A secured credit card is an excellent tool to establish or restore credit. You can improve your credit rating gradually by supplying a security deposit, making certain charges, and paying your bill on time each month.

Many situations call for the use of a secured credit card. You might have recently filed for bankruptcy, have unpaid tax debt, or have just made some careless decisions in the past that have resulted in a lower credit score. The most obvious one is that you have never used credit before and, hence, have no credit score.

Elaborating On The Benefits

Need Not Have A Bank Account:

It's possible that opening an account with some other secured credit card provider will necessitate you already have a bank account. This card does not require you to have a bank account, but it may be difficult to pay your credit card charge without one.

There Will Be No Credit Check Made:

It's not easy to get authorized for a credit card when you have bad credit or no credit. You can apply for the OpenSky Visa Credit Card without worrying about a credit check. However, there are other scenarios where an applicant could be rejected for an OpenSky Visa card.

Reports To Three Credit Bureaus:

Each month, Equifax, Experian, and TransUnion will get a report of your credit card activity. Provided you maintain responsible financial behaviors, such as paying your bill promptly, this opens the door to establishing or repairing your credit. At the same time, late payments and excessive credit use will be shown as bad items on your credit report.

Your Credit Limit, Pending Approval:

Upon the company's approval, your credit limit will be set at the amount of your refundable deposit. A $200 minimum deposit is required to open a line of credit. The maximum allowable sum is $3,000.

Arguments Against

Ineligible For Future Unsecured Card Upgrade:

After demonstrating that you are a responsible borrower, many issuers of secured credit cards may let you upgrade to an unsecured card from the same institution. This feature is not available with the OpenSky Secured Visa Credit Card. You will be required to use your secured credit card account exclusively if you keep it active.

Fees Paid Each Year:

For a secured credit card, the $35 annual premium is reasonable. However, secured credit cards out there don't charge an annual fee.

Required Qualifications:

The OpenSky Secured Visa Credit Card is available to those with specific qualifications. The following are among them possessing a minimum age of 18, Possessing an active Social Security number or Individual Taxpayer Identification Number holding either U.S. citizenship or permanent resident status

No Credit Card Points:

Like other secured credit cards, this one doesn't come with any perks for using it. However, there are a few notable exception, such the Discover it Secured Credit Card. Compared to Capital One's Platinum Secured Credit Card, OpenSky's Secured Visa Credit Card has several advantages.

Because of the need for a good credit history to be verified before applying for the Capital One Platinum Secured Credit Card, those with limited or damaged credit histories may find it a bit more difficult to obtain. It's also the more budget-friendly choice. Unlike OpenSky, which charges $35 yearly, Platinum Secured has no such fee.

Credit Cards: OpenSky Secured Visa Vs. Discover It® Secured

If you want to establish or improve your credit while accruing rewards on your purchases, the Discover it® Secured Credit Card is a solid option. In contrast to OpenSky, it has rewards: 2% cash back at supermarkets and eateries. The OpenSky card is preferable if you expect to carry a balance from month to month.

Compatible Card For OpenSky Secured Visa Credit Card

Pairing the OpenSky Secured Visa with a rewards credit card that also aids in credit repair is ideal. For instance, with the Petal 2® "Cash Back, No Fees" Visa® Credit Card, you'll get 1% cash back on everything you buy. Increasing the cashback rate to 1.5% after 12 months of on-time payments encourages responsible credit use.

A larger maximum credit limit is only one of the many benefits cardholders of the Petal 2, in conjunction with the OpenSky, will enjoy. OpenSky and Petal 2 cardholders have access to at least $500 inaccessible credit, which can be used to keep utilization low.