Review: Open Sky Credit Card

open-sky-cc225The Open Sky credit card is a secured credit card, targeted mainly at those who have no credit history or those who have a poor credit history and want to improve it. Our review of the Open Sky credit card is below:

Before discussing the Open Sky credit card, a brief discussion on what a secured credit card is. Most credit cards are “unsecured,” meaning you don’t have to put down any collateral for what amounts to a credit card loan each month. The bank is trusting you to pay back your debt, but they don’t have any of your money or property as security against you failing to pay.

A secured credit card, on the other hand, does require collateral. You must put down a security deposit in order to get the card. You use the card like any other credit card, and you pay your balance off each month — the security deposit only exists to protect the bank, it is not used to pay your balance unless you fail to pay. You get the security deposit back when you choose to close your account, provided your balance is zero.

As mentioned above, banks offer secured credit cards to people with no credit history or a bad credit history, and making payments on time with the secured card can boost your credit score, hopefully to a place where you qualify for an unsecured credit card.

The Open Sky credit card from Capital Bank is a secured credit card, and we think it’s a good one. (There are some bad ones out there, so be careful.)

To open an Open Sky credit card, you deposit anywhere from $200 to $3000 as a security deposit. The credit line on your card then equals the amount of your security deposit.

The card does have an annual fee of $35, which is NOT part of the refundable security deposit, and the card’s interest rate is 17.64%. Both the annual fee and the interest rate are competitive with other secured credit cards on the market. (You can do a direct comparison on our Secured Credit Cards page.)

We do have one quibble with the Open Sky secured card. If you decide that you want to change the amount of your security deposit in the future, either up or down, there may be a fee to do so, although we couldn’t find out how much that fee could be anywhere in the card’s terms and conditions. The fee seems unnecessary and it is not a fee seen in most other secured cards.

All in all, though, the Open Sky credit card ranks well for a secured credit card. If you want to apply for an Open Sky card, you can do so via this online application.

See also: Unsecured Credit Cards For Bad Credit, Instant Approval Credit Cards, Store Credit Cards