Is the OpenSky Secured Visa Credit Card worth it?

The OpenSky® Secured Visa® Credit Card is a solid option for building or rebuilding your credit. The card requires a flexible, refundable deposit of $200 to $3,000 and reports to all three major credit bureaus, allowing you to gradually improve your credit score through a history of on-time payments.

Because the OpenSky Secured Visa doesn’t require a credit check, even borrowers with poor credit or no credit history at all can qualify. The card comes with a $35 annual fee and doesn’t offer much in terms of additional bells and whistles, which means it’s not the best option for consumers with fair or better credit.

But if you’re unable to qualify for another secured credit card, or if you’re interested in avoiding a credit check, setting your own credit limit or receiving a comparatively lower variable APR, the OpenSky Secured Visa may be a good choice.

When is the OpenSky Secured Visa Credit Card worth it?

The OpenSky Secured Visa Credit Card might be right for you in the following situations:

You have poor credit

This card doesn’t require a credit check or credit inquiry, which makes it an attractive option for borrowers with a poor credit score who may have been rejected from other cards. Instead, the card requires a refundable cash deposit.

You have a short or no credit history

Even borrowers with no previous credit history can qualify for this card. This means it could be a good option for young people who are new to credit and those who are underbanked or unbanked but want to start building credit.

You want a higher credit limit — or to set your own

Unlike some secured credit cards, the OpenSky Secured Visa offers a relatively high potential credit limit, as long as you have enough cash for the deposit. The OpenSky Secured Visa allows borrowers to deposit up to $3,000, subject to approval.

You’re looking for a lower variable APR

Compared to the other secured credit cards on the market, the OpenSky Secured Visa has a low variable annual percentage rate (APR) of 25.14% (variable) — which is the interest rate you’re charged if you carry a balance. Similar secured cards charge higher variable APRs, such as the Capital One Platinum Secured Credit Card at 29.99 percent.

When is the OpenSky Secured Visa Credit Card not worth it?

The OpenSky Secured Visa will not be the best fit for borrowers who can qualify for an unsecured credit card or one that earns a variety of rewards and benefits. Here are some times when you should skip the card:

You don’t want to provide a cash deposit

It’s easier to qualify for secured credit cards over traditional credit cards, but secured cards come with a price. To open this card, you must provide a refundable cash deposit of at least $200. This may be less than ideal for borrowers who are tight on cash or who simply don’t want to tie up their savings in a secured credit card at the moment.

If you’re wanting to avoid a secured card, look for credit cards designed for borrowers with less-than-stellar credit or no credit history, like the Petal® 1 “No Annual Fee” Visa® Credit Card*. The Petal 1 doesn’t charge an annual fee and features access to a card-linked offer program called Petal Perks — but its higher variable APR ranges from 25.24 percent to 34.74 percent.

You want to avoid an annual fee

The OpenSky Secured Visa credit card comes with an annual fee of $35. While not high, the fee can add up for borrowers on a budget. No-annual-fee cards like the Capital One Quicksilver Secured Cash Rewards Credit Card and Discover it® Secured Credit Card may be better options for borrowers who qualify. Both cards are designed for people with no credit history and earn cash back rewards.

You want to earn rewards

This card doesn’t earn a ton of rewards, which is fairly common for credit-building secured credit cards. Still, borrowers should check to see if they qualify for a card with rewards-earning potential.

The Capital One Quicksilver Secured Cash Rewards Credit Card earns 1.5 percent cash back on all purchases, plus a heightened 5 percent rate on hotels and rental cars booked through Capital One Travel. Further, the Discover it® Secured Credit Card earns 2 percent cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter, then 1 percent) and 1 percent back on all non-category purchases.

The OpenSky Secured does offer a lower 25.64 percent variable APR compared to these two cards — which offer a variable 28.24 percent for the Discover it® Secured Credit Card and variable 29.99 percent for the Quicksilver Secured. So, that’s something to keep in mind should you expect to carry a balance.

Should you get the OpenSky Secured Visa Credit Card?

If you have poor or no credit history and are interested in a comparatively low variable APR, avoiding a credit check or gaining the ability to set your own credit limit, the OpenSky Secured Visa Credit Card can be worth it.

That said, if you’re more interested in earning ongoing rewards on your purchases or are dead set on avoiding an annual fee, other secured cards can better fit your needs. It comes down to what card perks are most important to you, given many secured cards have similar approval requirements.

The bottom line

The OpenSky Secured Visa is designed for borrowers who need help building up their credit score, and it admirably serves that purpose. The card reports to all three credit bureaus, so borrowers who consistently pay off their balance each month can improve their score.

If you’re having trouble qualifying for other cards and are looking for a way to start improving your credit, the OpenSky Secured Visa could be a good choice.

Still, if it’s rewards or other perks you’re after, you just might find a better fit for your lifestyle and budget in our list of the best secured credit cards on the market.

*Information about the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.