What the Open Sky Secured Credit Card Is
The Open Sky Secured Credit Card is a secured card issued by Opensky, Inc., a financial services company. You deposit money into a savings account held by the card issuer, and that deposit becomes your credit limit — typically between $200 and $3,000. You then use the card like any other credit card, and your payment history gets reported to all three major credit bureaus: Equifax, Experian, and TransUnion.
The card has no annual percentage rate (APR) waiver period. Interest charges begin when ready on any balance you carry, and the rate varies depending on your creditworthiness at the time you open the account. Unlike some secured cards, Open Sky does not require a Social Security number to open an account — you can use an Individual Taxpayer Identification Number (ITIN) instead, which makes it accessible to non-citizens with a tax ID.
The deposit you make stays in a locked savings account and earns no interest. You cannot withdraw it while the account is open. The card itself has no rewards program, no cash back, and no sign-up bonus.
Key Takeaways
- Your credit limit equals your cash deposit, which ranges from $200 to $3,000 and earns no interest while locked.
- Interest rates on balances are not waived and begin when ready, with the rate determined by your credit profile at account opening.
- Open Sky reports to all three credit bureaus, so on-time payments build credit history that other lenders can see.
- You can use an ITIN instead of a Social Security number, making this card available to some non-citizens.
- After 18 months of on-time payments, you may be able to convert to an unsecured card and recover your deposit.
How Much the Card Costs
Open Sky charges an annual fee of $35. This is deducted from your account once per year. There is no monthly fee, no foreign transaction fee, and no fee for late payments beyond the interest charges themselves.
The interest rate on any balance you carry depends on your credit history at the time you open the account. Rates typically range from 18% to 22% APR, though the exact rate is not published in advance — you find out when you receive your account agreement. If you carry a $500 balance at 20% APR, you would pay roughly $100 per year in interest alone, plus the $35 annual fee.
The card has no grace period for purchases, meaning interest accrues on new purchases when ready if you carry any balance. This is unusual and makes the card more expensive to use than most other secured cards if you do not pay your full balance each month.
Building Credit With Open Sky
The card reports to Equifax, Experian, and TransUnion every month. This means your payment history — whether you pay on time, how much of your limit you use, and how long you keep the account open — becomes part of your credit file at all three bureaus. On-time payments are the single largest factor in credit scores, so consistent use and full monthly payments will raise your score over time.
Your credit utilization ratio (the percentage of your limit you use each month) also affects your score. If your limit is $500 and you carry a $250 balance, your utilization is 50%. Credit scoring models favor utilization below 30%, so keeping your balance low relative to your limit helps your score more than paying it off completely at the end of the month.
The card does not offer a path to an unsecured card automatically. However, Open Sky states that after 18 months of on-time payments, you may be able to convert to an unsecured card and have your deposit returned. This is not may provide — the company reviews your account and decides whether to offer the conversion. Some cardholders report the conversion happening sooner, while others say they were denied.
Who This Card Makes Sense For
Open Sky is most useful if you have no credit history or a very poor credit history and cannot get a traditional secured card. The ITIN option makes it one of the few secured cards available to non-citizens without a Social Security number. If you are rebuilding credit and need to report to all three bureaus, this card will do that.
The card is less useful if you can get a secured card with no annual fee or a lower interest rate. Many banks and credit unions offer secured cards with $0 annual fees and APRs in the 15% to 18% range. Comparing offers before you explore is worth the time, because the $35 annual fee and higher interest rates add up quickly if you carry a balance.
The lack of a grace period makes this card expensive to use if you plan to carry a balance month to month. If you can pay your full balance every month, the interest rate does not matter — you will pay no interest. But if you cannot, the when ready interest accrual makes this card more costly than alternatives.
How to Open an Account
You can open an Open Sky account online through the company's website. You will need to provide your name, address, date of birth, and either a Social Security number or an ITIN. The company performs a soft credit pull, which does not affect your credit score. There is no hard credit pull, so your credit history does not disqualify you from opening an account.
Once your process is approved, you fund the account by making a deposit via bank transfer or check. The deposit becomes your credit limit and is held in a locked savings account. Your card typically arrives within 7 to 10 business days after funding.
You can make your first purchase as soon as your card arrives. Payments are made online, by phone, or by mail. The company does not offer automatic payments, so you must manually pay your bill each month to avoid late fees and interest charges.
Comparing Open Sky to Other Secured Cards
Several other secured cards exist, and they vary significantly in cost and features. Capital One Secured MasterCard has no annual fee and an APR range of 18.99% to 24.99%. Discover Secured Card has no annual fee and an APR range of 16.99% to 24.99%, plus it offers 2% cash back on dining and gas purchases and 1% on all other purchases. Both cards have a grace period for purchases, meaning you can avoid interest if you pay your full balance by the due date.
The main advantage Open Sky has over these competitors is the ITIN option. If you do not have a Social Security number, Open Sky may be your only choice among major secured card issuers. If you do have a Social Security number, Capital One or Discover are likely cheaper and offer more features.
Credit unions sometimes offer secured cards to their members with lower fees and rates. If you have access to a credit union, asking about their secured card options before explore for Open Sky is worth doing.
What Happens to Your Deposit
Your deposit stays locked in a savings account for as long as your card account is open. You cannot withdraw it, transfer it, or use it to pay your card bill. The deposit earns no interest. If you close the card account, your deposit is returned to you, typically within 5 to 7 business days.
If you convert to an unsecured card after 18 months of on-time payments, your deposit is returned and your credit limit becomes unsecured. This means you no longer have to maintain a cash deposit to keep the card open. However, conversion is not automatic — Open Sky reviews your account and decides whether to offer it.
If you miss payments or default on the account, Open Sky can use your deposit to cover the debt. This is a key difference between a secured card and a regular credit card: the issuer has a direct claim on your cash if you do not pay.
Frequently Asked Questions
Can I use an ITIN instead of a Social Security number?
Yes. Open Sky accepts an ITIN as proof of tax identification, which makes it one of the few secured cards available to non-citizens. You will need to provide your ITIN during the process process, and the company will verify it with the IRS.
What happens if I miss a payment?
Late payments are reported to the credit bureaus and damage your credit score. Open Sky charges late fees (the amount varies) and begins charging interest on the missed amount. If you miss multiple payments, the company may close your account and use your deposit to cover the debt.
Can I increase my credit limit?
Your credit limit is fixed at the amount of your deposit. To increase your limit, you would need to add more money to your locked savings account. Open Sky allows deposit increases, though the process and any limits on how much you can add vary.
How long does it take to build credit with this card?
Credit bureaus begin reporting your account within 30 to 45 days of opening it. Your score may start to improve within a few months of on-time payments, though significant improvement typically takes 6 to 12 months of consistent use. The longer you keep the account open and the more on-time payments you make, the more your score improves.
Is there a grace period for purchases?
No. Open Sky does not offer a grace period, so interest accrues on new purchases when ready if you carry any balance. This makes the card expensive to use if you cannot pay your full balance each month. Paying your balance in full before the due date is the only way to avoid interest charges.