Your credit score is an important part of your financial life. Good credit can help you qualify for loans and pay lower interest rates for those loans. Bad credit makes it difficult to borrow money and forces you to pay a lot of interest to lenders who are willing to let you borrow.
If you have bad credit, construction loan can feel like a chicken and egg problem. No one will give you a loan because of your bad credit, but you can’t improve your credit without getting a loan.
the Open Sky secure Visa credit card is a secure credit card designed to help people rebuild their credit. The lender doesn’t check your credit when you apply, which can help people with poor credit qualify and start rebuilding their credit.
What is the OpenSky credit card?
The OpenSky Credit Card is a secure credit card. This means that you have to provide a security deposit when you open the account. The lender takes your security deposit and uses it to determine your credit limit. Typically, your credit limit and security deposit will be the same amount.
Indeed, a secure credit card allows you to lend you money. You give a lender a few hundred dollars and they give you a card to use. The lender is ready to approve borrowers with poor credit because there is little risk. If the borrower defaults, the lender can take the security deposit to recover his loss.
When you pay your monthly bill, the card issuer will report these payments to the credit bureaus, which will help you establish your credit history. The deposit is returned when the account is closed and paid in full.
The OpenSky credit card has some useful features.
Low and refundable security deposit
One of the hardest parts of opening a secured credit card is accumulating enough savings to make a security deposit. Some cards require $ 500 or more before you can open an account.
The OpenSky credit card has a minimum security deposit of just $ 200, although you can deposit more if you want to have a higher credit limit on your card.
The security deposit is fully refundable. As long as you make the minimum required payment each month, OpenSky will keep the deposit in a separate account for you. When you’ve built your credit to a sufficient level and hopefully opened an unsecured account, you can pay off your OpenSky card balance in full, close your card, and get your security deposit back.
No credit check
Whether you have bad credit or no credit score at all, it can be difficult to qualify for a loan. Most lenders check your credit and want to see a solid history of timely payments and low debt before offering a new credit card or loan.
OpenSky does not check the credit of its applicant when making a loan decision. The main factor that determines the chances of your application is the information you provide when applying, such as your income and monthly bill payments.
If you have had trouble qualifying for other credit cards due to your credit or lack of it, this card may be a good alternative.
Related: How to improve your credit score
Reports to the three offices
There is three major credit bureaus that track scores: Experian, Equifax and TransUnion. When you apply for a loan, your lender requests your credit report from one or more bureaus.
Each month, your lenders report your credit card and loan activity to the credit bureaus, but some lenders may not report to all three. This could cause each bureau to have slightly different credit reports for you. If a lender checks two bureaus, they may see a different credit score on each report. If a lender checks only one, they may see a score lower than your actual score because that bureau doesn’t have all of your credit activity information.
The OpenSky card reports your activity to the three major credit bureaus, helping you establish your credit score on all three credit reports.
Related: How to get your real credit score
It can be difficult to understand credit and credit scores. It can also be stressful to go through the process of building your credit on your own.
OpenSky offers a Facebook community for its cardholders where the company shares credit advice and how you can help improve your credit score. You can also use the community to chat with other cardholders about how they’ve worked to improve their credit scores.
Prices and fees
One of the downsides of secured credit cards is that they tend to charge higher fees than most cards. In particular, they often charge an account creation fee and annual fee, or high penalty fees for things like missed payments.
Although the OpenSky card is not the cheapest secure card on the market, it is one of the cheapest options. There is no account creation fee and the annual fee is only $ 35. This means that you can open the account with as little as $ 235 ($ 200 for the security deposit and $ 35 to pay the annual fee).
The late payment card fee is $ 38.
The interest rate is also reasonable by credit card standards at 17.39%. However, you should do your best to make sure that you never pay interest on a credit card and always pay your bill in full at the end of each statement period. Only use the card when you know you have the money to pay it off.
While you are creating credit, you may want to only use the card for one or two small purchases per month. This is enough to help you increase your credit by making payments, but it saves you the risk of going into debt on a credit card.
You easily request the OpenSky card via OpenSky website. Like any credit card application, you will need to provide basic personal and financial information.
You will need to provide:
- Your name
- Your email address
- Your phone number
- Your physical address
- Your annual income
- Whether you rent or own your home
- Your monthly housing payment
- Your social security number
- Your date of birth
- The amount of the security deposit you wish to make
- Debit card information for security deposit
You can also choose to make your security deposit at a later date, but this will increase the time it takes to get your card.
Since OpenSky does not check your credit when reviewing your application, the main factors that affect your chances of approval are your income and your housing payment. The more you earn and the less you pay for housing, the better. Be specific when providing these numbers, even if it is tempting to fake them to improve your financial situation. OpenSky may request proof in the form of a rent or mortgage invoice and pay stubs.
OpenSky uses up-to-date security techniques to protect your information. Its website is encrypted with 128-bit SSL security, which helps protect all information sent between your computer and the OpenSky website.
Your OpenSky card has the typical security benefits. You will not be responsible for fraudulent or unauthorized purchases made with your card. If you lose your card, you can call OpenSky customer service to deactivate the card and request a replacement.
Mobile assistance / accessibility
OpenSky offers a mobile application for iOS and Android phones. You can download the app and use it to view your card balance, recent transactions, and to pay your bill.
Customer Support / Service
OpenSky offers customer support over the phone. The company does not list their support hours, but you can reach a representative by calling 1-800-859-6412.