Bad credit is something that no one wants to have because when your credit score is low, it has a huge impact on your ability to get credit now and in the future. It can be a total nightmare improving your credit score, especially when you struggle to get credit. You can’t repair your credit score without any credit, and you can’t get credit with a damaged credit score; it’s like a vicious circle.
However, there is an upside to struggling to get credit, and that is the fact that there are specialist credit cards, such as the Sky Secured Credit Card, that is made for applicants with low or damaged credit scores. There are various cards for people with low credit scores; it’s just a case of determining which the best options are and why. These credit cards come with low fees and low rates of interest and are made to help make the processing of repairing your credit score easier.
Bearing that in mind, the question to focus on is: which credit card is best for people with damaged or low credit scores? Is it the Sky Secured Credit Card, or another option? Read on to find out.
What is the Open Sky Secured Credit Card?
The Open Sky Secured Credit Card offers low rates of interest and is made to help people with a low credit score, start to repair it and built it up again. This card does not require a credit check to get. Instead, a refundable deposit of $200 is required. Open Sky believes in giving everyone the opportunity to improve their credit score and boost their ability to gain credit, which is why they don’t require applicants to undertake a credit check beforehand, all they ask for is a small, refundable deposit.
The refundable deposit used becomes the line of credit that the card comes with; for instance, pay a $200 deposit, and that will be your spending limit. However, should you want a higher spending limit, you can opt to pay up to $3000 as a deposit, and then have a credit limit of the same amount available to you. Issued by Public Savings, the Open Sky Secured Credit Card will accept anyone, regardless of credit score level. Public Savings also report to all three major credit bureaus to help make the process of building your credit score easier.
What are the pros of this card?
Like every credit card, the Open Sky Secured Credit Cards comes with a range of pros and cons. Before we look at the cons, let’s focus on the pros of this credit card.
- Low APR: The APR on this card is 9.75%, which is as low as it gets for people with bad credit scores, and is lower that the 14% APR that most unsecured credit cards request, according to LowCards.com. The lower the rates of interest offered, the better, as that means that the credit card is cheaper to have. So a card that has a rate of under 10% APR is one that is worth having, especially as it will help to build up your credit score, making you eligible for lower interest rate credit cards.
- You can build up your credit. One of the major pros of having a credit card is the fact that you can use it to build up your credit score over time. As long as you keep up to date with your repayments, then your credit score should start rising.
- Although there is a $50 annual fee that comes with this credit card, it is a much lower fee than most other low credit, credit card provider’s request. You may not want to pay a fee at all, but at least this fee is a low one.
What are the cons?
We have looked at the pros; now it is time to look at the cons. The question is, what are the cons of getting an Open Sky Secured Credit Card?
- There is a $50 annual fee that needs to be paid. Coupled with higher interest rates that anyone with a ‘healthy’ credit score has to pay for a credit card, the price of this card can been seen as being somewhat steep. However, compared to other credit cards for people with poor credit, this card is a much more cost-effective option.
- On top of the $50 annual fee that has to be paid, there is also a $25 charge to decrease or increase the card’s credit limit after a year. However, if you plan in advance and get the right credit limit for you when you sign up, this should not be a problem. Choose a credit limit that is a good fit for you from the start, and you can ensure that you don’t have to pay this administrative charge.
- The fact that a refundable deposit has to be paid for the Open Sky Secured Credit Card may help people with a low credit score to be able to get a credit card. But having to pay the entire amount needed is not something that is affordable for everyone, which makes this payment a con of the Open Sky Secured Credit Card.
Overall, the Open Sky Secured Credit Card is a credit card option that is positive. It is open to anyone and everyone, it offers lower than average interest rates for people with poor credit, and it is the ideal way to build up a credit score. However, there is also the fact that there are some downsides to this credit card, such as the fee of $50 a year that comes with it, as well as the $25 administrative fee for changing the credit limit on the card. That being said, overall this credit card is a fantastic option for anyone who is struggling with their low levels of credit and needs a credit card to start building up their credit score again. It might come with a cost, but it is an affordable one, and one that is worth it if you are serious about building up your credit score.