OpenSky Secured Credit Cards Review: Finally, Credit Card Options Without a Credit Check

If bad credit or no credit has stopped you from getting credit cards in the past, OpenSky® might make you do a little happy dance. With an OpenSky® Secured Credit Card -- both the OpenSky® Secured Visa® Credit Card and the OpenSky® Plus Secured Visa® Credit Card -- you can apply without a hard pull on your credit. If you're looking to build or repair your credit, let's take a closer look at the OpenSky® Secured Credit Cards and see if one is a good fit for you.

These credit cards are a good fit for: Credit builders who want an easy credit card to start improving their credit.

Top perks

Since OpenSky® Secured Credit Cards are designed for those with bad or no credit, they lack the strong rewards of other secured credit cards we've reviewed. Even so, they do have some noteworthy perks.

No hard inquiry required

That's right. As rare as it is to find a credit card that doesn't do a hard pull on your credit, OpenSky® doesn't require one for its cards. Instead of a credit check, it will use basic information that you provide -- like your monthly housing payment and total annual income -- to determine eligibility. Of course, approval isn't guaranteed. But odds are in your favor, as OpenSky® itself claims it accepts roughly 88% of its applicants.

Two secured credit card options

OpenSky® has two secured credit cards: the OpenSky® Secured Visa® Credit Card and the OpenSky® Plus Secured Visa® Credit Card. Here's how they differ.

In sum, the OpenSky® Plus Secured Visa® Credit Card doesn't charge an annual fee, but has a higher minimum security deposit, whereas the OpenSky® Secured Visa® Credit Card has a lower minimum deposit but a $35 annual fee.

Graduate to an unsecured credit card

OpenSky® will periodically evaluate your account to see if you qualify for its unsecured credit card, the OpenSky® Gold Visa® Unsecured Credit Card. You'll get your security deposit back, and you might even qualify for a credit limit increase, too. OpenSky® claims you could graduate to its unsecured option with as little as six months of on-time payments.

No bank account required

Unlike most credit cards, you don't need a checking account to pay bills on your OpenSky® Secured Visa® Credit Card. Instead, you could pay by mailing a check or money order or by a Western Union money wire.

Reports to all three credit bureaus

Best of all, OpenSky® reports your credit activities to the major credit bureaus: Equifax, Experian, and TransUnion. This is instrumental in helping you build or repair your credit, as these are the three bureaus that will rate your credit activities with a score.

What could be improved

OpenSky® Secured Credit Cards may not require a credit check, but they have weaknesses you should be aware of.

No rewards

OpenSky® Secured Credit Cards don't earn points or cash back. While it's not unusual for secured credit cards to lack a rewards program, some of the cards we've reviewed do offer lucrative rewards. If that's important to you -- and you have decent credit -- you might want to compare credit card options before you make a decision.

Annual fee

The OpenSky® Secured Visa® Credit Card has a $35 annual fee that you'll pay in addition to the upfront security deposit. While this is lower than the annual fee on some secured credit cards, it's still something to consider, especially if you have decent credit and could qualify for a no fee card.

Foreign transaction fee

If you use your OpenSky® Secured Credit Cards outside the U.S., you'll get hit with a 3% foreign transaction fee. Other credit cards -- including many travel cards -- will let you make transactions in foreign currencies without paying any unnecessary fees.

Your credit score isn't a factor when applying for one of the OpenSky® Secured Credit Cards. There's no credit check during the application process. It won't matter if you have poor credit due to issues on your credit file, or if you're credit invisible with no information on your credit file. Instead of a credit score, OpenSky® will look at your monthly housing payment and annual income to determine approval.

The application and approval process with OpenSky® can be slower than with other card issuers. Applications are usually processed within 24 to 48 hours. It's not a long time, but it's longer than usual, considering there are so many instant approval credit cards out there. In total, approval for the card, paying your security deposit, and receiving your card in the mail can take up to 12 to 14 business days.

• You're building or repairing your credit.
• You're unbanked but would still like a credit card.
• You've been denied other credit cards because of your credit.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.