What the OpenSky Secured Visa Card is and who it's for
The OpenSky Secured Visa Card is a secured credit card issued by Opensky, a financial technology 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 Visa, and your payment history gets reported to all three credit bureaus: Equifax, Experian, and TransUnion.
This card is designed for people rebuilding credit after missed payments, collections, or a thin credit file. Because the card is secured by your own deposit, OpenSky does not run a traditional credit check. That means you can open an account even if you have recent negative marks on your credit report.
The trade-off is cost. OpenSky charges an annual fee, a monthly maintenance fee, and interest rates that are higher than cards offered to people with established credit. You are paying for the ability to build a credit history when other lenders will not take the risk.
Key Takeaways
- Your security deposit sets your credit limit, and OpenSky holds that money in a savings account while you use the card.
- The card charges an annual fee of $35, a monthly maintenance fee of $7, and a variable interest rate that starts around 19.9% APR.
- Payment history reports to all three credit bureaus each month, so on-time payments directly build your credit score.
- After 18 months of on-time payments, you may be able to move to an unsecured card and recover your deposit, though OpenSky does not may provide this.
- The total cost of holding this card for one year is at least $119 in fees alone, plus interest if you carry a balance.
Fees and interest rates you will pay
OpenSky charges $35 per year as an annual fee, billed once. You also pay $7 per month as a maintenance fee, which adds up to $84 per year. Together, those two fees cost $119 in the first year and every year after, regardless of whether you use the card.
The interest rate (APR) is variable and starts at around 19.9%, though the exact rate depends on the current market and the terms OpenSky is offering when you open your account. If you carry a balance from month to month, you will pay interest on that balance at this rate. If you pay your full statement balance by the due date each month, you pay no interest.
OpenSky also charges a late fee if your payment arrives after the due date. The fee structure varies, but late payments also damage your credit score and may trigger a higher interest rate on future balances.
How your security deposit works
When you open an account, you choose how much to deposit — between $200 and $3,000. OpenSky holds this money in a savings account in your name. Your credit limit equals your deposit amount. If you deposit $500, your limit is $500.
The deposit earns interest, though the rate is very low — typically well below 1% annually. You do not have direct access to this account; you cannot withdraw from it while the card is open. The money stays locked until you close the account or graduate to an unsecured card.
If you stop paying your card bill, OpenSky can use your deposit to cover the debt. This is the main reason the card exists: your own money is collateral, so OpenSky takes on almost no risk.
Building credit with on-time payments
Every month, OpenSky reports your payment activity to Equifax, Experian, and TransUnion. If you pay on time, that positive mark goes on your credit report. If you miss a payment, that negative mark also goes on your report. Over time, a pattern of on-time payments raises your credit score.
The effect depends on your starting point. If you have no credit history, on-time payments will build your score from scratch. If you have recent missed payments or collections, on-time payments will gradually offset those negative marks, but it takes time — usually 12 to 24 months of consistent behavior before you see major improvement.
Credit utilization also matters. Your credit score is partly based on how much of your available credit you use. 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 — in this example, below $150 — helps your score rise faster.
When you can move to an unsecured card
OpenSky does not publish a specific timeline for graduation to an unsecured card. The company reviews accounts periodically and may offer you an unsecured Visa after 18 months of on-time payments, though this is not may provide. Some cardholders graduate sooner; others never receive an offer.
When you graduate, OpenSky returns your deposit to you. You keep the card, but it is no longer secured — you are now a regular cardholder with a credit line based on your credit score and income, not your deposit. The annual and monthly fees may change at that point.
If you close the card yourself before graduating, you can request your deposit back. OpenSky will return it, but closing the card removes an active account from your credit report, which can temporarily lower your score. It is usually better to keep the card open and use it occasionally, even after you have built enough credit to open other cards.
Comparing OpenSky to other secured cards
Other secured card options exist, and they differ in cost and features. The Capital One Secured Mastercard, for example, charges a $39 annual fee but no monthly maintenance fee, making it cheaper over time if you keep the card for multiple years. The Discover Secured Card charges no annual fee and no monthly fee, though it requires a higher minimum deposit of $200.
The trade-off is that cards with lower fees may have higher interest rates, or they may be harder to open if your credit is very damaged. OpenSky accepts people with recent collections or charge-offs that other issuers might decline. If your credit is extremely thin or recent, OpenSky may be one of the few options available.
Before opening any secured card, compare the total cost of ownership: annual fee plus monthly fees, multiplied by how long you plan to hold it, plus the interest rate if you think you might carry a balance. A card with a higher annual fee but no monthly fee might cost less over 24 months than one with a low annual fee and high monthly charges.
What happens if you miss a payment
If you miss a payment, OpenSky reports it to the credit bureaus, and your credit score drops. A single missed payment can lower your score by 50 to 100 points, depending on your current score and credit history. The damage gets worse if the account goes to collections.
OpenSky may also use your security deposit to cover the missed payment and any fees. If your deposit is $500 and you miss a $200 payment plus a $35 late fee, OpenSky can take $235 from your deposit, leaving you with a $265 limit and a $265 deposit balance. Your credit limit shrinks along with your deposit.
If you know you cannot make a payment, contact OpenSky before the due date. The company may not offer a hardship program, but calling ahead is better than missing the payment outright. A missed payment stays on your credit report for seven years.
Frequently Asked Questions
Do I need good credit to open an OpenSky card?
No. OpenSky does not run a traditional credit check and does not require a minimum credit score. The card is designed for people with poor credit, no credit history, or recent negative marks. You do need to be at least 18 years old and a U.S. resident with a valid Social Security number.
Can I use my security deposit while the card is open?
No. Your deposit stays locked in a savings account held by OpenSky. You cannot withdraw it or transfer it while the card is active. The only way to recover your deposit is to close the card or graduate to an unsecured card, at which point OpenSky returns the money to you.
How long does it take to build credit with this card?
Credit scores begin to improve within 30 to 60 days of opening the account, assuming you make on-time payments. Significant improvement — enough to open other cards or lower interest rates on loans — typically takes 12 to 24 months of consistent, on-time payments. The exact timeline depends on your starting credit score and credit history.
What is the difference between the security deposit and the credit limit?
They are the same amount. If you deposit $500, your credit limit is $500. The deposit is collateral; the credit limit is how much you can borrow. When you use the card, you are borrowing against your own money, which is why OpenSky can offer the card to people with poor credit.
Can I increase my credit limit?
Yes, but only by increasing your security deposit. If you want a higher limit, you deposit more money into your savings account, and your limit rises to match. You cannot increase your limit without increasing your deposit. Some cardholders increase their deposit over time as their financial situation improves.