What is the difference between secured and unsecured credit cards?

The main difference is that unsecured credit cards don't require a security deposit while a secured card does require a security deposit. With an unsecured card, the maximum limit is set by the issuer and is usually based on your credit score and history. With a secured card, the maximum limit is set by the security deposit amount used to fund the card.

What are the advantages of an unsecured card?

The main advantage is not having the limitation of providing a security deposit to fund it. Because of that, credit limits can be higher. Additionally, for those with good credit, these cards can have competitive interest rates and other rewards.

How can I qualify for an unsecured credit card?

Companies often look for people who have a responsible credit history, as it represents a history of good spending habits and a high likelihood that money lent (that is, your line of credit) will be paid back on time. The higher your score, the better chances you have for being approved for a card with competitive interest rates.

Can you change a secured credit card to an unsecured credit card?

Yes. OpenSky now provides a pathway for people who want to build their credit with a secured card to graduate to an unsecured card. With OpenSky, you can start building credit quickly and get evaluated for line increases starting at 6 months. You may be eligible for an OpenSky Gold Card in as little as 6 months—helping you to double your credit building power, with even more flexibility and freedom.

Can I get an unsecured card with bad credit?

It may be tough to be approved for this type of card if you have a low credit score. Generally “bad” credit is considered to be a credit score below 579, though some lenders may have different thresholds. We recommend using a secured card to build and improve your credit to help you graduate to an unsecured card. A higher credit score can help indicate to a lender that you have good spending and payment habits—earning you better rates and more benefits when you unlock this type of credit.

What is a secured card and how does it work?

Secured cards are a type of credit card that are backed by a cash deposit, but otherwise work just like regular cards. The refundable deposit used to fund your OpenSky card is equal to your spending limit. Using it for everyday purchases and making on-time monthly payments help you build your credit.

How do I get a secured credit card?

Applying for OpenSky is easy, with no credit check or risk to apply, and an impressive 88% average approval rate*. Just answer a few simple questions, provide some basic information, and click “Submit” to send your form. You’ll receive your approval in real-time.

How can I build credit fast?

An OpenSky secured card is designed specifically to help you quickly grow and improve credit by providing monthly reporting to the three major bureaus, built-in line increases, accessible tools that promote good spending habits, and turbocharged growth. All of these things work together to improve your FICO score month after month, and help you reap the rewards of financial wellness.

What is the best secured credit card?

We don’t mean to brag (okay, we do), but the OpenSky Secured Visa Credit Card has been rated the best secured card to build credit by a whole bunch of industry experts, like Nerdwallet, Forbes, NextAdvisor, and The Points Guys.

Third party advertisers, such as Credit Karma, receive compensation from OpenSky.

What is the difference between secured and unsecured credit cards?

The main difference is that unsecured credit cards don't require a security deposit while a secured card does require a security deposit. With an unsecured card, the maximum limit is set by the issuer and is usually based on your credit score and history. With a secured card, the maximum limit is set by the security deposit amount used to fund the card.

What are the advantages of an unsecured card?

The main advantage is not having the limitation of providing a security deposit to fund it. Because of that, credit limits can be higher. Additionally, for those with good credit, these cards can have competitive interest rates and other rewards.

How can I qualify for an unsecured credit card?

Companies often look for people who have a responsible credit history, as it represents a history of good spending habits and a high likelihood that money lent (that is, your line of credit) will be paid back on time. The higher your score, the better chances you have for being approved for a card with competitive interest rates.

Can you change a secured credit card to an unsecured credit card?

Yes. OpenSky now provides a pathway for people who want to build their credit with a secured card to graduate to an unsecured card. With OpenSky, you can start building credit quickly and get evaluated for line increases starting at 6 months. You may be eligible for an OpenSky Gold Card in as little as 6 months—helping you to double your credit building power, with even more flexibility and freedom.

Can I get an unsecured card with bad credit?

It may be tough to be approved for this type of card if you have a low credit score. Generally “bad” credit is considered to be a credit score below 579, though some lenders may have different thresholds. We recommend using a secured card to build and improve your credit to help you graduate to an unsecured card. A higher credit score can help indicate to a lender that you have good spending and payment habits—earning you better rates and more benefits when you unlock this type of credit.

What is a secured card and how does it work?

Secured cards are a type of credit card that are backed by a cash deposit, but otherwise work just like regular cards. The refundable deposit used to fund your OpenSky card is equal to your spending limit. Using it for everyday purchases and making on-time monthly payments help you build your credit.

How do I get a secured credit card?

Applying for OpenSky is easy, with no credit check or risk to apply, and an impressive 88% average approval rate*. Just answer a few simple questions, provide some basic information, and click “Submit” to send your form. You’ll receive your approval in real-time.

How can I build credit fast?

An OpenSky secured card is designed specifically to help you quickly grow and improve credit by providing monthly reporting to the three major bureaus, built-in line increases, accessible tools that promote good spending habits, and turbocharged growth. All of these things work together to improve your FICO score month after month, and help you reap the rewards of financial wellness.

What is the best secured credit card?

We don’t mean to brag (okay, we do), but the OpenSky Secured Visa Credit Card has been rated the best secured card to build credit by a whole bunch of industry experts, like Nerdwallet, Forbes, NextAdvisor, and The Points Guys.

Third party advertisers, such as Credit Karma, receive compensation from OpenSky.