Though the OpenSky Visa can help you improve your credit score, it's difficult to ignore the card's drawbacks, such as lack of perks and hefty fees.
Signup bonus: No welcome offer
The OpenSky Secured Card doesn’t offer a welcome bonus. Like many secured cards, it focuses more on helping you build your credit rather than delivering additional benefits. Once you get your credit built up and can qualify for a new card, you can always switch to a credit card that offers a traditional signup bonus.
However, some secured cards offer welcome bonuses. For example, the Discover it® Secured Credit Card offers cash back rewards on purchases and has a one-of-a-kind welcome bonus that will match your spending dollar-for-dollar at the end of your first year with the card. You can essentially get twice the amount of rewards for regular spending in the first year.
Cardholder perks: No notable benefits
The OpenSky Secured Card has several benefits for building credit and offers traditional Visa perks. Like all base-level cards branded with the Visa network, you’ll receive a list of staple Visa benefits, including $0 fraud liability, 24/7 pay-per-use roadside dispatch and 24-hour assistance if your card is lost or stolen and you need a replacement. In case you’re worried about potential identity theft, the ID Navigator tools you’ll receive can monitor the dark web for your personal information and alert you about any suspicious activity.
But aside from the Visa and credit-building benefits, the card offers no outstanding features that set it apart. Although these features are beneficial to the average credit builder, they focus mainly on managing your account. Other secured cards, even unsecured cards for limited credit, may offer richer perks than OpenSky’s standard features.
Rates and fees: A pesky and unwanted annual fee
The $35 annual fee for the OpenSky Secured Card is higher than most since many other secured cards have no annual fee. For example, the Discover it® Secured Credit Card has no annual fee and doesn’t charge a ton of extra costs. Meanwhile, the OpenSky Secured Visa has an annual fee and a 3 percent foreign transaction fee.
However, the purchase APR is much lower than most other secured cards at 25.64 percent (variable), which is only a bit above the current average interest rate. Even better, it’s not a range of APRs, so what you see when you apply for the card is the APR you’ll get.
Other expenses to be aware of include a $6 or 5 percent cash advance fee (whichever is greater), a late payment fee of up to $40 and a $25 returned payment fee. These are typical costs for most cards, and you may not worry about some of them if you don’t use the card abroad or make late payments.