When you have bad credit, it may seem like no one wants to give you a credit card. You may be used to feeling the sting of rejection when it comes to your financial plans. However, there are some cards out there that can help you get out of the cycle of bad credit. The Capital One Secured credit card and the OpenSky Secured Visa are two examples of secured cards designed for people with bad credit.
Let’s face it: Using credit in today’s society is unavoidable. If you have bad credit, you could be able to start raising your score by implementing smart strategies around one of these cards.
Capital One Secured
People love the Capital One Secured card because they can get a credit limit that's higher than the cost of their security deposit—a rare benefit of this secured card. More often, the deposit you pay determines your credit limit, sometimes sans annual and/or processing fees. With the Capital One Secured, the deposit doesn't have to match the credit limit dollar for dollar. Online reviews on the Capital One Secured MasterCard are very positive.
One complaint, however, is that many customers turned to Capital One for one of their unsecured cards that are among the best, bar none. Instead, they were disappointed to find they only qualified for a secured card due to credit limitations. When it comes to Capital One, they set the bar high and customer expectations may need to come down a little if they are in the building credit phases with this card.
Luckily, it doesn’t currently have an annual fee. So once you put down a deposit and receive your credit limit, that’s one less thing to worry about. There aren’t a lot of frills here, but once users establish better credit they can increase their limit or get a better card offer.
OpenSky Secured Credit
OpenSky Secured Visa is provided by Capital Bank. It doesn't have a very good reputation, with a miserable D-minus grade from the Better Business Bureau. Still, you may be a fit for this card if you are "credit invisible". According to CNBC, 45 million Americans don't even have a credit score.
Who are the credit invisible? If you're one of those people but you'd like to start building a score the OpenSky Visa is for you. Since there is no credit check involved, anyone—even someone without a credit score—can get approved as long as they have the deposit and are agreeable to paying an annual fee.
Capital One's secured card is better than OpenSky's because it provides a credit option for low credit customers with no annual fee.
While both are secured cards for people with poor credit history who want to rebuild or establish credit, each without any bells or whistles, being a Capital One customer could lead you to eventually graduate to one of their exceptional unsecured cards once you build credit. That said, if you start with the OpenSky Secured card there’s no reason you can’t apply for a better unsecured card later in your credit journey, either. It will just have to be with a different bank like Capital One, Citi or Chase, as there aren’t a lot of options from OpenSky.
Why Capital One Secured Is Stronger
There are lots of secured credit cards out there designed to help people with poor credit history establish or rebuild their credit. We like the Capital One Secured credit card because it has no annual fee at the time of writing this article and it comes from a name you can trust.
Even so, there’s a group of “credit invisible” people who might benefit more strongly from an OpenSky Secured card. The truth is any secured card, if used correctly, can help you build a solid credit history. The most important thing is to understand the principles behind using your credit card to achieve a high credit score and being a responsible shopper.