What the OpenSky card is and who it's built for

The OpenSky Secured Credit Card is a secured card that reports to all three credit bureaus — Equifax, Experian, and TransUnion — which means the payment history you build shows up on your credit report. You put down a cash deposit (your security deposit), and that deposit becomes your credit limit. You then use the card like any other credit card, making purchases and paying a monthly bill.

OpenSky is designed for people rebuilding credit after missed payments, collections, or a long period without credit activity. It's also used by people with no credit history at all — immigrants, young adults, or anyone starting from scratch. The card does not require a credit check to open, which is why it appears in applications from people who have been turned down elsewhere.

The trade-off is that you're paying for the privilege. The annual fee is $35, and the interest rate (APR) is high — currently 19.99% — which means carrying a balance costs real money. The card is most useful if you plan to pay your full statement balance each month and let your on-time payments build your credit history.

Key Takeaways

  • You deposit cash with OpenSky, and that amount becomes your credit limit — a $500 deposit gives you a $500 limit.
  • The card charges a $35 annual fee and a 19.99% APR, so carrying a balance is expensive; paying in full each month is the intended use.
  • OpenSky reports to all three credit bureaus, so on-time payments build your credit score over time.
  • Your deposit is held as collateral and returned when you close the account or graduate to an unsecured card, though this can take weeks.
  • There is no credit check required to open the account, making it accessible to people with damaged credit or no credit history.

How your deposit and credit limit work

Your security deposit is the money you send to OpenSky upfront. The minimum deposit is $200, and the maximum is $2,500. Whatever you deposit becomes your credit limit — if you send $500, your limit is $500. This is different from an unsecured card, where the bank decides your limit based on your credit score and income.

Your deposit sits in a separate account at OpenSky and earns no interest. It is not used to pay your bill if you miss a payment — OpenSky will charge your linked bank account for the monthly payment just like any other card issuer. The deposit is collateral, held in case you default entirely. If you make your payments on time and eventually close the account or move to an unsecured OpenSky card, the deposit is returned to you, though the process can take 4 to 6 weeks after your account closes.

You can request a credit limit increase after six months of on-time payments. OpenSky will review your account history and may raise your limit without requiring an additional deposit, though this is not may provide.

Fees, interest, and the real cost of using the card

The $35 annual fee is charged once per year, usually on your account anniversary. This fee is non-negotiable — there is no way to waive it or earn it back through rewards, because OpenSky does not offer rewards or cash back. You pay the fee whether you use the card or not.

The APR of 19.99% applies to any balance you carry past your statement due date. If you charge $300 and pay the full $300 by the due date, you pay no interest. If you charge $300 and pay only $150, the remaining $150 is charged interest at a daily rate based on the 19.99% APR. On a $150 balance, that's roughly $2.50 per month in interest alone — small in isolation, but it compounds if you carry a balance month to month.

There are no late fees, over-limit fees, or foreign transaction fees listed in OpenSky's terms. However, a late payment will be reported to the credit bureaus and will damage your credit score, which defeats the purpose of using the card to rebuild credit.

How OpenSky reports to credit bureaus and builds your credit

Every month, OpenSky sends your payment history to Equifax, Experian, and TransUnion. This means your on-time payments are recorded on your credit report, and over time, a pattern of on-time payments raises your credit score. The effect is gradual — you typically see movement in your score after three to six months of consistent payments — but it is real and measurable.

OpenSky also reports your credit limit (the amount of your deposit), which affects your credit utilization ratio. If your limit is $500 and you charge $100, your utilization is 20%, which is good for your score. If you charge $450, your utilization is 90%, which hurts your score even if you pay on time. Keeping your balance low relative to your limit helps your credit score grow faster.

Missed or late payments are also reported to the bureaus and will lower your score. A single late payment can drop your score 50 to 100 points, depending on how late it is and your overall credit history. This is why the card is most effective if you can commit to paying on time every month.

The process process and what to expect

You explore online at OpenSky's website. The process asks for your name, address, date of birth, Social Security number, and income. OpenSky does not run a hard credit check, so the process does not appear on your credit report and does not lower your score. The process is usually approved or denied within one business day.

If approved, you'll be asked to fund your security deposit. You can do this by bank transfer (ACH) or by mailing a check. Bank transfers typically clear within one to two business days. Once your deposit is received and verified, your account is activated and you receive your card in the mail, usually within 7 to 10 business days.

If you're denied, OpenSky will tell you why — usually because of a prior default with another lender or a very recent bankruptcy. There is no appeal process, but you can reapply after your circumstances change (for example, after a charge-off has aged or after a bankruptcy is discharged).

When to move beyond the OpenSky card

The goal of a secured card is to use it as a stepping stone. After 6 to 12 months of on-time payments, your credit score should improve enough to may have access to for an unsecured card with better terms — lower APR, no annual fee, or even rewards. At that point, you can close the OpenSky account and move your spending to the new card.

Some people graduate to an unsecured OpenSky card, which OpenSky offers to existing customers with good payment history. This card has a $35 annual fee and 19.99% APR (the same as the secured version), so the main benefit is that your deposit is returned. Other people move to a different issuer entirely — Capital One, Discover, or another bank that offers cards to people with rebuilt credit.

The timeline depends on your starting credit score and how consistently you pay. If you start with no credit history, six months of perfect payments may be enough. If you're rebuilding after a recent default or bankruptcy, it may take 12 to 18 months. Check your credit score every few months using a free service like Credit Karma or AnnualCreditReport.com to track your progress.

Alternatives to the OpenSky card

Other secured cards exist and may offer better terms. The Capital One Secured Mastercard has no annual fee (though it has a 19.99% APR), and the Discover Secured Card offers 2% cash back on purchases at gas stations and restaurants, plus 1% back on everything else. Both require a credit check, so they're not available to everyone OpenSky serves, but if you can may have access to, they may be worth comparing.

If you have a bank account with a credit union, ask whether they offer a secured card. Credit unions sometimes have lower fees and APRs than national card issuers, and they may be more flexible about approving people with recent credit problems.

If your credit is so damaged that even OpenSky denies you, a secured card may not be the right tool yet. Consider a credit-builder loan from a credit union or a peer-to-peer lender, which can rebuild credit without the monthly interest charges of a credit card.

Frequently Asked Questions

Can I increase my credit limit without adding more money?

Yes, after six months of on-time payments, you can request a credit limit increase. OpenSky will review your account and may raise your limit without requiring an additional deposit. However, this is not automatic, and OpenSky does not may provide an increase.

What happens if I miss a payment?

A missed payment is reported to all three credit bureaus and will lower your credit score. OpenSky will also charge you late fees (though the amount varies) and may close your account. Your deposit is not used to cover the missed payment — you still owe the full amount.

Can I get my deposit back early?

Your deposit is returned only when you close the account or graduate to an unsecured card. There is no early withdrawal option. The return process takes 4 to 6 weeks after your account closes.

Does OpenSky offer any rewards or cash back?

No. OpenSky does not offer rewards, cash back, or points. You pay the $35 annual fee and the 19.99% APR with no offsetting benefits. The value of the card is in the credit-building function, not in earning rewards.

How long does it take to see my credit score improve?

Most people see movement in their credit score after three to six months of on-time payments. The exact timeline depends on your starting score, your credit history, and how much of your credit limit you use each month. Keeping your balance low and paying on time every month produces the fastest results.