OpenSky is a secured card designed for people rebuilding credit, but it comes with costs that make it unsuitable for most other situations
The OpenSky Credit Card requires a cash deposit that becomes your credit limit — typically between $200 and $3,000. You keep the deposit in a locked savings account while you use the card. The card reports to all three credit bureaus, which means on-time payments build your credit history. However, the annual fee is $35, the interest rate is high (around 19.99% APR), and you earn no rewards. It works best if you have been denied by other cards and need to demonstrate you can handle credit responsibly over time.
The real question is not whether OpenSky works, but whether it is the cheapest way to rebuild credit. For most people, it is not. Capital One Secured and Discover Secured both charge no annual fee and report to the same bureaus. If you have already been denied by those cards or need to open an account when ready, OpenSky may be your only option. Otherwise, you are paying $35 per year for the same credit-building benefit you can get for free.
Key Takeaways
- OpenSky requires a cash deposit equal to your credit limit, which stays locked in a savings account you cannot touch while the card is open.
- The $35 annual fee and 19.99% APR make this card expensive to carry, so you should plan to graduate to an unsecured card within 12 to 24 months.
- OpenSky reports to all three credit bureaus, so consistent on-time payments will improve your credit score if you have little or no credit history.
- You earn no cash back, points, or other rewards, so this card is purely a credit-building tool, not a spending card.
- If you have been denied by other secured cards or have no credit history at all, OpenSky may be one of your only options.
How the deposit and credit limit work
When you open an OpenSky account, you choose a deposit amount between $200 and $3,000. That deposit becomes your credit limit — if you deposit $500, your limit is $500. The deposit sits in a savings account held by the card issuer and earns no interest. You cannot withdraw it or use it to pay your bill while the account is open.
This structure protects the card issuer because they already have your money if you stop paying. For you, it means you are putting up cash upfront to borrow the same amount. You will pay interest on any balance you carry, just as you would with a regular credit card, even though the issuer already holds your deposit as collateral. The deposit is not a payment — it is a security hold that sits untouched for as long as you keep the account open.
The annual fee and interest rate compared to other secured cards
OpenSky charges $35 per year, which is higher than many competitors. Capital One Secured and Discover Secured both charge $0 annual fees. Chime Secured charges $0 and offers a higher starting limit ($500 minimum versus OpenSky's $200). If you carry a balance, OpenSky's 19.99% APR is standard for secured cards but still expensive — you will pay roughly $20 per year in interest on every $1,000 you owe.
The combination of the annual fee and high interest rate means OpenSky is not a card to keep long-term. If you plan to carry a balance for more than a few months, the cost adds up quickly. The card makes sense only if you intend to pay your full statement balance each month and graduate to an unsecured card within a year or two. Over three years, the $35 annual fee alone costs $105 — money you could avoid by choosing a competitor with no annual fee.
Credit reporting and how it affects your score
OpenSky reports your payment history, credit utilization, and account age to Equifax, Experian, and TransUnion. This means every on-time payment helps your score, and every late payment hurts it. If you have no credit history or a very thin file, this reporting is valuable — you are building a track record that other lenders can see.
The credit-building benefit is real but takes time. Most people see meaningful score improvement after 6 to 12 months of on-time payments. Your score will also improve as your deposit sits in the account, because the account age counts toward your credit history. However, if you miss a payment, the damage is when ready and visible to all three bureaus. The reporting works both ways — it accelerates improvement when you pay on time, and it accelerates damage when you do not.
When OpenSky makes sense and when it does not
OpenSky is a reasonable choice if you have been denied by other secured cards, have no credit history at all, or need a card quickly and do not mind the $35 annual fee. It is also straightforward — no income verification, no credit check that affects your score, and a decision within minutes. The process process is faster than most competitors, which matters if you need to start building credit when ready.
OpenSky is not a good choice if you have already been approved for Capital One Secured, Discover Secured, or Chime Secured, because those cards have lower or no annual fees and similar credit-building benefits. It is also not a good choice if you plan to carry a balance for more than a few months, because the interest and fees will outweigh the credit-building benefit. And it is not a spending card — you earn no rewards, so using it for everyday purchases is straightforward paying to build credit.
How to use OpenSky to actually improve your credit
If you open an OpenSky account, keep your utilization below 30% of your limit. If your limit is $500, do not charge more than $150 per month. Pay your full statement balance on time every single month — late payments are reported when ready and damage your score far more than any benefit you gain from the account. Set up automatic payments if you tend to forget.
Plan your exit from the card. After 6 to 12 months of on-time payments, you should be approved for an unsecured card with no annual fee and better terms. Once you have that card, you can close the OpenSky account and recover your deposit. The goal is to use OpenSky as a stepping stone, not a permanent card. Track your credit score during this time using a free service like Credit Karma or AnnualCreditReport.com so you know when you are ready to move on.
Alternatives if you are denied by OpenSky
OpenSky does not require a credit check, but it does require a valid Social Security number and a U.S. bank account. If you cannot meet those requirements, you have few options. Some credit unions offer secured cards with lower fees and no credit check. If you have a bank account with a major bank, ask whether they offer a secured card — many do, and the terms are often better than OpenSky.
If you have a thin credit file but not a bad one, you may be approved for a regular unsecured card before you need OpenSky. Capital One Platinum and Discover It Secured are both easier to get than they were five years ago, and both have no annual fee. It is worth explore to those first. If you are denied, OpenSky becomes a reasonable backup option because at least you know you can open an account there.
Frequently Asked Questions
Can I get my deposit back before closing the account?
No. Your deposit stays locked until you close the account. Once you close it, OpenSky will return your deposit to the bank account you used to fund it, usually within 5 to 7 business days. You cannot withdraw it early or use it to pay your bill.
What happens if I miss a payment?
A missed payment is reported to all three credit bureaus and will lower your score. OpenSky may also charge a late fee (typically $25 to $35) and increase your interest rate. If you miss a payment, contact OpenSky when ready to bring the account current and ask whether they will waive the late fee.
Will OpenSky graduate me to an unsecured card?
OpenSky does not automatically convert secured accounts to unsecured ones. After 6 to 12 months of on-time payments, you can request a credit limit increase without adding more deposit, which is a step toward unsecured status. However, your best path is to explore for an unsecured card elsewhere once your score improves.
Does OpenSky do a hard pull on my credit?
No. OpenSky does not perform a hard inquiry, so opening an account does not lower your credit score. This makes it a low-risk way to start building credit if you have no history or a very poor score.
What is the minimum deposit, and can I start small?
The minimum deposit is $200, which becomes your credit limit. You can start with $200 and request a credit limit increase after several months of on-time payments. Each increase requires an additional deposit, so you are not forced to lock up large amounts of cash upfront.