OpenSky Plus Secured Review: No Annual Fee or Credit Check

The OpenSky® Plus Secured Visa® Credit Card has a lot of upside for those with poor credit (credit scores of 629 or lower). Unlike some other credit cards in its class, the annual fee is $0, you don't need a bank account to get it, and there's no credit check when you apply, meaning there'll be no temporary impact on your credit scores.

If you're unbanked and/or have struggled to get approved for a credit card, that can be a powerful combination of features. But there are some trade-offs.

Since it's a secured credit card, the OpenSky® Plus Secured Visa® Credit Card requires an upfront security deposit. Usually, the minimum requirement is $300, which is a little higher than other secured cards. And while you can get that deposit back once you've demonstrated responsible card use — such as paying your bill on time — you don't have great options for moving up to a better product with OpenSky when you're ready. In fact, none of OpenSky's credit cards earn rewards, whereas some starter credit cards do.

» MORE: NerdWallet's best credit cards for bad credit

OpenSky® Plus Secured Visa® Credit Card: Basics

Card type: Secured.

Annual fee: $0.

Security deposit: Normally $300 minimum, $3,000 maximum. Secured credit cards require you to provide a refundable security deposit, which determines your credit limit. The issuer holds this deposit as collateral in case you don't pay your bill. The OpenSky® Plus Secured Visa® Credit Card lets you pay your deposit in installments, but terms apply. More on that below.

Rewards: None.

Sign-up bonus: None.

Foreign transaction fee: 3%.

APR: The ongoing APR is 29.99% Variable APR.

No annual fee

The OpenSky® Plus Secured Visa® Credit Card doesn’t charge an annual fee, making it less expensive to carry than other credit cards for bad credit (including its cousin, the OpenSky® Secured Visa® Credit Card). The absence of an annual fee puts the OpenSky® Plus Secured Visa® Credit Card in direct competition with other $0-annual fee secured cards such as the Capital One Platinum Secured Credit Card and the Chime Secured Credit Builder Visa® Credit Card.

No credit check required

The OpenSky® Plus Secured Visa® Credit Card joins a growing list of credit cards that don't require a credit check in order to qualify. Here's why that might matter: A hard pull on your credit report can cause your credit score to temporarily dip a few points, a less-than-ideal consequence for people who already have bad credit. By not requiring a credit check, OpenSky® Plus Secured Visa® Credit Card better serves its target consumer trying to restore their credit. 

No bank account required

You don't need to have a bank account to qualify for the OpenSky® Plus Secured Visa® Credit Card, which sets it apart from most other cards on the market. To fund the security deposit, you can use a money order or Western Union payment, and you can also pay your monthly bill with a money order if you so choose. Just be aware that these funding methods come with their own costs.

Security deposit may be paid in installments

Putting up the money (normally $300) to fund the security deposit for the OpenSky® Plus Secured Visa® Credit Card might feel daunting, but the deposit can be paid in increments, as long as it's paid within 60 days. The minimum payment amount is $25. If by the end of the 60 days the deposit hasn’t been paid, consumers will have to reapply for the card.

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

The OpenSky® Plus Secured Visa® Credit Card has a sibling card: the OpenSky® Secured Visa® Credit Card. Aside from their names, the primary differences are that the Plus version charges a $0 annual fee and typically requires a $300 minimum security deposit. In comparison, the non-Plus version has an annual fee of $35, but the normal security deposit is $200. Here's how the two cards compare:

Relatively steep security deposit

Normally, the minimum security deposit for the OpenSky® Plus Secured Visa® Credit Card is $300 — significantly more than it is for the OpenSky® Secured Visa® Credit Card and for many other secured credit cards. As mentioned earlier, you can eventually get the security deposit back, and you’re able to pay for the deposit in installments. Still, a $300 out-of-pocket expense that may not be refunded until months later can be a significant financial burden.

If you can’t or don’t want to tie up hundreds of dollars to open a credit card, consider cards without a security deposit requirement, such as the Mission Lane Visa® Credit Card.

No rewards 

The primary objective of a secured card is to build or mend your credit, not earn rewards. But getting cash back on purchases made with your card is still a nice perk. If you have bad credit but want a card that earns rewards, your options are limited to a few secured cards, including the Discover it® Secured Credit Card and the Capital One Quicksilver Secured Cash Rewards Credit Card. 

Poor upgrade options

After six months of using the OpenSky® Plus Secured Visa® Credit Card, you can be considered for a credit line increase and a possible upgrade to an unsecured credit card called the OpenSky Gold card. No additional application or credit check is required for invitation recipients. But the OpenSky Gold card is far from the best unsecured credit card on the market. It comes with a $59 annual fee and a maximum credit limit of only $700, and it doesn’t earn rewards.