This credit card has an annual cost of $35 and reports your payment history to all three major credit agencies. You may establish a credit limit of up to $3,000 by providing a security deposit of the same value, provided that you are approved for the limit.
Pros
- Before creating an account with certain other protected cards, you might be required to provide proof that you already have a bank account. Although not having a bank account might make it more difficult to pay your credit card payment, this card does not need criteria to be met to apply for or use it.
- It might be challenging to obtain authorised for a variety of credit cards if you do not have any credit history or if your credit history is damaged. When you apply for the Credit Card, however, no credit check will be performed on you.
- Your credit card company will submit information on your credit status to Equifax, Experian, and Transunion every month. This opens the door for you to establish or reestablish your credit history, provided that you engage in responsible credit behaviours such as regularly making on-time payments to your bills. At the same time, bad information about your credit history will be published, which is why it is of the utmost importance to pay your bills on time and avoid using too much of your available credit.
Cons
- After demonstrating that you are a responsible credit user, you may be eligible for an upgrade to an unsecured credit card issued by the same firm that issued your secured credit card. This particular feature is not available with Visa Credit Card.
- The annual fee for this card is $35, which is reasonable for a secured credit card, given that it is a secured credit card. Despite this, certain secured credit cards available do not charge an annual fee.
- You must demonstrate that you are qualified for the OpenSky by satisfying the eligibility standards listed above. They are as follows:
- I have reached the age of 18 or older.
- Like most secured credit cards, this card does not come with any rewards for using your credit card. However, a few cards are an exception to this rule, such as the Cash Back Secured Credit Card from Bank of America and the Discover it Secured Credit Card. Both cards enable you to receive cash back on purchases made with them.
This Card is Best For
People wanting to begin developing or repairing their credit history may find the Secured Visa Credit Card an excellent alternative. In particular, it presents a chance for those unable to get credit because of unfavourable information in their credit report. When you apply for this card, a credit check won't be performed on you as part of the procedure. This option is available with certain credit card companies. You may potentially improve your credit score by doing this, in addition to paying all of your payments on time.
The Experience of Cardholders
You may manage your OpenSky account with the help of a dedicated mobile app. On the other hand, OpenSky's website does not make it particularly simple to locate various contact details, which may indicate the quality of the company's customer care. That information includes postal addresses as a point of contact. You should be able to get in touch with customer support if you call the number printed on the back of your card.
Security Features
These cards' security measures are par for the course regarding business. The annual fee for this card is $35, no credit card rewards are offered, and there is no option to change to an unsecured card later. Despite this, keeping the card until your credit profile improves to the point where you can qualify for a more advantageous credit card might still be beneficial. Before applying for a secured credit card, applicants who already meet the requirements for a secured credit card with no annual charge or a secured credit card that gives incentives should explore their other possibilities.
Fees to Watch Out For
Before applying for this card, you should remember that there is no option to upgrade to an unsecured, fee-free version of the card. If your account is closed and the deposit cannot be returned to your last known address, you may be charged an inactive or dormant account fee of $10 per month if your account is considered inactive or dormant. Your credit card company will submit information on your credit status to Equifax, Experian, and Transunion every month. After your deposit has been returned to the bank, these costs will begin accruing after 12 months of inactivity, followed by 36 months of inactivity.
