What the OpenSky Card Offers

The OpenSky Secured Credit Card is a secured card that reports to all three credit bureaus — Equifax, Experian, and TransUnion — which means your payment history can help rebuild credit if you have limited history or past damage. You put down a cash deposit between $200 and $20,000, and that deposit becomes your credit limit. You use the card like any other credit card, pay your bill each month, and the deposit stays in a separate account untouched unless you miss payments.

The card charges an annual fee of $35. There is no foreign transaction fee, which is unusual for a secured card at this price point. There is also no penalty APR — if you miss a payment, your regular APR applies instead of a punitive rate jumping to 29% or higher. The regular APR varies based on creditworthiness and market conditions, so OpenSky does not publish a single rate.

OpenSky does not require a credit check to open the account, which is why people with no credit history or recent negative marks can be approved. The company does use ChexSystems, a banking history report, so a history of unpaid bank fees or closed accounts for cause may still result in a denial.

Key Takeaways

  • Your deposit becomes your credit limit, and the deposit stays frozen in a separate account — you cannot access it while the card is open.
  • The $35 annual fee is charged every year, so the true cost of using this card for one year on a $200 deposit is 17.5% of your deposit.
  • No credit check is required, but the company does review your banking history through ChexSystems, which can result in denial.
  • The card reports to all three bureaus, so on-time payments build your credit history and may help you move to an unsecured card within 6 to 18 months.
  • The lack of a foreign transaction fee makes this card more useful than most secured cards if you travel internationally or make purchases from foreign merchants.

How the Annual Fee Affects Your Real Cost

The $35 annual fee matters more on a secured card than on a regular card because your deposit is limited. If you deposit $200, you are paying $35 per year to use $200 of credit — that is a 17.5% annual cost just for the privilege of having the card, before you pay any interest on a balance.

On a $500 deposit, the fee drops to 7% of your deposit. On a $1,000 deposit, it is 3.5%. The larger your deposit, the less the fee stings. If you are rebuilding credit and can only afford a small deposit, this card is more expensive than competitors like the Capital One Secured Mastercard, which has no annual fee. If you have $1,000 or more to deposit, the fee becomes less of a burden.

The fee is charged on your statement each year, usually on the anniversary of when you opened the account. You can pay it from your regular bank account or from your available credit on the card itself.

When You Might Move to an Unsecured Card

OpenSky publishes no official timeline for graduation to an unsecured card, and the company does not may provide it will happen. However, cardholders report being offered unsecured cards after 6 to 18 months of on-time payments. The offer usually comes as a letter in the mail or a notification in your online account.

When you graduate, OpenSky returns your deposit to your bank account. The new unsecured card typically has a higher credit limit than your deposit was, though the APR may be higher than the secured card's rate. You do not have to accept the offer — some people keep the secured card open because the lack of a foreign transaction fee is useful, or because closing it would lower their average account age and hurt their credit score.

Graduation is not automatic. If you miss payments, max out the card, or show other signs of risk, OpenSky may never offer you an unsecured version. The company is also more likely to offer graduation to people who use the card regularly — carrying a small balance and paying it off each month, or making regular small purchases — rather than people who open it and never use it.

Comparing OpenSky to Other Secured Cards

The main trade-off with OpenSky is the $35 annual fee versus no annual fee. The Capital One Secured Mastercard has no annual fee, reports to all three bureaus, and has no foreign transaction fee either. The Discover Secured Card also has no annual fee and reports to all three bureaus, though it does charge a foreign transaction fee. If you are depositing less than $500, Capital One or Discover will cost you less.

OpenSky's advantage is that it does not require a credit check, which matters if you have recent negative marks or a very thin credit file. Capital One and Discover both pull a credit report, which can result in a hard inquiry on your credit and a denial if your score is too low or your recent history is too damaged. If you have been turned down elsewhere, OpenSky may approve you.

Another difference: OpenSky allows you to increase your deposit and credit limit after you have had the card for a few months, without a new credit check. Capital One and Discover require you to request a credit limit increase, which triggers a hard inquiry. If you think you will need more credit room soon, OpenSky's flexibility is an advantage.

How to Use the Card to Rebuild Credit

The card only helps your credit if you use it and pay on time. Opening the account and never using it does almost nothing — you get a new account (which lowers your average age) and a hard inquiry (which temporarily lowers your score), but no payment history to show lenders you are reliable.

The most effective approach is to make a small purchase each month — a subscription, a gas fill-up, a grocery trip — and pay the full balance before the due date. This shows consistent, on-time payment without the risk of interest charges. Paying the full balance also keeps your credit utilization low, which helps your score. If you carry a balance to show you can manage debt, keep it below 10% of your limit.

Do not miss a payment. A single late payment stays on your credit report for seven years and can set back your rebuilding by months. Set up automatic payments for at least the minimum, or set a phone reminder a few days before the due date. The card reports to the bureaus monthly, so each on-time payment is a data point in your favor.

Deposit Safety and Account Features

Your deposit is held in a separate savings account at the bank that issues the OpenSky card. It is not part of your credit line, and the card issuer cannot touch it unless you default on the card itself. The deposit is FDIC-insured up to $250,000, so your money is protected even if the bank fails.

You can view your deposit balance and credit limit in your online account or by calling customer service. You cannot withdraw the deposit while the card is open — that is the point of a secured card. If you close the account, OpenSky returns the deposit to your bank account within 5 to 10 business days, though the timeline can vary.

The card comes with basic features: an online account portal, a mobile app, fraud monitoring, and zero liability for unauthorized charges. There is no rewards program, no cash back, and no sign-up bonus. You are paying for the ability to rebuild credit, not for perks.

Frequently Asked Questions

Can I use the card internationally?

Yes. The card works at merchants and ATMs worldwide. There is no foreign transaction fee, which is a real advantage if you travel or shop from international websites. You will pay the card's APR on any balance you carry, but not an extra percentage for the foreign purchase itself.

What happens if I miss a payment?

The payment goes to your credit report as late after 30 days. Your APR applies — there is no penalty APR that jumps higher. If you miss a payment by 60 days or more, OpenSky may freeze your account or close it. Your deposit is not automatically taken to cover the missed payment, but the company can pursue collection or explore the deposit to the debt if you default completely.

Can I increase my credit limit without a new credit check?

Yes. After a few months of on-time payments, you can request to increase your deposit and credit limit. OpenSky does not pull a new credit report for this request, which means no hard inquiry. You straightforward add more money to your deposit account, and your limit rises by that amount.

How long does it take to get approved?

OpenSky typically approves or denies applications within one to two business days. If approved, the card arrives in the mail within 7 to 10 business days. You can begin using it once it arrives and you set up it through the app or website.

What if I want to close the account?

Call customer service or use your online account to request closure. OpenSky will return your deposit to your bank account within 5 to 10 business days. Any remaining balance on the card must be paid before or at the time of closure. Closing the account removes it from your active credit lines, which can lower your credit score slightly because it reduces your available credit, but it does not erase the payment history you built.