What the OpenSky Card Does and Doesn't Do
The OpenSky Secured Visa Card is a secured card that reports to all three credit bureaus and charges no annual fee — two things that make it stand out from most competitors in this category. You put down a cash deposit between $200 and $3,000, and that becomes your credit limit. You use the card like any other, pay your bill each month, and the deposit stays in a separate account earning a small amount of interest.
What makes OpenSky different is that it does not require a credit check to open an account. That matters if your credit report has recent damage — late payments, collections, or a bankruptcy discharge — because other secured cards will turn you down. OpenSky will look at your bank account instead, checking that you can cover the deposit and that you do not have unpaid accounts with them already.
The catch is the interest rate. OpenSky charges between 18.9% and 21.9% APR depending on your creditworthiness, which is at the high end even for secured cards. If you carry a balance, you will pay significantly more in interest than you would with a traditional card — or even with most other secured options.
Key Takeaways
- OpenSky requires no credit check and charges no annual fee, making it reachable for people with recent credit damage or no credit history.
- The interest rate ranges from 18.9% to 21.9% APR, so carrying a balance will cost you more than with most other cards.
- Your deposit earns interest and stays separate from the card issuer, so your money is not at risk if you miss a payment.
- The card reports to all three bureaus monthly, so on-time payments build your credit history faster than cards that report to only one or two.
- You can request a credit limit increase after six months of on-time payments, and the deposit does not automatically convert to an unsecured card.
When OpenSky Makes Sense for Your Situation
OpenSky is worth considering if you have been turned down by other secured card issuers or if you have no credit history at all. Discover, Capital One, and other secured card companies do run credit checks, and they may decline you if your score is very low or if you have recent collections or charge-offs. OpenSky's no-credit-check approach removes that barrier.
The card also works well if you plan to pay your balance in full every month. When you carry no balance, the high interest rate does not matter — you pay nothing in interest charges. You get the benefit of reporting to all three bureaus without paying an annual fee, which is genuinely rare in the secured card market.
OpenSky is less attractive if you know you will need to carry a balance for several months. A $1,000 balance at 21% APR costs you about $17.50 per month in interest alone. Over a year, that is $210 in interest on top of your principal. Other secured cards, like the Capital One Secured Mastercard or the Discover Secured Card, charge lower rates — typically 19.9% to 24.9%, but many cardholders get approved at the lower end of that range.
How the Deposit Works and What Happens to Your Money
Your deposit is held in a separate savings account at Customers Bank, not by OpenSky itself. That separation protects your money — if you miss a payment, the card issuer cannot take the deposit to cover what you owe. You keep earning interest on the deposit, though the rate is very low (currently under 0.5% annually on most accounts).
You can withdraw your deposit at any time, but doing so closes the account. If you want to keep the card open and active, the deposit has to stay in place. Some people use this as a forced savings tool — you cannot touch the money without losing the card, so it stays put.
After you have made on-time payments for a period of time (usually 6 to 18 months, depending on your starting credit profile), you can request a credit limit increase. You can increase your limit by adding more money to the deposit, or in some cases OpenSky will increase it without requiring additional funds. The deposit does not automatically convert to an unsecured card, so you will need to ask if you want to move to an unsecured product later.
How OpenSky Compares to Other Secured Cards
The main advantage OpenSky has over Discover Secured and Capital One Secured is the no-credit-check requirement. If you have been rejected elsewhere, OpenSky may be your only option. Both Discover and Capital One do pull your credit report and may decline you if your score is very low or if you have recent serious delinquencies.
On interest rates, OpenSky is not the cheapest. Capital One Secured cardholders with good payment history often get approved at 19.9% APR, and Discover Secured starts at 19.9% as well. OpenSky's floor is 18.9%, which is slightly better, but many people get approved at the higher end of the range. The real difference shows up if you carry a balance — a few percentage points matter when you are paying interest month after month.
Both Discover and Capital One also offer a path to an unsecured card without requiring you to explore separately. After a period of on-time payments, they automatically review your account and may convert it to an unsecured product. OpenSky requires you to request this conversion, and it is not may provide. If building toward an unsecured card is your goal, Discover and Capital One have a clearer track record of doing so.
What to Watch Out For Before You Open an Account
Read the deposit agreement carefully. Your deposit earns interest, but that interest is paid to you only once per year, usually in January. If you close the account mid-year, you forfeit the interest accrued so far. It is a small amount — on a $1,000 deposit at 0.35% APR, you earn about $3.50 per year — but it is worth knowing.
OpenSky does not offer a grace period on purchases. Most credit cards give you 21 to 25 days to pay your balance before interest starts accruing. OpenSky charges interest from the day a purchase posts to your account. That means even if you pay in full, you will owe a small amount of interest if you do not pay before the purchase date. This is unusual and makes carrying any balance more expensive than it would be with a standard card.
Check whether OpenSky reports to all three bureaus in your state. While they report to Equifax, Experian, and TransUnion in most places, some states have restrictions on how credit reporting works. Confirm this before you open an account so you know your payments will actually build your credit history.
Steps to Take Before Deciding
First, check whether you can open a Discover Secured or Capital One Secured card instead. Go to their websites and use the pre-qualification tool — it will tell you whether you are likely to be approved without doing a hard pull on your credit. If either one approves you, compare the interest rate you would get to OpenSky's range. A lower rate saves you money if you ever carry a balance.
Second, decide whether you will pay your balance in full every month. If yes, the high interest rate does not affect you, and OpenSky's lack of an annual fee makes it a reasonable choice. If you think you might carry a balance, the interest rate becomes important, and you should shop around.
Third, make sure you have $200 to $3,000 available to deposit. This money is yours and earns interest, but it is not available for everyday spending while the account is open. If you need that cash for living expenses, a secured card is not the right tool right now — focus on building an emergency fund first.
Frequently Asked Questions
Can I get my deposit back if I close the account?
Yes. Your deposit is held separately and returned to you when you close the account. If you close mid-year, you will not receive the interest accrued since the last payout date, but your principal deposit comes back in full. There is no penalty for closing the account.
Does OpenSky convert to an unsecured card automatically?
No. After six to 18 months of on-time payments, you can request a conversion, but OpenSky does not do it automatically. You have to contact them and ask. Even then, conversion is not may provide — it depends on your payment history and current credit profile.
What happens if I miss a payment?
A missed payment is reported to all three credit bureaus and will damage your credit score. OpenSky cannot take your deposit to cover the missed payment because the deposit is held separately. However, a 30-day late payment will stay on your credit report for seven years, so avoiding missed payments is critical.
Is the interest rate locked in, or can it change?
Your APR is set when you open the account based on the information you provide. OpenSky can review and change your rate after six months, but they will notify you in writing before any change takes effect. You have the right to close the account rather than accept a rate increase.
Do I have to use the card every month to keep it open?
No, but inactivity can lead to account closure. If you do not use the card for an extended period (typically 12 months or more), OpenSky may close it. To keep the account active, use it at least once every few months and pay the balance on time.