What the OpenSky Card Does and Who It's For
The OpenSky Secured Credit Card is a secured card that reports to all three credit bureaus and requires a cash deposit between $200 and $20,000 to open. Your deposit becomes your credit limit — deposit $500, get a $500 limit. Unlike many secured cards, OpenSky does not require a credit check to open an account, which makes it reachable for people with very poor credit or no credit history at all.
The card charges an annual fee of $35 and has no introductory period waiving it. Interest rates run 19.99% APR, which is high but standard for secured cards aimed at credit rebuilding. The card has no rewards program, no cash back, and no sign-up bonus. It exists for one purpose: to help you build or repair credit history by reporting your monthly payments to Equifax, Experian, and TransUnion.
OpenSky is useful if you have been denied by other secured card issuers, have no credit file at all, or need to rebuild after a bankruptcy or collection account. It is not useful if you already have access to an unsecured card or a secured card with lower fees.
Key Takeaways
- OpenSky requires a deposit of $200 to $20,000 that becomes your credit limit, with no credit check needed to open the account.
- The card charges a $35 annual fee with no rewards, cash back, or introductory period, making it one of the more expensive secured cards on the market.
- Your monthly payments report to all three credit bureaus, so on-time payments directly build your credit score over time.
- After 18 months of on-time payments, you can request that OpenSky convert the card to unsecured status and return your deposit.
- The 19.99% APR means carrying a balance costs significantly more than paying in full each month.
Deposit Requirements and How Your Credit Limit Works
You choose your deposit amount when you open the account, and that amount becomes your credit limit. The minimum is $200 and the maximum is $20,000. Your deposit sits in a savings account held by OpenSky's bank partner and earns no interest. You cannot withdraw it while the card is active — it stays locked until you close the account or convert to unsecured status.
If you deposit $500, your credit limit is $500. If you later want a higher limit, you must add more money to your deposit. OpenSky allows you to increase your deposit at any time, and the increase becomes available as additional credit within one business day. There is no fee for increasing your deposit.
The deposit protects OpenSky if you stop paying, which is why the card does not require a credit check. The bank is not betting on your creditworthiness — it is holding your own money as collateral. This also means your credit score does not affect whether you are approved; the only real barrier is having the cash to deposit.
Fees, Interest Rates, and the True Cost of Carrying a Balance
The $35 annual fee is charged every year on your account anniversary, regardless of whether you use the card. This is higher than many competitors — for example, the Capital One Secured Mastercard charges $0 annually, and the Discover it Secured card charges $0 after the first year. If you plan to keep the card open for multiple years, the annual fee adds up quickly.
The 19.99% APR applies to purchases, balance transfers, and cash advances. There is no grace period for purchases, meaning interest accrues from the day you make a transaction if you carry any balance. If you charge $500 and pay it off in full by the due date, you pay no interest. If you charge $500 and pay $250, interest accrues on the remaining $250 at 19.99% APR until you pay it off.
At 19.99% APR, a $500 balance costs roughly $8.33 per month in interest alone. Over a year, that same $500 balance costs about $100 in interest if you make no payments. The card is designed for credit building, not for carrying balances — the interest rate makes borrowing expensive.
How Payment History Builds Your Credit Score
OpenSky reports your account to Equifax, Experian, and TransUnion every month. This means every on-time payment you make gets recorded on your credit report and contributes to your payment history, which is the largest factor in your credit score (typically 35% of the score). A single missed payment also reports to all three bureaus and can drop your score significantly.
The card does not report your credit limit or deposit amount to the bureaus — it reports your account as a regular credit card with a limit equal to your deposit. This means if you deposit $500, the bureaus see a $500 limit. Using the card responsibly (keeping your balance low and paying on time) shows lenders that you can manage credit, which is the entire point of a secured card.
Most people see score improvements within 3 to 6 months of consistent on-time payments, though the timeline depends on your starting score and credit history. If you have no credit file at all, the first few months build the foundation. If you are rebuilding after a negative event like a bankruptcy, improvement takes longer but still happens with on-time payments.
Converting to Unsecured Status and Getting Your Deposit Back
After 18 months of on-time payments, you can request that OpenSky convert your card to unsecured status. If approved, your deposit is returned to you and your credit limit may increase. There is no automatic conversion — you must contact OpenSky and ask. The company reviews your payment history and current credit score before deciding whether to approve the conversion.
Conversion is not may provide. If you have missed payments, paid late, or your credit score has not improved, OpenSky may deny the request. If denied, you can ask again after another 6 months of on-time payments. Some cardholders never convert and straightforward close the account after building enough credit to move to another card.
When you close the account, your deposit is returned within 5 to 7 business days. The account closure itself reports to the credit bureaus and remains on your credit report for 10 years, but it does not harm your score — closed accounts in good standing actually help your credit profile by showing a history of responsible credit use.
How OpenSky Compares to Other Secured Cards
OpenSky's main advantage is that it requires no credit check, making it accessible to people with very poor credit or no credit history. Most other secured cards run a soft or hard credit inquiry, which can disqualify applicants with recent negative marks. If you have been denied by Capital One, Discover, or other mainstream issuers, OpenSky may be your entry point.
The trade-off is cost. OpenSky's $35 annual fee is higher than Capital One Secured ($0), Discover it Secured ($0 after year one), and most bank-issued secured cards. The 19.99% APR is also on the higher end, though not unusual for secured cards. Over three years, the annual fees alone total $105, which is money you would not pay with a competing card.
If you have access to another secured card, compare the total cost: annual fee plus APR. If you have no credit history and no other options, OpenSky's lack of a credit check makes it worth the higher fees. If you have some credit history but poor scores, a card with lower fees may save you money in the long run.
What Happens If You Miss a Payment or Default
If you miss a payment, OpenSky reports it to all three credit bureaus. A single late payment can drop your score 50 to 100 points or more, depending on your current score and history. The late payment stays on your credit report for seven years, though its impact on your score decreases over time.
If you stop paying entirely, OpenSky will eventually charge off the account, meaning they write it off as a loss. At that point, they may sell the debt to a collection agency, which will also report to the bureaus. Your deposit does not protect you from this — OpenSky will use your deposit to cover the unpaid balance, and if the balance exceeds your deposit, the difference may be sent to collections.
The card has no hardship programs or payment deferrals. If you are struggling to pay, contact OpenSky when ready to discuss options. Many issuers will work with you on a payment plan rather than let an account go to charge-off, but you have to reach out first.
Frequently Asked Questions
Do I need good credit to get approved for the OpenSky card?
No. OpenSky does not run a credit check, so your credit score does not affect approval. You need a valid Social Security number, a U.S. address, and the cash to make your deposit. People with no credit history, recent bankruptcies, or collections accounts can open an account.
Can I use my deposit as a regular savings account?
No. Your deposit is held as collateral and locked while the card is active. You cannot withdraw it or access it. It earns no interest. The only way to get your deposit back is to close the account or convert to unsecured status after 18 months of on-time payments.
What happens to my credit score if I close the card?
Closing the card does not hurt your score. The account stays on your credit report for 10 years and continues to show a positive payment history. Your available credit decreases (which can slightly raise your score if you were using a high percentage of your limit), but the overall effect is neutral to positive.
Can I increase my credit limit without adding more money?
No. Your credit limit is tied directly to your deposit. The only way to increase your limit is to add more money to your deposit. There is no fee to do this, and the increase takes effect within one business day.
How long does it take to see my credit score improve?
Most people see improvements within 3 to 6 months of on-time payments, though it depends on your starting score and credit history. If you have no credit file, the first few months build the foundation. If you are rebuilding after a major negative event, improvement takes longer but still happens with consistent on-time payments.