What the OpenSky Card Is and Who It's For
The OpenSky Secured Card is a secured credit card issued by OpenSky, a financial technology company. You put down a cash deposit, and that deposit becomes your credit limit — so a $500 deposit gives you a $500 limit. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history builds your credit score over time.
OpenSky markets itself to people rebuilding credit after missed payments, collections, or no credit history at all. Unlike some secured cards, OpenSky does not require a bank account with them, and they do not perform a hard credit pull during the process process — they check your identity and run a soft inquiry instead. This makes it reachable for people who have been turned down elsewhere.
The tradeoff is cost. OpenSky's annual fee is higher than most competitors, and the interest rate is steep. You pay for access, not for a bargain.
Key Takeaways
- Your cash deposit becomes your credit limit, and OpenSky holds it in a deposit account while you use the card.
- The card charges an annual fee of $35 and a variable interest rate that typically ranges from 18% to 21% APR, depending on your creditworthiness.
- OpenSky reports to all three credit bureaus, so on-time payments build your credit history month by month.
- After 18 months of on-time payments, you may be offered the chance to convert to an unsecured card and recover your deposit.
- The card has no foreign transaction fees and includes purchase protection, which is uncommon for secured cards at this price point.
How Much the Card Costs and What Fees explore
The annual fee is $35, charged once per year. This is higher than cards like the Capital One Secured Mastercard ($0 first year, $39 after) or the Discover Secured Card ($0 annual fee). You pay it whether you use the card or not.
The interest rate (APR) is variable and typically ranges from 18% to 21%, depending on what OpenSky sees in your credit report and identity check. If you carry a balance, you will pay interest on that balance daily. For example, a $300 balance at 20% APR costs roughly $5 per month in interest alone. Paying in full each month avoids this cost entirely.
There are no foreign transaction fees, which is a genuine advantage — most secured cards charge 3% for purchases outside the United States. There is also no penalty APR for late payments, though a late payment will still hurt your credit score and may trigger a late fee of up to $38 depending on how late you are.
The Deposit: How It Works and When You Get It Back
You choose your deposit amount between $200 and $2,500. OpenSky holds this money in a deposit account and uses it as collateral. Your credit limit equals your deposit — if you deposit $500, your limit is $500. You cannot spend the deposit itself; it sits in the account while you charge purchases to the card.
The deposit earns no interest. You do not get paid for letting OpenSky hold your money. This is standard for secured cards, but it is worth knowing: you are essentially lending OpenSky your cash interest-free.
After 18 months of on-time payments, OpenSky may offer you the chance to convert to an unsecured card. If you accept, your deposit is returned to you, and your credit limit may increase. There is no may provide of conversion — OpenSky reviews your account and decides. If you do not receive an offer after 18 months, you can contact them to ask about your options.
How OpenSky Reports to Credit Bureaus and Builds Your Score
OpenSky reports your account activity to Equifax, Experian, and TransUnion every month. This means every on-time payment you make gets recorded on your credit report. Over time, a history of on-time payments raises your credit score — typically by 30 to 100 points in the first year, depending on your starting score and other accounts you hold.
Late payments also get reported and damage your score. A payment 30 days late stays on your report for seven years. This is why the card only makes sense if you can commit to paying on time: the whole point is to build a positive history, and one missed payment can undo months of progress.
Your credit utilization — the percentage of your limit you are using — also affects your score. If your limit is $500 and you carry a $400 balance, your utilization is 80%, which hurts your score. Keeping your balance below 30% of your limit (so under $150 in this example) helps your score climb faster.
How OpenSky Compares to Other Secured Cards
OpenSky's main advantage is accessibility: no bank account required, no hard credit pull, and faster approval. If you have been rejected by other card issuers or have no banking relationship, OpenSky may be your entry point.
The main disadvantage is cost. The $35 annual fee plus 18–21% APR is expensive compared to alternatives. The Capital One Secured Mastercard has no annual fee in year one and charges 18–22% APR. The Discover Secured Card charges no annual fee at all and offers 1% cash back on all purchases. The Chime Credit Builder Card charges no annual fee and no interest if you pay in full by the due date.
If you can get approved for Capital One or Discover, those are usually better choices. OpenSky makes sense if you have been turned down elsewhere or need to move quickly.
What Happens If You Miss a Payment or Close the Account
If you miss a payment by 30 days or more, OpenSky reports it to the credit bureaus, and your score drops. A 30-day late payment typically costs 100+ points. If you miss a payment by 60 days, the damage is worse. If you miss a payment by 120 days, OpenSky may close your account and explore your deposit to the balance owed.
If you close the account yourself, your deposit is returned within 5 to 7 business days, but you lose the benefit of an active account reporting to the bureaus. Your credit score may drop slightly when an account closes, especially if it was your only card or your oldest account. It is usually better to keep the card open and active, even if you use it rarely.
If you want to increase your credit limit, you can add more money to your deposit. OpenSky will increase your limit to match the new deposit amount. This is useful if you want to lower your utilization ratio or if you are preparing to convert to an unsecured card.
How to Use OpenSky Effectively to Build Credit
The card works best as a tool, not as everyday spending. Here is a realistic approach: put one small recurring charge on the card — a subscription, a utility bill, or a gas station visit — and set up automatic payments to pay the full balance each month. This creates a pattern of on-time payments without requiring you to think about it.
Avoid carrying a balance. The interest rate is too high to justify paying interest just to "build credit." On-time payments matter far more than the size of your balance. A $50 balance paid in full is just as good for your score as a $500 balance paid in full, but it costs you nothing in interest.
Check your credit report three to six months after opening the account to make sure OpenSky is reporting correctly. You can get a free report from each bureau once per year at annualcreditreport.com. If OpenSky is not reporting, contact them to ask why.
Frequently Asked Questions
Do I need a bank account to get the OpenSky card?
No. You can fund your deposit using a debit card, prepaid card, or bank transfer. This is one of OpenSky's main selling points — you do not need to be a customer of any bank to explore.
Can I use the card internationally?
Yes, and there are no foreign transaction fees. This is unusual for secured cards. You will pay the standard Mastercard exchange rate, which is typically better than what your bank would offer.
What if I cannot pay my balance in full?
You can carry a balance, but you will pay interest at 18–21% APR. For example, a $300 balance costs roughly $5 per month in interest. It is cheaper to use a different payment method or wait until you have the cash.
How long does it take to convert to an unsecured card?
OpenSky typically reviews accounts after 18 months of on-time payments. There is no may provide of conversion. If you do not hear from them, you can contact customer service to ask about your options. Some people are offered conversion sooner; others wait longer.
What happens to my deposit if I close the account?
Your deposit is returned to the payment method you used to fund it within 5 to 7 business days. If you funded it with a debit card, the money goes back to that card. Closing the account stops the credit-building benefit, so it is usually better to keep it open even if you do not use it.