Who Is This Credit Card For
I think the OpenSky credit card is good for people that are:
- looking to build credit
- Have no credit history/bad credit history
- Are looking to get a bigger loan in the future
- Dont need a high credit limit
- Are just interested in having a safe, reliable way to build credit.
This credit card is NOT for:
- People looking for cash rewards/big rewards from a credit card.
- People looking for a high credit limit/unsecured card.
- Not for people looking to make big purchases/pay stuff over 12 months.
- Not for people that are looking for a great travel card.
Simply put, this card is what its all about. Building credit.
Youre not going to get expensive trips to the Bahamas from this card. Youre not going to get cash back either. And even then, the credit limit is fairly low and its a secured card.
This isnt for the person looking to blow thousands of dollars at a party or something, this is for the people that are trying to get a good credit score and build it.
As I said, this credit card is good for a reliable, safe way to build credit.
Theres nothing special or fancy about this card, and this card isnt going to be much use if youre trying to make big extended purchases.
This is a barebones, build your credit up, move onto the next card kinda thing.
But regardless, that doesnt make it a bad card. Its a very solid credit card.
Identify Inaccurate Items On Your Reports
One of the best ways to raise your credit score is to identify and dispute any inaccuracies on your credit reports. If there are any errors, outdated information, or incorrect account balances, get in touch with the credit bureau and have them corrected. This can take some time and effort, but its worth it in the long run.
According to CNBC 1/3 of Americans have errors on their credit report, so youre certainly not alone. And the most common error? Outdated information.
Thats why checking your credit report often is key to a good credit score.
You can get a free copy of your report from each of the major credit bureaus Experian, Equifax, and TransUnion once per year at AnnualCreditReport.com.
I recently requested my credit report and it took less than 10 minutes to receive it. You will need to provide some basic information such as your name, address, Social Security number, and date of birth.
Its a simple 3 step process and well worth your time. Once you receive your credit report, comb through it carefully and look for any inaccuracies. If you find anything that looks incorrect, raise a dispute with the credit bureau.
Hire A Credit Repair Service
Disputing errors can be time consuming, especially if your history has several mistakes or if you were a victim of identity theft. Reputable credit repair companies such as , Lexington Law or Sky Blue may be viable solutions if your file is riddled with inaccuracies.
Credit repair services can help you dispute inaccurate negative information and handle creditor negotiations. However, if you decide to hire a credit repair agency, remember there are consumer protection laws that regulate how they operate and what they can do. The establishes the following regarding credit repair services:
- They cannot provide false or misleading information concerning a persons credit status and identification
- They must provide a detailed description of the services they provide
- They cannot charge for their services until they have been completed
- There must be a written contract detailing the services theyll provide, the time frame in which these services will be provided and the total cost for them
- They cannot promise to remove truthful information from your record before the term set by law
- You have three days in which to review the contract and cancel without penalty
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The Impact Of Identity Theft On Your Credit Report
Identity theft when someone steals your personal information and uses it to open new financial accounts can wreak havoc on your credit. These new accounts show up on your credit record and hurt your score, especially if theyre delinquent or if the identity thief applied for several in a short amount of time.
Cleaning up your credit after identity theft can take anywhere from several months to years. The longer it takes you to realize someone stole your identity, the more difficult it will be to undo the damage. This is why keeping a close eye on your report and learning how to protect yourself from identity theft will help you to keep your information safe.
What Is A Secured Credit Card
Secured credit cards for bad credit or no credit are for people who need a first or second chance. If youve struggled to qualify for a credit card, then a secured credit card might be the one kind of credit card that you can easily get.
You should think about applying for a secured credit card if you dont have a credit card and have been rejected by issuers in the past.
One of the big selling points of a secured credit card is that using one can help you build credit which means that eventually, you can apply for an unsecured credit card.
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This Card Is Best For
- Motivated to create positive credit historyCredit Builder
The OpenSky Secured Visa Credit Card may be a good option for people looking to start building or rebuilding their credit. In particular, it provides an opportunity for those who cant access credit due to negative information on their credit report. This card doesnt check your credit as part of the application process.
The ability to select your credit limit based on the amount of your refundable deposit, subject to approval, can help you keep your credit utilization under control. That, along with making on-time payments, may help you establish a good credit score.
How To Apply For The Opensky Secured Visa Credit Card
You can sign up for the OpenSky® Secured Visa® Credit Card right from their website. All you need is some personal information so OpenSky can verify your identity:
Then, youll provide some information about your finances:
- Total annual income.
- Social security number.
This is very private information, but they need this data from you so they can make sure you are who you say you are verifying identity for financial accounts is a law under the USA Patriot Act.
Next, OpenSky will share some disclosures with you. These are the terms of your financial agreement and youll see some details about the OpenSky® Secured Visa® Credit Card, such as the annual percentage rate , which is 17.39% for both purchases and cash advances.
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Does Opensky Run Your Credit
No, the OpenSky card does not do a hard pull on your credit report. In fact, OpenSky does not perform any credit checks. OpenSky is a secured credit card designed for those looking to rebuild their credit, so it is available to applicants with bad or no credit. OpenSky requires a minimum security deposit of $200.
What My Improved Credit Score Allowed Me To Do
In August of 2011, I had to purchase a car so I could switch jobs.
When I filled out the credit application to see if I qualified for lower financing rates, my credit score came back as 731.
In other words, I raised my credit score from 621 to 731 in just five months!
This is a very big deal because, at 621, I would have been denied a loan for the car, or would have had an interest rate that exceeded 9% on the auto loan.
Since I chose to get a secured credit card, I was able to take the car loan on my own and qualify for the low rate of 3.99% financing.
The difference in the loan between the two interest rates would be $750 over the life of the loan, far surpassing the cards annual fee, and the opportunity cost of my secured credit card holding my $1,100 for five months.
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Prepaid Cards That Do Not Build Credit
Keep in mind that some prepaid cards do not build credit. These are not secured credit cards or charge cards, so youll use them more like a debit card and load your own funds to make purchases. Using a prepaid debit card can still be beneficial since your funds can be FDIC-insured, and some prepaid cards still offer rewards.
Below are five prepaid cards that do not build credit but can help you make purchases that require a card.
|Variable Monthly Fee||Not applicable|
NetSpend has been around for over 20 years and the NetSpend® Visa® Prepaid Card is one of the most popular options for prepaid debit cards. There is no credit check required to apply for a prepaid card and most cardholders can expect their paycheck at least two days early once they set up direct deposit.
You can now also receive cash back for qualifying purchases and there is no overdraft fee on purchases. Purchase Cushion is a feature that allows NetSpend to cover up to $10 if you happen to spend slightly more than whats available on your card. The money will later be deducted from your balance the next time you load your card.
NetSpend offers a mobile banking app that you can use to check your account balance and see your transaction history. You can also use this app for mobile check deposits, and you are protected against unauthorized purchases with zero liability protection.
|Variable Monthly Fees||Not applicable|
Additional Disclosure: Walmart MoneyCard® is a debit card offer.
How A Bad Credit Score Isbad
As discussed previously, a bad credit score is anything listed below 670. If you want to get more particular, a score varying in between 580-669 is thought about fair, while anything between 300 and 579 is thought about bad. This is going off the FICO scoring thats most typically used.
Not sure what your credit score is? . Its free!
Having a bad score can stop you from doing a lot of things. This includes getting approved for better charge card, mortgages, homes, individual loans, company loans, and more.
Plus, any loans or credit cards you do get approved for will be much more costly . This is due to the fact that loan providers charge much higher interest rates to those they deem high danger in order to balance out the additional danger they feel theyre taking by loaning you cash.
How do they get more expensive? By charging greater interest rates. For example, if you take out a $10,000, 48 month loan on a automobile with a 3.4% rates of interest, youll pay about $704 in interest throughout the loan. If you got that exact same loan with a 6.5% rate due to bad credit, you d pay about $1,376 in interest. Thats nearly double!
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When Will Open Sky Show Up On My Credit Reports
I opened an Open Sky solely for the purpose of participating in the AZEO method. However it still has not shown up on my credit reports and its been almost two months. I need the point increase that a new card on your credit report provides. Has anyone else had a credit card take that long to show up? I was recently approved for a Capitol One Quicksilver and it posted to my credit report within a few days of approval.
Can You Build Credit With Netspend
NetSpend is a global payments company that is known for its prepaid debit cards. While NetSpend does offer some of the most popular Mastercard and Visa prepaid cards for unbanked consumers, they dont currently offer a credit card product. This means that you, unfortunately, arent able to build credit with NetSpend.
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Obtaining New Credit To Re
A bankruptcy discharge eliminates all prior debts and enables consumers to have a fresh financial start in life. Consumer credit scores can be as low as in the 400s after bankruptcy discharge. We will show you how to get your credit scores over 700 FICO one year after the bankruptcy discharged date. Gustan Cho Associates offers home mortgages with no waiting period after bankruptcy and/or foreclosure. Government and conventional loans require a mandatory waiting period after bankruptcy and/or foreclosure. Just meeting the waiting period after bankruptcy and/or foreclosure does not guarantee you a home mortgage approval. Lenders want to see re-established and timely payments after bankruptcy and/or foreclosure.
One late payment after bankruptcy is the kiss of death. Lenders and other creditors do not want to see any late payments after bankruptcy. Consumers with late payments after bankruptcy are called second offenders. Lenders and creditors will classify late payers after bankruptcy as habitual financially irresponsible consumers and want nothing to do with them At Gustan Cho Associates, one or two late payments are not always deal killers. Borrowers with late payments will be scrutinized and mortgage underwriters want to know why they were late on their monthly debt obligations. Obtaining new credit after bankruptcy is the best way of re-establishing credit. How can creditors give a recently bankrupt consumer new credit?
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Best Secured Credit Card With Low Apr And No Annual Fee Citi Secured Mastercard
Nobody wants a high APR. Ideally, youll pay off your credit card, secured or not, every month so you dont have to worry too much about the APR. If youre going to carry a balance from month to month, a high APR can end up costing you a lot of money in interest.
There is a secured credit card on this list with a much smaller APR that is worth considering the OpenSky® Secured Visa® Credit Card
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Opensky Secured Visa Credit Card Snapshot
When youre trying to establish credit for the first time or rebuild your score after a bankruptcy, foreclosure, or other rough financial spot, a secured credit card, when used responsibly by you can be a lifesaver. The OpenSky® Secured Visa® Credit Card is one you may want to consider, whether youre starting out or youre starting over. You can apply for the card without a credit check and it takes just a few minutes to apply for an account. If you need a secured card to get your credit on track, take a close look at our review of the OpenSky® Secured Visa® Credit Card and compare this card with others you are considering and you may find one that fits your needs.
More Details About The Opensky Secured Visa Credit Card
Grace Period. This credit card has a 25-day grace period. A credit card grace period is the period of time between the end of a billing cycle and the date your payment is due. During the grace period you will not be charged interest as long as you pay your balance in full by the payment due date.
The APR on the OpenSky® Secured Visa® Credit Card is 19.14 percent. APR is the annual percentage rate. This is how most credit cards typically state their interest rates. On most cards, you can avoid paying interest on purchases if you pay your balance in full each month by the due date. APR for cash advances is also 19.14 percent. The transaction fee for a cash advance is either $6 or 5% of the amount of each cash advance, whichever is greater. Interest on cash advances kicks in as soon as the transaction hits your account.
Late Payment Fee: Since you are rebuilding youll NEVER pay late but just for your information the APR rises to 21.75 percent if you make a late payment. The late fee is $38. Set up auto-pay to avoid late payments, that way at least the minimum amount due will always be on-time. Remember late payments get reported to the credit bureaus once your account becomes 30 days past due.
Annual fee: The annual fee is $35. According to 2015 data from NerdWallet, the average annual fee is $58, based on a survey of over 2,200 cards. OpenSkys annual fee is pretty good in comparison.
Foreign transaction fees: Its 3 percent, which is within the normal range.
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Anonymous Complaint: Complaint Type: Billing/collection Issues
Dear Sir or Madam,
We are responding to the complaint from our OpenSky Secured ****® Card customer ******* **********.
In order to comply with the Gramm – Leach – Bliley Act , Capital Bank, N.A., has contacted the consumer directly. We have addressed their complaint and a letter was mailed to the customer today.
Our bank has requested that ******* ********** contact the Better Business Bureau, directly, in response to our findings. Please contact us as soon as you may hear from the consumer, or, within 30 days of receipt of this letter to update us on your records.
How Is A Secured Card Different From A Traditional Credit Card
A secured credit card is different from a traditional credit card because, like with any secured debt or loan, you have to put some collateral up. In this case, the collateral is the deposit you make, which creates your credit limit.
With a regular credit card, if you are approved, you receive a credit limit that you can borrow against each time you swipe this card. This credit limit is unsecured, which means you dont have to make any deposits or put anything up for collateral.
Since traditional credit cards are unsecured, the credit card company will require you to apply, and this includes checking your credit. If your credit score meets their standards, youll get approved and can activate your card. If your credit score is too low, you will be denied, which indicates the card issuer is not confident that you will use the card wisely and pay your bill on time.
This isnt anything to take personally since your credit score is just a three-digit number. Still, your credit score indicates how responsible of a borrower you are. If youve had issues paying bills on time in the past or are just getting started and have no credit history, it may be hard to qualify for an unsecured card.
This is when a secured credit card can come in handy. Secured credit cards are geared toward people with bad credit or a thin credit profile.
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