Blue Sky is a credit card for people rebuilding credit, issued by Comenity Bank
The Blue Sky Credit Card is a secured credit card designed for people who have limited credit history, poor credit scores, or are working to rebuild their credit after past financial difficulties. You put down a cash deposit, which becomes your credit limit, and use the card like a regular credit card. Comenity Bank, the card issuer, reports your payment activity to the three major credit bureaus — Equifax, Experian, and TransUnion — so responsible use can help improve your credit score over time.
The card charges an annual fee and interest on balances you carry month to month. There is no rewards program. The main value is that it accepts applicants with credit scores below 600 and does not require a credit check in the traditional sense — the bank's decision rests mainly on your ability to make the deposit and your banking history.
Key Takeaways
- Blue Sky requires a cash deposit of $200 to $2,500, which becomes your credit limit and stays in a separate account at the bank.
- You pay an annual fee (the amount varies and should be confirmed with the issuer before you explore) and standard interest rates on any balance you do not pay off each month.
- The card reports to all three credit bureaus, so on-time payments build your credit history and can raise your score over months of responsible use.
- After a period of on-time payments — typically 7 to 12 months — you may be able to move to an unsecured card or have your deposit returned while keeping the account open.
How the deposit works and what it costs
When you open a Blue Sky account, you choose a deposit amount between $200 and $2,500. This deposit is held in a separate savings account at Comenity Bank and serves as collateral. Your credit limit equals your deposit — if you deposit $500, your limit is $500. The bank keeps the deposit even as you use the card; it does not reduce when you make charges.
You will pay an annual fee to hold the card. The exact amount should be confirmed directly with Comenity Bank or on the card's current terms page, as fees can change. You will also pay interest on any balance you carry past the due date. The interest rate (APR) is set based on your creditworthiness at the time of approval and is disclosed in your card agreement.
If you close the account or the bank closes it, your deposit is returned to you, minus any unpaid balance or fees owed. If you move to an unsecured card through the bank's upgrade path, your deposit may be returned while you keep using the new card.
Who this card is designed for
Blue Sky is built for people in one of these situations: you have no credit history yet (you are new to credit), your credit score is below 600 due to past missed payments or collections, or you are rebuilding after a major event like bankruptcy or foreclosure. The card does not require a high income or a perfect banking record, which makes it accessible to people who would be turned down for unsecured cards.
The card is not a good fit if you already have a credit score above 650 and access to unsecured cards with no deposit requirement. You would pay the annual fee and deposit for no real benefit. It is also not the right choice if you cannot afford to set aside the deposit amount or if you plan to carry a balance regularly — the interest charges will add up quickly on a small limit.
How to use it to build credit
The goal of a secured card is to show lenders you can handle credit responsibly. To do that, use the card for small, regular purchases — a gas fill-up, a grocery trip, a utility bill — and pay the full balance by the due date every month. This creates a record of on-time payments, which is the single biggest factor in your credit score.
Do not max out the card. Using more than 30 percent of your available credit (your deposit amount) can hurt your score, even if you pay on time. If your deposit is $500, try to keep your balance below $150 before your statement closes.
Keep the card open and active. Closing it after you rebuild your credit can actually lower your score because it reduces the total credit available to you. Many people move to an unsecured card through the bank's upgrade program and keep the Blue Sky account open with occasional small charges.
Comparing Blue Sky to other secured cards
Several banks offer secured cards with similar structures: Capital One Secured, Discover Secured, and others. The main differences are the deposit range, annual fee amount, interest rate, and how quickly the bank offers an upgrade path to an unsecured card. Some secured cards have no annual fee; others charge $25 to $99 per year. Some report to all three bureaus; a few report to only one or two.
Before choosing Blue Sky, compare the annual fee, deposit minimum and maximum, and the bank's stated timeline for moving to an unsecured card. If another card has no annual fee and a lower deposit minimum, it may be the better choice for your situation. The credit-building benefit is similar across all secured cards — what matters is consistent on-time payments, not which bank you choose.
What happens after you build your credit
After 7 to 12 months of on-time payments, Comenity Bank may offer to convert your account to an unsecured card. When this happens, your deposit is returned to you, and you keep using the card without the collateral requirement. Your credit limit may stay the same or increase. You will still pay an annual fee and interest on any balance, but you no longer have money tied up in a deposit.
If the bank does not offer an upgrade automatically, you can contact them to ask about moving to an unsecured product. Some people choose to keep the secured card open even after their credit improves, because closing it can lower their score. Instead, they open a second unsecured card and use both responsibly.
If your credit score improves significantly, you become a candidate for unsecured cards with better terms — lower interest rates, higher limits, or rewards. At that point, Blue Sky has served its purpose, and you can move on to a card that better matches your improved credit profile.
Fees and interest you should know about
The annual fee is charged once per year and is deducted from your account or added to your balance. There is no rewards program, so you do not earn cash back or points on purchases. Late fees explore if you miss a payment, and the amount depends on how late you are and your card agreement. Interest accrues daily on any balance you do not pay in full by the due date.
Some secured cards charge a one-time processing fee when you open the account. Confirm whether Blue Sky charges this before you submit your information. There may also be fees for services like expedited shipping of your physical card, balance transfers, or cash advances — check the full fee schedule in the card agreement.
Frequently Asked Questions
Can I use Blue Sky if I have no credit history at all?
Yes. The card is designed for people with no credit history, limited history, or poor credit. The bank does not require a traditional credit check and focuses instead on your ability to make the deposit and your banking history. This makes it one of the few options for people starting from zero.
What if I cannot afford the full deposit amount?
Blue Sky's minimum deposit is $200. If you cannot set aside that amount, you may need to wait until you can, or explore other options like becoming an authorized user on someone else's account (which reports to your credit file without requiring your own deposit) or a credit-builder loan from a credit union.
Will my credit score go up right away after I open the account?
No. Your score may dip slightly when the bank checks your account, but it will not improve until you have a history of on-time payments. Most people see movement after 3 to 6 months of consistent, full monthly payments. Significant improvement typically takes 12 months or longer.
Can I get my deposit back before I upgrade to an unsecured card?
Not while the account is open and active. Your deposit is held as collateral for the credit line. Once you close the account or the bank converts it to an unsecured card, your deposit is returned. Some banks allow you to reduce your deposit (and your credit limit) after a period of good payment history, but this varies by issuer.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and will lower your score. You will also be charged a late fee. If you miss payments repeatedly, the bank may close your account and use your deposit to cover the unpaid balance. This is why on-time payment is critical — the whole purpose of the card is to build a positive payment history.