OpenSky Secured Visa Card: A Comprehensive Review of Its Pros, Cons, and Alternatives

Sophie Carter

If you’re rebuilding your credit or starting fresh with no credit history, the OpenSky Secured Visa Credit Card might seem like a viable option. But is it the best choice for your financial goals? Let’s break down the card’s features, benefits, and drawbacks, and compare it to alternatives to help you decide.

Key Features of the OpenSky Secured Visa Card

The OpenSky Secured Visa Card is designed for individuals with no credit history or poor credit scores. Here’s what makes it stand out:

  1. Credit Building:

    • Payments are reported to all three major credit bureaus (Experian, Equifax, and TransUnion), which can help improve your credit score if you pay on time.
    • It also offers the potential to upgrade to an unsecured credit card after 6 months, provided you meet the criteria.

  2. Rewards Program:

    • Earn up to 10% cash back on select purchases through the OpenSky Rewards program. These rewards are applied as statement credits within 120 days.

  3. Fees and Rates:

    • Annual Fee: $35 (a notable cost for a secured card).
    • APR: 24.64% (variable), which is higher than many alternatives.
    • Foreign Transaction Fee: 3% on purchases made outside the U.S.
    • Late Payment Fee: Up to $41.

Pros and Cons

Pros:

  • Easy Approval: No credit check is required, making it accessible for those with no credit history.
  • Credit-Building Potential: Reporting to all three bureaus can help establish or repair your credit.
  • Rewards: The cash-back program adds value for everyday spending.

Cons:

  • High Fees: The $35 annual fee and 24.64% APR are significantly higher than competitors.
  • Limited Rewards: The cash-back rewards are only available on select purchases, and there’s no welcome bonus.
  • No Protection: Unlike some secured cards, OpenSky doesn’t offer features like zero liability for fraudulent charges or purchase protection.

Comparison with Alternatives

While the OpenSky Secured Visa Card is a solid option for rebuilding credit, there are better alternatives depending on your priorities:

  1. Discover it Secured Credit Card:

    • No Annual Fee: Ideal for budget-conscious users.
    • No Foreign Transaction Fee: Better for international travel.
    • Rewards: Earn 2% cash back at gas stations and restaurants, plus a $200 bonus for opening the card.
    • APR: Lower (typically 14.99–24.99%) compared to OpenSky.

  2. Petal 2 “Cash Back, No Fees” Visa Credit Card:

    • Zero Fees: No annual fee, no foreign transaction fee, and no APR for 12 months.
    • Rewards: Up to 1.5% cash back on purchases after 12 on-time payments.
    • APR: 28.99–30.99% (higher than Discover, but still lower than OpenSky’s 24.64%).

These alternatives offer more value for users who want to avoid fees or maximize rewards, making them better fits for most credit-building goals.

User Experiences: Mixed Feedback

While the official reviews highlight the card’s credit-building benefits, user feedback paints a more nuanced picture:

  • Positive Reviews: Many users praise the card for helping them rebuild credit, especially those with no history.
  • Negative Feedback: Some report high fees, difficulty qualifying for upgrades, and issues with the rewards program (e.g., limited merchant partnerships).

One user mentioned, “I’ve been using this card for a year, and it’s helped my credit score improve, but the $35 fee feels steep.” Another noted, “The cash-back rewards are nice, but I wish there were more options for where I can use them.”

Who Should Consider the OpenSky Secured Visa Card?

The OpenSky Secured Visa Card is best suited for:

  • Newcomers to credit: Those with no history or poor scores who need to start building credit.
  • Budget-Conscious Users: If you’re okay with the $35 fee and can manage the APR.
  • Those Prioritizing Credit Building Over Rewards: If your main goal is to improve your credit score.

However, if you’re looking for lower fees, better rewards, or more flexibility, alternatives like the Discover it Secured or Petal 2 cards may be more suitable.

Conclusion

The OpenSky Secured Visa Card is a functional tool for rebuilding credit, but its high fees and limited rewards make it a less ideal choice compared to other secured cards on the market. While it can help improve your credit score, users should carefully weigh the costs and consider alternatives that align better with their financial goals.

Final Verdict: The OpenSky Secured Visa Card is a good starting point for credit-building, but don’t overlook the more competitive options like Discover it Secured or Petal 2. Always compare terms, fees, and rewards before applying.

Ready to take control of your credit? Explore the best secured credit cards for your needs and start building a stronger financial future.

Additional Insights

To further improve your chances of approval or make the most of this card, consider:

  • Applying with a authorized user: Having someone with good credit linked to you can help increase your chances of approval.
  • Building credit habits: Make timely payments, keep utilization low (less than 30%), and monitor your credit report for errors.

By doing so, you’ll be better equipped to make the most of this card and set yourself up for long-term financial success.

Related Articles