OpenSky Secured Visa Review: No Credit Check Necessary

No credit check required

Bad credit can make it hard to qualify for credit cards — even secured credit cards, in some cases. It won't stop you from qualifying for the OpenSky® Secured Visa® Credit Card, though, which doesn't run a credit check when you apply.

To be sure, approval isn’t guaranteed. To qualify, you'll still need to meet certain requirements. For example, you’ll need to:

• Provide a Social Security number or individual taxpayer identification number.

• Be a U.S. citizen or permanent resident.

• Have a monthly income greater than your monthly expenses.

• Pay a security deposit, which will be refunded if the account is upgraded or closed in good standing.

Overall, though, it's relatively easy to get approved for this card. And if you've racked up rejections already, the lack of a credit check might make this card a compelling choice.

» MORE: Is the OpenSky Card legit?

No bank account required

Most cards require you to have a bank account, putting them out of reach for the unbanked. The OpenSky® Secured Visa® Credit Card doesn't. You can pay the security deposit with a money order or a Western Union payment. Credit card bills can also be paid by money order. However, if you already use these services, you know that they cost money, which adds up over time.

Activity reported to all three credit bureaus

A card that reports your activity to all three major credit bureaus, as this one does, is a good thing when you make your payments on time and stay well below your credit limit. The three major consumer credit bureaus — TransUnion, Equifax and Experian — gather the information to calculate your credit scores.

A good credit score — one that's 690 or higher — can make life easier and save you money in the long run. For example, such a score could help you get approved for an apartment, get cell phone service without an upfront deposit, qualify for credit cards with richer rewards and perks, and get mortgages and car loans with lower interest rates. (With the OpenSky® Secured Visa® Credit Card, you can track your progress toward that better standing, too, since you have access to your FICO score through your account.)

How it compares to the OpenSky® Plus Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card is similar in name and features to the OpenSky® Plus Secured Visa® Credit Card. Both are issued by Capital Bank, but there are differences: The Plus version charges a $0 annual fee and normally requires a $300 minimum security deposit, whereas the non-Plus version has an annual fee of $35 but usually requires only a $200 upfront deposit. Here's how they compare:

Annual fee

Most secured cards from major issuers don't charge an annual fee. In contrast, the OpenSky® Secured Visa® Credit Card charges an annual fee of $35, making it a more costly option — and much less appealing for those who are able to qualify for other cards. But it's still a much better option than certain unsecured cards for people with bad credit that charge annual fees of $75 or $99.

Limited upgrade path

For years, the OpenSky® Secured Visa® Credit Card didn't have an option to upgrade your account to an unsecured credit card — one without a security deposit. That appeared to change in 2021 with the launch of the unsecured OpenSky Visa® Gold Card. According to the issuer, Capital Bank, secured cardholders may be eligible for the Gold card in as little as six months if they demonstrate responsible credit behavior.

The ability to upgrade is good for a couple of reasons. It means you won't have to keep hundreds of dollars tied up in a security deposit indefinitely. And if you can convert your secured card to an unsecured option without having to close your account, that can be good for your credit score, since closing an account can have an impact on the "length of credit history" aspects of scoring formulas, as well as on your utilization ratio.

OpenSky doesn't provide much information about the Gold card, though. Capital Bank says applications are accepted by invitation only. Reports from OpenSky cardholders who have been offered the Gold card suggest that, at least in some cases, it charges an annual fee of $59. It's also not clear whether the offer involved a true account upgrade or simply the opportunity to apply for an unsecured card.

Things are much more straightforward with the Discover it® Secured Credit Card. Discover automatically starts reviewing your account after seven months to see whether you're eligible for an upgrade. You’ll need a bank account, however, and the issuer runs a credit check. The Discover it® Secured Credit Card has a $0 annual fee and even offers a solid cash-back rewards program. Then, once your credit is in good shape, you could qualify for one of our best credit card offers.

Lower deposit may be available