25 fee for credit limit increases and decreases, but I give Capital Bank a virtual round of applause for adding the grace period and reducing the annual fee.
On my list of The Best (and Worst) Secured Credit Cards, the Open Sky Secured Credit Card moves up from #18 in the Bottom Tier to #14 in the Middle Tier.
Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully before you make a decision.