What the Open Sky Card Is and Who It's For
The Open Sky Credit Card is a secured card issued by Opensky, a financial technology company. You put down a cash deposit — typically between $200 and $3,000 — and that deposit becomes your credit limit. You use the card like any other credit card, paying a monthly bill. The deposit stays in a locked savings account and earns a small amount of interest while you hold the card.
This card is built for people rebuilding credit after missed payments, collections, or a period without any credit history. Because your deposit secures the card, Opensky takes less risk, which is why they approve people that traditional card issuers turn down. The tradeoff is that you pay an annual fee — currently $35 — and the interest rate is higher than you'd see on an unsecured card.
The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history actually moves your credit score. That's the whole point: you're building a record that future lenders will see.
Key Takeaways
- Your deposit becomes your credit limit, and the deposit stays locked in a savings account earning interest while you use the card.
- The card charges a $35 annual fee and a higher interest rate than unsecured cards, but reports to all three credit bureaus.
- After 18 months of on-time payments, you can request that Opensky convert the card to unsecured, which means you get your deposit back and the annual fee drops.
- You can increase your credit limit by adding more money to your deposit, up to $3,000 total.
- Missing a payment or carrying a high balance relative to your limit will hurt your credit score, so the card only helps if you use it responsibly.
How Your Deposit and Credit Limit Work
When you open an Open Sky account, you choose how much to deposit. The minimum is $200 and the maximum is $3,000. That amount becomes your credit limit when ready. If you deposit $500, you can charge up to $500 on the card each month.
Your deposit sits in a savings account that Opensky holds. You cannot touch it while the card is active and secured. Opensky pays interest on the deposit — the rate varies but is typically very low, less than 1 percent annually. The interest accrues in your deposit account, so over time the balance grows slightly, but you won't see that money unless and until the card converts to unsecured or you close the account.
If you want a higher credit limit, you can add more money to your deposit. You can increase it up to $3,000 total. Each time you add funds, your credit limit goes up by that amount. This is useful if you've been paying on time and want to show lenders you can handle more credit.
Fees, Interest Rates, and the True Cost
The Open Sky card charges a $35 annual fee, charged to your account once per year. This is separate from interest charges. The interest rate — the APR, or annual percentage rate — is currently around 19.99 percent, though the exact rate depends on your creditworthiness at the time you open the account. That's higher than most unsecured cards, but typical for secured cards aimed at people rebuilding credit.
Interest only applies to balances you carry from month to month. 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, interest accrues on the remaining $150. The math: if you carry a $300 balance for a full year at 19.99 percent APR, you'll pay roughly $60 in interest charges.
There are no foreign transaction fees if you use the card abroad, which is unusual for secured cards. There is no penalty APR — the rate doesn't jump if you miss a payment, though missing a payment will damage your credit score and may trigger late fees from the card issuer.
Building Credit and Converting to Unsecured
The Open Sky card reports your payment history to Equifax, Experian, and TransUnion every month. This means every on-time payment helps your credit score, and every late payment hurts it. The card also reports your credit utilization — the percentage of your limit you're using each month. Using less than 30 percent of your limit is ideal for your score.
After 18 months of on-time payments, you can request that Opensky convert your card to unsecured. If approved, your deposit is returned to you, and the $35 annual fee is waived going forward. The interest rate may also drop, though Opensky doesn't may provide this. Conversion is not automatic — you have to ask for it, and Opensky will review your account to make sure you've been paying on time.
Some people use the Open Sky card for 18 to 24 months, then convert it and move to a different card with better terms. Others keep it as a backup card in their wallet. Either way, the goal is to use it responsibly so that by the time you convert, your credit score has improved enough that other lenders will offer you better options.
How to Use the Card Without Damaging Your Score
The card only helps your credit if you use it responsibly. Here's what that means in practice: charge something small each month — a subscription, a gas fill-up, groceries — and pay the full balance by the due date. This shows lenders you can borrow and repay reliably.
Avoid carrying a balance. If you charge $200 and pay $200 by the due date, you build credit history with zero interest cost. If you charge $200 and pay $100, you're paying interest and signaling to credit bureaus that you're struggling to manage debt. Over time, that hurts your score.
Keep your utilization low. If your limit is $500, try not to charge more than $150 in any given month. The lower your balance relative to your limit, the better it looks to credit scoring models. This is one reason why adding to your deposit (and raising your limit) can help — a $300 charge looks better against a $1,000 limit than against a $500 limit.
Comparing Open Sky to Other Secured Cards
Open Sky is one of several secured cards on the market. The main competitors are the Capital One Secured Mastercard, the Discover it Secured Card, and the U.S. Bank Altitude Go Visa Secured Card. Each has different deposit minimums, annual fees, interest rates, and conversion timelines.
Open Sky's main advantage is that it has no credit score requirement — the company doesn't pull your credit at all during the process process. This makes it accessible to people with very poor credit or no credit history. The deposit range ($200 to $3,000) is also wider than some competitors, giving you flexibility in how much to put down.
The main disadvantage is the $35 annual fee and the 19.99 percent APR, both of which are on the higher end for secured cards. If you have access to a card with a lower annual fee or lower interest rate, that may be a better choice. But if you've been turned down by other issuers, Open Sky is often still an option.
What Happens If You Miss a Payment or Close the Account
If you miss a payment on the Open Sky card, the company will report it to the credit bureaus, and your credit score will drop. A single late payment can lower your score by 50 to 100 points or more, depending on your current score. The damage is worst in the first 30 days after the missed payment, but the late payment stays on your credit report for seven years.
If you close the account, your deposit is returned to you, usually within 5 to 7 business days. However, closing the account can also hurt your credit score in the short term because it reduces your total available credit and removes an active account from your credit history. If you're rebuilding credit, it's usually better to keep the card open and active, even if you're not using it much.
If you want to close the account, wait until your credit score has improved enough that you have other cards or credit accounts in good standing. That way, closing Open Sky won't leave you with a thin credit file.
Frequently Asked Questions
Do I need good credit to get the Open Sky card?
No. Open Sky does not check your credit score during the process process. The company approves based on your deposit and identity verification, not your credit history. This makes it one of the easiest secured cards to get if you have poor credit or no credit at all.
Can I use my deposit as a payment if I can't pay my bill?
No. Your deposit is locked and cannot be used to make your monthly payment. You must pay your bill from your regular bank account or income. If you can't pay, contact Opensky to discuss your options — they may be able to work with you, but missing a payment will damage your credit score.
How long does it take to convert to an unsecured card?
You can request conversion after 18 months of on-time payments. Opensky typically reviews your request within 30 days. If approved, your deposit is returned and the card becomes unsecured. If denied, you can request again later.
What if I want to increase my credit limit?
You can add more money to your deposit to increase your limit. You can deposit up to $3,000 total. Each additional deposit increases your limit by that amount. There's no waiting period — the increase is usually reflected within one business day.
Does Open Sky offer a rewards program?
No. The Open Sky card does not earn cash back, points, or travel rewards. The card is designed for credit building, not rewards. Once you convert to an unsecured card or move to a different card, you can look for rewards programs.