What is a "credit limit" and how is it decided?

Your credit limit is the maximum amount that you have been approved for on your card to make purchases. In the case of OpenSky cards, you have the ability to set your credit limit by choosing a security deposit amount between $200 and $3,000 once the underlying security deposit is provided and the requested amount is approved.*

*All applications are subject to approval.

What is the benefit of increasing my credit line?

Aside from the obvious benefits of more purchasing power and a little more cushion against life’s unexpected expenditures, getting more credit can give your credit score a real boost if you continue to spend and pay wisely. A higher credit line can lower your utilization (how much credit you have vs how much you’re using) which counts for 30% of your total credit score. And higher credit scores can give you a better chance at being approved for loans or even net you a lower interest rate on a loan. Not to mention that raising the credit line of your OpenSky card never requires a hard pull of your report—ensuring that you get more opportunities to build without any roadblocks.

Can I raise my credit limit without adding more funds?

After your first six months of on-time payments—and every three months after that—you may be eligible for a credit line increase without adding to your original deposit. This means more to build with and more spending power when you need it most.

How can I request a credit line increase on my secured card?

You can request to raise your credit line at any time—it’s easy, too. Just log in your OpenSky account online or mobile app and choose the Request Credit Line Increase option in the Account Services section. We’ll review your account, and, if approved, you’ll receive an approval letter with instructions on how to send the additional security deposit to fund your new limit.

What if I max out my credit card?

Two of the best ways to build credit are keeping your utilization low and making timely payments on any open balances. If you’ve spent to your limit, you must pay off all or part of the balance before you’ll be able charge any more purchases. Regular monthly payments that pay down the balance will free up those funds. Unfortunately, if you max out your card and fail to make timely monthly payments, then your account will be considered overdue, which will be reported to the credit bureaus.

Does a credit line increase affect my score?

Increasing your credit line can lower your utilization ratio (the amount you can borrow vs the amount you’re using). If your spending and on-time payment habits remain the same, but the amount of available credit has increased, your score can see a boost from that lower utilization. But be aware that the opposite is also true—dramatically increasing your spending with a higher limit can raise your utilization and lower your credit score.

Does a credit line increase require a hard pull/inquiry?

Not with OpenSky. At OpenSky, we’re in the business of helping you build your credit, which means we want to ensure you don’t have roadblocks in your way. Whether you’re requesting a line increase or being considered for one after the first six months, OpenSky will not pull a copy of your credit report in order to provide you with more opportunities.

I’ve been declined for a credit line increase in the past. What can I do to be approved in the future?

OpenSky will primarily look at your spending/payment history when considering a credit line increase. That’s why your first six months of good spending habits and on-time payments makes you eligible for an increase. If you have not been approved in the past, here’s a short list of tips that can help bring you back into consideration in the future.

  • Pay your bill on time every month.
  • Make more than your minimum monthly payment to pay down balances quickly.
  • Keep all your accounts in good standing.
  • Set up monthly payment alerts or use tools like auto-pay to help keep you on track.
Will my security deposit earn interest that increases my credit limit?

No. Security deposit funds are placed in an FDIC-insured account that does not earn interest.

When do I get my security deposit back?

Your security deposit will be returned to you once your account is closed and the balance is paid in full. We may use your security deposit to expedite the pay down of your outstanding balance. In certain circumstances it can take eight (8) weeks however, it generally takes less than four (4) weeks to receive your security deposit refund in the mail.

Please refer to your Card Agreement for additional details related to your security deposit.

What is a "credit limit" and how is it decided?

Your credit limit is the maximum amount that you have been approved for on your card to make purchases. In the case of OpenSky cards, you have the ability to set your credit limit by choosing a security deposit amount between $200 and $3,000 once the underlying security deposit is provided and the requested amount is approved.*

*All applications are subject to approval.

What is the benefit of increasing my credit line?

Aside from the obvious benefits of more purchasing power and a little more cushion against life’s unexpected expenditures, getting more credit can give your credit score a real boost if you continue to spend and pay wisely. A higher credit line can lower your utilization (how much credit you have vs how much you’re using) which counts for 30% of your total credit score. And higher credit scores can give you a better chance at being approved for loans or even net you a lower interest rate on a loan. Not to mention that raising the credit line of your OpenSky card never requires a hard pull of your report—ensuring that you get more opportunities to build without any roadblocks.

Can I raise my credit limit without adding more funds?

After your first six months of on-time payments—and every three months after that—you may be eligible for a credit line increase without adding to your original deposit. This means more to build with and more spending power when you need it most.

How can I request a credit line increase on my secured card?

You can request to raise your credit line at any time—it’s easy, too. Just log in your OpenSky account online or mobile app and choose the Request Credit Line Increase option in the Account Services section. We’ll review your account, and, if approved, you’ll receive an approval letter with instructions on how to send the additional security deposit to fund your new limit.

What if I max out my credit card?

Two of the best ways to build credit are keeping your utilization low and making timely payments on any open balances. If you’ve spent to your limit, you must pay off all or part of the balance before you’ll be able charge any more purchases. Regular monthly payments that pay down the balance will free up those funds. Unfortunately, if you max out your card and fail to make timely monthly payments, then your account will be considered overdue, which will be reported to the credit bureaus.

Does a credit line increase affect my score?

Increasing your credit line can lower your utilization ratio (the amount you can borrow vs the amount you’re using). If your spending and on-time payment habits remain the same, but the amount of available credit has increased, your score can see a boost from that lower utilization. But be aware that the opposite is also true—dramatically increasing your spending with a higher limit can raise your utilization and lower your credit score.

Does a credit line increase require a hard pull/inquiry?

Not with OpenSky. At OpenSky, we’re in the business of helping you build your credit, which means we want to ensure you don’t have roadblocks in your way. Whether you’re requesting a line increase or being considered for one after the first six months, OpenSky will not pull a copy of your credit report in order to provide you with more opportunities.

I’ve been declined for a credit line increase in the past. What can I do to be approved in the future?

OpenSky will primarily look at your spending/payment history when considering a credit line increase. That’s why your first six months of good spending habits and on-time payments makes you eligible for an increase. If you have not been approved in the past, here’s a short list of tips that can help bring you back into consideration in the future.

  • Pay your bill on time every month.
  • Make more than your minimum monthly payment to pay down balances quickly.
  • Keep all your accounts in good standing.
  • Set up monthly payment alerts or use tools like auto-pay to help keep you on track.
Will my security deposit earn interest that increases my credit limit?

No. Security deposit funds are placed in an FDIC-insured account that does not earn interest.

When do I get my security deposit back?

Your security deposit will be returned to you once your account is closed and the balance is paid in full. We may use your security deposit to expedite the pay down of your outstanding balance. In certain circumstances it can take eight (8) weeks however, it generally takes less than four (4) weeks to receive your security deposit refund in the mail.

Please refer to your Card Agreement for additional details related to your security deposit.