Introduction to the Opensky Credit Card
Trying to build up your credit from scratch – or recovering from a couple of financial missteps at any point throughout your life – can be a major headache and hassle, a hurdle that most people find almost impossible to clear all on their own.
It certainly doesn’t help that because of the mid-2000s credit crunch and Great Recession that most traditional banks and credit card companies are more than a little bit skeptical about handing out ANY financing to folks that have less them rock solid credit and amazing credit history already under their belts.
With the folks at OpenSky, however, you aren’t going to have to bump up against any problems getting your credit started or rebuilding and recovering your credit in the future.
Instead, you will be able to get your hands on a pretty decent secured credit card in the form of the OpenSky credit card – though there might be more attractive options available out there as well.
Let’s dig a little bit deeper into what this card offers and where it falls short.
The number one thing that helps to separate this OpenSky credit card from the rest of the pack is that you aren’t going to have to go through ANY credit check whatsoever to apply – and you also do not have to have a bank account to qualify for cardholder membership.
This is quite a bit different than almost any other credit card you will find on the market today, even those that offer secured credit establishments/rebuilding benefits. The majority are going to want you to have (at the very least) a bank account but that isn’t going to be an issue with OpenSky.
The fact that there isn’t going to be a credit check necessary to get your hands on this credit card, either, is something that you don’t want to sleep on. OpenSky understands that every time your credit “gets hit” with a new inquiry the overall score goes down and that is in and of itself pretty counterintuitive when folks are looking to get their credit in better shape.
To start off with this card you’re going to need to deposit at least $200 minimum. That’s going to act as your credit limit, though you have the opportunity to add as much money on top of that initial $200 minimum deposit to improve your credit limit as often as you like.
There is an ability to “reload” your credit card and expand on your limit as often as you have the opportunity to do so. Because this card reports to all three of the major credit bureaus it’s not a bad idea to load it up as often as you are able to, expanding your credit limit while keeping your charges on the card low.
This gives you a chance to take advantage of “low utilization” on your card – one of the biggest factors in rebuilding and reestablishing your credit just as quickly as humanly possible.
On the flip side of things, you are going to have to pay a pretty hefty annual fee to take advantage of this card. Again, that isn’t similar to how other secured cards in the industry operate – at least not those from other reputable credit card organizations. There are some fly-by-night operations that will charge you for an annual fee (usually much more than what the folks at OpenSky are charging), but it’s commonplace to find no annual fee secured cards from big names in the industry.
The ongoing APR that you’ll have to pay on any of your balances that you carry over from month to month is also pretty high. We’ll dig a little bit deeper into that in just a moment, but it’s a good idea with any secured card – or any entry-level card, really – to pay off your balances as quickly as you can to avoid dealing with any interest and to improve your score quickly.
The biggest advantage of the OpenSky credit card has to be the fact that you don’t ever have to worry about a credit check being run and ruining your odds of getting your hands on this card at any point in time.
Folks with bad credit, no credit, or credit that has recently taken a turn for the worst will find themselves routinely tripped up by credit inquiries when they are looking to apply for new cards. OpenSky runs absolutely no inquiry whatsoever, helping you avoid that inquiry hit on your score and also guaranteeing that you stand a fantastic shot of being approved.
Approval isn’t automatic, however. You’ll need to have a regular income and a security deposit to get your card started. As long as those pieces of the puzzle are good to go, however, you will be off to the races.
Another highlight for folks looking to build credit is that they do not have to have a bank account to take advantage of this credit card offer, either. You will be able to pay your security deposit through a money order or a Western Union payment if you do not have a bank available. You can use money orders to pay for your credit card bill as well.
Those that do have a bank account are going to find it a lot easier to use the credit card from OpenSky, but it’s nice to know that even those without an account are able to get their hands on some plastic to get their credit going.
Lastly, the fact that this card reports to all three of the major credit reporting bureaus – the bureaus responsible for calculating your credit score in the first place – is a huge bonus. Some of the other secured cards out there will only report to a couple of the major bureaus (if they report at all), never helping your score grow over time.
That won’t be a problem with this credit card.
On the flip side of things, if you do not have a bank account ready to go with this card you’re going to end up spending a lot of money on money orders or Western Union transfers – and those fees are going to pile up faster than you ever would have thought possible.
Secondly, the $35 annual fee necessary to get your hands on this card is a little bit steep. There are other cards from other companies that have no annual fee whatsoever. Sure, some companies have even higher annual fees, but the existence of reputable companies with no fees make stop making a $35 annual charge a bit of an issue for most.
The fact that there isn’t any path to upgrade this card into an unsecured card is another issue that folks aren’t going to appreciate. By the time your credit improves enough to qualify for an unsecured card you’ll either have to close down this account (which hurts your overall credit score) or choose to keep this card open and dormant – all while paying that $35 fee every single year.
The $200 minimum deposit to gain access to a $200 credit limit is a solid deal, but not the best. Some other cards will let you get a $200-$300 credit line with a $49-$99 deposit. That obviously helps you with your finances a little, though it may not be a make-or-break issue for those serious about getting their credit headed in the right direction.
The OpenSky credit card is an offer that includes absolutely zero rewards or bonuses whatsoever.
What you see is very much what you get with this card, which is to be expected. This is a secured card, after all, and these kinds of cards are not known at all for included reward points and bonuses (though there are a couple of cards that give cashback after a year as long as all payments were made on time).
Right out of the gate, you’ll end up spending at least $35 a year every year you are going to keep this card open. That is the highest cost of ownership for a credit card to be sure, but it is least expensive option there, either.
Interest rates are going to start compounding if you keep a balance on your card, with no 0% APR “grace period” to take advantage of the weight areas with some other cards on the market. Instead you will be dealing with a 19.64% variable APR with any of your balances that roll over – which is why it is such a good idea to pay off your monthly balance before that interest hits at all.
If you need a secured credit card that will not force you to run a credit, and if you need a secured credit card that is available without having any banking set up already, this is where you are going to want to focus your attention.
If you aren’t necessarily dependent on either of those two factors, however, you’re probably going to want to at the very least research your other secured card options before you pull the trigger on this deal specific from OpenSky.