What the OpenSky Card Does and Doesn't Do
The OpenSky Secured Card is a secured card that reports to all three credit bureaus and charges no annual fee. You deposit money into a savings account, and that deposit becomes your credit limit—so a $500 deposit gives you a $500 limit. You use the card like any other credit card, and your payment history shows up on your credit report.
What makes OpenSky different from other secured cards is that it does not require a credit check to open the account. That matters if your credit is damaged or nonexistent. The card also does not have a minimum deposit requirement—you can start with $200 if that is what you have. Most other secured cards require $500 or $1,000 minimums.
What OpenSky does not do: it will not rebuild your credit faster than any other secured card. It will not waive the deposit if you miss a payment. It will not convert to an unsecured card automatically after a set time—you have to request conversion, and approval is not may provide. If you are looking for a card that will turn into a regular credit card on its own, this is not it.
Key Takeaways
- OpenSky has no annual fee and no credit check, making it accessible if your credit is new or damaged.
- Your deposit is held as collateral and becomes your credit limit, so you control how much you want to risk.
- The card reports to all three bureaus, meaning on-time payments will show up on your credit report.
- You will pay interest on purchases if you carry a balance, and the APR is higher than unsecured cards—currently around 19.99%.
- Conversion to an unsecured card is possible but not automatic, and you must request it after demonstrating responsible use.
How the Deposit and Credit Limit Work
When you open an OpenSky account, you choose how much to deposit. That money goes into a savings account held by the card issuer. Your credit limit equals your deposit amount. If you deposit $300, your limit is $300. If you deposit $1,000, your limit is $1,000.
The deposit stays in the savings account the entire time you hold the card. You cannot touch it to pay your bill or withdraw it on a whim. The card issuer holds it as security in case you stop paying. Interest accrues on the deposit at a rate that varies—currently around 0.01% APY, which is minimal.
One practical point: because there is no minimum deposit, you can start small and test the card before committing more money. Many people open OpenSky with $200 or $300, use it for a few months, and then decide whether to increase the deposit later.
Interest Rates and Fees You Will Actually Pay
OpenSky charges no annual fee, which is a real advantage over some secured cards. However, you will pay interest if you carry a balance from month to month. The current APR is 19.99%, which is higher than most unsecured cards but typical for secured cards aimed at people rebuilding credit.
There are no other regular fees: no foreign transaction fees, no late fees, no over-limit fees. If you pay your full balance by the due date each month, you pay nothing except the deposit itself. If you carry a balance, you pay interest on that balance at the 19.99% rate.
Late payments do not trigger a fee, but they will hurt your credit report and may cause the card issuer to close your account. Missing a payment is the fastest way to undo the credit-building work you are doing with this card.
How OpenSky Compares to Other Secured Cards
| Feature | OpenSky | Capital One Secured | Discover Secured |
|---|---|---|---|
| Annual Fee | None | $0 | None |
| Credit Check Required | No | Yes | Yes |
| Minimum Deposit | $200 | $200 | $200 |
| Current APR | 19.99% | 26.99% | 19.99% |
| Reports to All Three Bureaus | Yes | Yes | Yes |
| Automatic Conversion | No | No | No |
The biggest difference is the credit check. Capital One and Discover both run a hard inquiry, which temporarily lowers your credit score. OpenSky does not, which makes it the only choice if you have no credit history or if you are trying to minimize additional inquiries.
The APR is competitive—OpenSky and Discover are tied at 19.99%, while Capital One is higher at 26.99%. If you plan to carry a balance, the lower rate matters. If you pay in full each month, the APR is irrelevant.
None of these cards convert automatically. All three require you to request conversion and meet their internal standards. Discover has a reputation for converting customers more readily, but there is no may provide with any of them.
When OpenSky Makes Sense for You
OpenSky is the right choice if you have no credit history or if your credit is too damaged to pass a credit check. It is also the right choice if you want to avoid another hard inquiry on your report—each inquiry can lower your score by a few points, and if you have already applied for other cards recently, another inquiry might hurt more than it helps.
OpenSky also works well if you want to start with a small deposit and grow it over time. Because there is no minimum, you can open the account with $200, prove you can use credit responsibly for six months, and then add $300 more to increase your limit.
OpenSky is not the right choice if you know you will carry a balance regularly. The 19.99% APR will cost you money, and you would be better off with a personal loan or a 0% balance transfer card if you have any credit history at all. It is also not the right choice if you need a card with a high limit—your limit is capped at your deposit, so if you need $5,000 in available credit, you have to deposit $5,000.
How to Use OpenSky to Actually Rebuild Credit
Opening the card is not enough. You have to use it in a way that shows lenders you can handle credit responsibly. That means making small purchases and paying them off in full each month. Charge $50 to $100 per month, then pay the full balance before the due date. This creates a payment history without costing you interest.
Do not max out the card. Using more than 30% of your available credit hurts your credit score, even if you pay on time. If your limit is $500, keep your balance below $150. If your limit is $1,000, stay below $300.
Keep the card open and active. Closing it after you rebuild your credit will actually hurt your score because it reduces your available credit and shortens your credit history. Use it occasionally for small purchases, even after you move to an unsecured card.
The Path to Conversion and What Comes After
After six to twelve months of on-time payments, you can request that OpenSky convert your account to an unsecured card. There is no automatic conversion, so you have to ask. When you do, OpenSky will review your payment history and decide whether to approve.
If approved, your deposit is returned to you, and the card becomes a regular unsecured card with the same APR and no annual fee. If denied, you keep the secured card and can request conversion again later. There is no penalty for asking.
Conversion is not may provide, and some people never get approved. If that happens, you have still built credit history with the card, and you can move to another unsecured card once your credit score improves enough to pass a standard credit check.
Frequently Asked Questions
Can I withdraw money from my deposit if I need it?
No. Your deposit is held as collateral and cannot be withdrawn while the account is open. You can only get the money back by closing the account or by converting to an unsecured card, at which point the deposit is returned automatically.
What happens if I miss a payment?
A missed payment will be reported to the credit bureaus and will damage your credit score. OpenSky may close your account, and you will lose the credit-building benefit of the card. The deposit remains in the account and is not forfeited for a single late payment, but repeated missed payments could result in account closure.
How long does it take to rebuild credit with OpenSky?
Credit scores improve gradually as you build payment history. Most people see a noticeable improvement within three to six months of on-time payments. However, the speed depends on your starting score and how much other negative information is on your report. Older negative items have less impact over time.
Can I increase my credit limit without adding more money to my deposit?
No. Your credit limit is always equal to your deposit. To increase your limit, you must increase your deposit. You can do this by transferring additional money to your savings account with OpenSky.
Is OpenSky better than a credit-builder loan?
They work differently. A credit-builder loan requires you to make monthly payments on money you borrow, and you receive the money at the end. OpenSky requires you to deposit money upfront and use it as a credit limit. A credit-builder loan may build credit slightly faster because it shows installment payment history, while OpenSky shows revolving credit history. Choose based on which payment pattern you are more comfortable with.