Whether you have a bad credit history or are an inexperienced borrower, a secured credit card can be an excellent way to start developing credit.
One noteworthy feature of the OpenSky Secured Visa Credit Card is that there is no credit check required for application. This implies that applicants with brief credit histories or low credit scores can still be approved. Additionally, when you apply, there won’t be a hard credit query made to your credit report, which would momentarily lower your credit score.
The OpenSky Secured Visa is a secured credit card, meaning that in order to create a line of credit that will match your deposit amount, you must provide a refundable cash deposit of $200 to $3,000.
Some borrowers might be eligible for better options because the card has a $35 annual fee and few additional benefits. However, this card can be a suitable choice for people who want a head start on their road to establish or repair credit.
Among the benefits of the OpenSky Secured Visa include no credit check requirements for applicants, reporting to all three main credit agencies, educational resource access, and more. A summary of those features is provided below:
This card’s lack of a credit check requirement is one of its best qualities.
Opening a credit card and demonstrating to lenders that you can successfully and properly handle a loan is one of the finest strategies to establish or restore credit. However, obtaining a credit card typically necessitates a rigorous credit investigation, which may temporarily diminish your already low credit score.
With OpenSky Secured, you may avoid the credit inquiry process and begin your credit improvement without having to worry about a negative impact from a hard inquiry.
Your financial activities must be reported to the three major credit agencies in order to establish a credit history.
With that, OpenSky Secured Visa can assist. If you use the card responsibly, that is, by keeping your balance low and making at least the minimum payment on time each month, the issuer will report to all three major credit agencies, and your credit reports will reflect that positive credit history.
However, bear in mind that any errors—like a forgotten payment or an excessive balance—will also be recorded.
In order to help consumers better understand credit and how to raise their credit score, OpenSky provides a range of instructional resources. This includes an extensive library of material on personal finance and credit building, along with actual accounts of how cardholders have improved their credit scores.
A variable credit limit based on the amount of your security deposit is included with the card. You can have a little or reasonably substantial credit limit as long as you have the funds to support it. Amounts range from $200 to as much as $3,000.
The FDIC has insurance on your refundable deposit. This indicates that there is protection against bank failure for the money you used to obtain your credit line.
The OpenSky Secured, being a Visa card, offers a range of ancillary benefits in addition to those provided by OpenSky. Among these are a few of these:
Applying for the card only takes a few minutes, according to OpenSky. The application process consists of just a few steps, and since a credit check is not required, borrowers may be accepted immediately.
To receive the greatest benefit from the OpenSky Secured Visa Credit Card, there are a few considerations that must be made.
Remain committed to your credit-building objective. Yes, a credit card provides ease and the ability to make purchases even if you don’t have the cash on hand right away. However, concentrating on improving your credit will serve as a reminder to use the card only for modest purchases and settle the balance at the end of each billing cycle. Since you want to establish credit, set up a spending plan you can follow and refrain from going overboard with the card.
Recognize how credit is used. Your credit score is greatly impacted by credit utilization, which is the ratio of credit you have to credit that you are utilizing. The general consensus is to use no more than 30% of your credit. It implies that if you put down the $200 minimum security deposit to open a $200 line of credit, you should never charge more than $60 on your OpenSky Secured Card (preferably, you should never go over that amount).
Always make on-time payments (and as much as feasible). Setting up automatic payments for the entire statement balance is your best option. This keeps your credit score high and helps you avoid accruing interest by ensuring that you always make your payments on time. Setting up auto pay to pay at least the minimum amount required is the next best thing to doing. In addition to paying interest on any outstanding balances, you will still be demonstrating prudent card management.
For those who might not be eligible for other cards, the OpenSky Secured Visa Credit Card is a valuable option for credit card holders with poor credit. Applying won’t harm your credit because there isn’t one, and even those with bad credit are probably going to get approved for this card.
If you’re seeking for the best secured card to help you develop credit, you should also look at other options as the OpenSky Secured Visa card doesn’t offer many additional perks.
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