If you have bad credit, trying to get approved for a credit card is nearly impossible.
And yet, making monthly credit card payments is one of the best ways to improve your credit.
It’s a catch-22.
So how do you get approved for a credit card if your credit is less than ideal?
Enter the Open Sky Secured Credit Card. This card is the ideal fit for those looking to improve their credit.
Read on as we review everything you need to know about this credit card. Then you can make an informed decision if it is right for you.
The Pros: Building Credit with an Open Sky Secured Visa
The Open Sky Secured Visa Credit Card features many benefits including:
No Credit Check: Open Sky Secured Card removes the credit barrier by eliminating credit checks in the application process. And no credit check means there’s no negative effect on your credit score.
Lower Interest Rate: The interest rate is lower than other secured credit cards.
You Define Your Credit Limit: The amount you deposit sets your credit limit. It can be as low as $200 and as high as $3000. This security deposit is refundable once your account is closed.
Build Credit: According to Open Sky, 99% of their members who start with no credit achieve a positive credit score within six months of activating their card.
Once approved, use your card to pay for your usual monthly expenses such as groceries and utilities. If you limit your transactions to your monthly bills, your budget will remain unaffected.
Pay your balance each month before the due date to avoid paying interest and receive a boost to your credit.
The Cons: Open Sky Secured Card
Annual Fee of $35: Annual fees are a pain, but when you consider the credit-building benefits of this card, $35 is a reasonable trade-off.
Variable Interest Rate: The interest rate is 19.14% but if you are late for a payment the interest rate jumps to 22.50% plus a $27 late fee.
$25 Fee for Credit Limit Change: In your first 12 months as an account holder, you can add to your security deposit for free anytime you wish. Having a higher limit helps to improve your credit score because of the improved credit utilization.
After the first year, though, you are required to pay $225 whenever you add to your deposit or draw from it.
It’s advised to have your security deposit maximized at $3,000 before the end of one year and do not adjust it thereafter.
3% Transaction Fee: This isn’t a problem until you travel abroad and this transaction fee becomes a nuisance. You want to have fun when you travel, and not be bothered by paying an extra 3% for every purchase.
Final Thoughts: Open Sky Secured Credit Card Review
You can find other cards with lower fees and lower initial deposit requirements. But the Open Sky Secured Credit Card is worth it for two reasons: They do not require a credit check or a bank account to apply.
The card is ideal for those with little credit or no credit at all. Make monthly payments on time and your credit will rise in approximately 6 months or so.
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