Opensky Secured Visa Credit Card
If you are thinking about applying for an OpenSky Secured Visa Credit Card, you won’t need to worry about having no credit or your bad credit history because OpenSky because they don’t do credit checks. It is a secured credit card where you pay them a lump sum in advance and then borrow your own money back from them and pay them interest.
Who Are OpenSky Trying To Fool?
Why would anybody pay a company a lump sum, just so they may borrow back their own money with interest? Typically, desperate people use secured credit cards. For example, some people use them because secured credit cards are the only access to credit they can get and it is one way they may actively rebuild their credit. I say, “One Way” because we completed a very comprehensive series on credit repair that you should probably look at before you start applying for secured credit cards.
How To Build Credit When You Have No Credit History
How Long Does It Take to Repair Your Credit? Part One
How Long Does It Take to Repair Your Credit? Part Two
How Long Does It Take To Repair Your Credit? Part Three
How Long Does It Take to Repair Your Credit? Part Four
Some people use secured cards such as Opensky Secured Visa Credit Card to try to rebuild their credit. Some people need a credit card, and they get a secured credit card because a secured card is the only credit card they can get. People need credit cards to book into hotels, to rent cars, and even to buy cryptocurrency. If you can avoid credit cards and secured credit cards…then go out of your way to avoid them.
Your Credit Limit
You may choose a credit limit as low as $200 because that is the lowest deposit limit they have. OpenSky report to all three major credit bureaus, which is good if you keep your account in order, but it means you are highly exposed, which means you are guaranteed to see a drop in your credit score if you miss a payment.
Applying For The Opensky Secured Visa Credit Card
Applying is very easy, and it will only take you 5 minutes to do online. When you are applying for the credit card, it will give you four steps you need for follow.
Step 1 – They ask for your name, age and social security number.
Step 2 – They ask for your home address, mobile number or email address.
Step 3 – They ask for your financial information, such as your annual income and how much your rent is.
Step 4 – Involves filling out your security deposit information. Read and agree to the terms and conditions, and you will be able to submit it your application.
Opensky Secured Visa Credit Card Fees
These are the fees that Opensky Secured Visa Credit Card are charging. There is one potentially hidden fee, which is discussed in the section below, and there are three completely unreasonable fees that are discussed after the section on hidden fees. The fees listed in this section are their run-of-the-mill fees.
Regular APR: 18.64%
Cash Advance APR: 18.64%
Minimum Interest Charge: $1.00
Annual Fee: $35
Cash Advance Fee: $6 minimum and up to $150 (5% of total advance)
Foreign Transactions: 3% of the transaction in USD
Late Payments: $27.00
Returned Payments: $25.00
The Fees – Hidden Or Otherwise
OpenSky does not have any hidden charges, and all their fees are available to download online if you want to see for yourself. You need to go to their FAQ section and look for the link to their fees PDF. There is a possible hidden fee, and that is for paper billing. They may charge you $3 per month to send you a paper bill, and the trouble is that some people still receive the fee even if they opt for paperless billing, though we didn’t have that problem ourselves. Still, you should keep track of what is being charged to your account just in-case you are one of the unlucky ones who is being charged a paper-statement fee when you are not receiving paper statements.
The Fees – The Unreasonable Charges
The “Inactive Account Fee” is charged after 12 months of no activity on your credit card account. The “Dormant Account Fee” is added after 36 months of no activity, and it is added on top of the $10 per month you are already being charged for your account being inactive. If an account levy gives debt collectors access to the money in your secured account, or if court-ordered garnishments are imposed, then the money is taken from your secured credit card, and OpenSky take $150 per incident too.
Inactive Account Fee: $10 per month
Dormant Account Fee: $10 per month
Garnishments/levies: $150 per incident
The only good news in this case is that inactive and dormant account fees are assessed when your secured credit card account is closed. This means that your inactivity and dormancy fees are removed from your deposit rather than being charged on top of whatever else you owe the company.
It Takes Ten Weeks To Get Your Refund Back
Many complaints online are from people who are expecting their refund back within four weeks. Maybe they are being told it is four weeks by OpenSky’s customer service department, or maybe they are reading it online. But, it says on OpenSky’s terms and conditions that you will receive your deposit refund back in 10 weeks.
Some people withdraw all of their money from the credit card and then try to close their account, but OpenSky don’t allow them to close their account until the money is paid back into the account. It sounds nutty that you have to pay back your money so they may refund you your money, but you have to do things their way.
Getting Your Refund – The Most Common Complaint
Check out a few user reviews and you will see complaints about people not getting their original deposit back. I am not trying to defend Opensky Secured Visa Credit Card in this direction, but not receiving the refund back is one of the most common complaints about secured credit cards.
There are monstrous secured credit card companies that take your deposit and never return it because their policy is to cease your deposit. Then, there are secured credit cards that promise to refund your deposit, but they take a long time of make it very difficult.
Opensky Secured Visa Credit Card is one of the many secured credit card companies that promises to return your deposit, but they will use any reason they can to hold onto it. The longer they hold onto your deposit, then the more likely it is that they may charge you one of their dormancy fees, which means they may take some of your money or hold onto it longer.
The most common reason that Opensky Secured Visa Credit Card gives as to why they have not refunded a deposit is because there is still pending actions on the credit card in question. For example, if a charge has been authorized but has not gone through, then even a closed account is still considered active by Opensky Secured Visa Credit Card. Another example is if people still owe a little bit of interest, or even if personal information has not been updated.
Getting Your Refund – The Most Common Solution
The only way to get around the problem of Opensky Secured Visa Credit Card not sending back your deposit is to talk to their customer service department again and again and again. Gather evidence of every time you speak with them, which includes making a note of it on your phone bill and recording the conversations. This will help you later if you need an ombudsman to help you, or if you decide to take them to small claims court. Some people also contact the BBB and Consumer Financial Protection Bureau.
Pay Your Bill One Week Early And Beware Of Auto-Pay
Cards like this one always seem to have a hard time processing your payments. I don’t know if it is because cards like this are intentionally making the payment process longer and more difficult, or if it is because cards like this attract the sort of people who think they are paying their bill but are in-fact ordering another six months worth of cotton balls.
Relying on the payments systems set up by secured credit card companies is another mistake. Many of them offer auto-pay, and many of them receive terrible online reviews because auto-pay didn’t work.
Don’t take the risk and do your best to avoid missing payments by paying your bill one week before it is due, and by doing it manually and not relying on auto-pay.
They Are Going To Charge You The Deposit Before You Are Approved
I can’t honestly say that this is the worst secured credit card company because it is about average when compared with most other secured credit cards. But, that is only because most secured credit cards are awful. One annoying thing about this company is that one of the qualifying conditions is that you actually have enough money for the deposit, and the way they test for that is to draw the money from your account.
To clarify, Opensky Secured Visa Credit Card doesn’t use your credit score in order to approve your application, but it does use your personal details, and they judge your ability to repay what you lend. They also approve your application by having you prove that you have enough money in your account to pay the initial deposit, and they have you prove it by drawing the money from your account.
It is possible to have them take your deposit, and then refuse to give you their secured credit card. They will then need to refund your money, but they are allowed by their own terms and conditions to take ten weeks to refund your money.
Summing Up Opensky Secured Visa Credit Card
The annual percentage rate for making purchases is 18.64%, and the annual fee is $35. The transaction fees for cash advance 5% with a $6 minimum charge. The foreign transaction fee is 3% of the US dollar value. You will be charged for late payments in amounts up to $27, and returned payments you will be charged up to $25.
Your security deposit is the foundation for your credit limit. Make sure the information you put when you apply is correct because the bank/debit/visa card details you give them are will be used if you choose Auto-Pay.
OpenSky accepts either Visa or MasterCard. Refunds or payments you are owed back will be sent to you by check. Some people claim they were repaid their deposit back into the account they used to make the deposit, but that is not what is stated in OpenSky’s terms and conditions.
People promoting Opensky Secured Visa Credit Card will tell you that if you are not approved for a secured credit card, then you will receive all of your security deposit back via check within five days. However, OpenSky’s terms and conditions state that they can take as long as ten weeks to refund your deposit.
If you want to apply for a card but are worried because you don’t have a checking account, then there are occasions where you may be able to apply without a checking account. When you are applying, you may be able to select, “I’ll need to pay my security deposit at a later date.” If this option is open to you when you apply and you select it, you will receive an email with instructions on to how and where to send the deposit. They accept Western Union payments, and money orders, and they may accept a check from another person’s checking account, but I wouldn’t suggest you bring in another person, you should stick to Western Union or money orders.
Conclusion – The Pros And The Cons
I really didn’t want to do pros and cons for this company, but I am really having trouble here because they are a shitty secured credit card company, but they are an ice-cream on a sunny day when compared with most other secured credit card companies. Most secured credit card companies are as good, professional, and high quality as a homeless woman selling lemonade from her kid’s lemonade stand. The secured credit card industry is a cesspit of fleas, bacteria and sleazeballs, and compared to most of them, the Opensky Secured Visa Credit Card is not so bad. The Discover And Capital One secured cards are about a million times better, but Opensky Secured Visa Credit Card comes off okay when compared to most secured credit cards.
Side Note – Debunking Other People’s Pros And Cons
Before I move on to the pros and cons of Opensky Secured Visa Credit Card, let me point out some of the downsides that other writers have written about that are actually invalid.
I know that some articles have reviewed Opensky Secured Visa Credit Card with pros and cons and their cons have included, “No offers, no perks, no rewards, no interest on your balance” and things of that nature, but you have to remember that you are dealing with a secured credit card. It is like booking into a $12 per night motel and then complaining because your room doesn’t have a Jacuzzi.
Also, some reviewers have complained that this company doesn’t allow you to increase your limit based on your usage. Regular credit cards often allow you to increase your credit limit if you manage your account correctly for a few months. Opensky Secured Visa Credit Card doesn’t allow this because it is not a regular credit card. If you want to increase your credit limit, then you have to send them more money. After 7 months of good behavior, you are allowed to increase your credit limit to $3000 if you send them that amount as a deposit. Your credit limit is based on how much you secure with them via a deposit.
Opensky Secured Visa Credit Card – Pros
- Doesn’t require a bank account
- They will actually return your deposit even though some secured cards don’t
- Reports to the three major credit bureaus
- No credit checks needed
- Rebuilds your credit
- You get to choose your card design from the premium gallery
- Receive text and alerts from OpenSky for when payments are due
- The APR could be worse
Opensky Secured Visa Credit Card – Cons
- They take your deposit before you are even approved
- Requires $200 minimum deposit (is that so bad? Maybe)
- Has Annual fee of $35
- Only other way to pay if not online is by post
- We waited 3 weeks for the card to arrive
- Customer service is unresponsive and nobody takes responsibility
- They sneak that paper statement fee in on some people
- Their dormancy and inactivity fees are vicious
- Their garnishment/levy fee is outright offensive
- They said I was talking to a supervisor, but it sounded like the same woman putting on a voice
- It takes ten weeks to get your deposit back*
- OpenSky won’t accept you if you have good credit**
* I know it states in the contract that it takes ten weeks, but it is still too long for people to wait
** because people with good credit can afford to sue their asses?
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End Note – Every time we review a secured credit card we find Facebook petitions about it. Get a life. If you screwed up your credit, then that is your fault. If you signed up for a shitty secured card rather than staying out of debt, then that is your fault. These cards are not your only option for rebuilding credit, they are just the fastest. If you put your hand in an alligator’s mouth, you have no right to go onto Facebook and write petitions because it chewed your hand off.