Do You Need a Secured Credit Card If You Have a Bad Credit Score?

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Last updated on February 9th, 2024

Secured credit cards play an essential role in building credit. Secured cards work by requiring a cash deposit, which acts as both the credit line and security in case of late payments. This deposit makes them easier to get for those with bad credit scores. For some, however, raising the money for a deposit is unaffordable. Is there another option? Do you need a secured credit card if you have bad credit?

The answer to this question is an emphatic no. There is a wide selection of unsecured credit cards available to those with no credit history or a bad credit score they want to repair. Credit cards available to those with lower credit scores are known as subprime credit cards.

Credit Cards for Bad Credit

Subprime cards typically offer lower credit limits and a fixed APR. Fortunately, they don’t require a deposit. They do, however, usually have an annual fee. For many, this is a fair price to pay for access to a tool that can quickly rebuild credit.

One of the more popular examples of a credit card for poor credit is the Milestone Mastercard. The card offers the chance to build credit while also providing the benefits of a Mastercard product. The card reports to the three major credit reporting bureaus, so paying in-full each month can significantly boost a person’s score in as little as six months.

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The Indigo Mastercard is another option that attracts a lot of attention from those with poor credit scores. The card features the same fixed-rate APR as the Milestone, plus the same Mastercard benefits and global acceptance. Unlike the Milestone, however, Indigo allows cardholders to choose from several eye-catching card designs – giving cardholders the ability to build credit and express their personality at the same time.

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Credit Cards for No Credit

There are also several unsecured card options for people with no credit history. These cards differ from the Indigo and Milestone in that they don’t partner with a payment network like Mastercard. Instead, these cards offer a credit line of $750 to shopping outlets.

One such example of this type of card is the Group One Platinum Card. The card offers a $750 limit, which applies towards the Horizon Outlet. That online store features a massive selection of products, including clothing, gifts, sporting goods, and more. The variety of items available means the card isn’t just for building credit – it also offers access to great deals.

But building credit is something that the Group One Platinum Card does very well. The card reports activity to a major credit bureau (from Equifax, Experian, and TransUnion), meaning even those with no credit at all can quickly build a positive credit history. That, in turn, can mean better credit card offers in the future.

Other benefits of this type of cards include:

  • No employment checks
  • Fast and easy application processes
  • Decisions within minutes
  • No purchase APR

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Secured Credit Cards Still Offer Value

For those unsure if they want to leap to an unsecured credit card, secured credit cards provide the basis for learning to effectively use a credit card with a safety net. Secured cards allow cardholders to practice keeping their credit utilization low and get in the habit of paying their balance in full every month. These two habits are a sure-fire way to improve your credit score.

There are a considerable number of secured cards on the market, from major issuers like Capital One and Discover, all the way down to your local credit union. Some, like the Discover It Secured Card, even offer rewards. But while secured cards are easier to get, that doesn’t mean everyone will be approved.

Being declined for a secured credit card can be tough for a person’s self-confidence. And when you are struggling to repair your credit, positivity is key. Fortunately, there are secured cards that don’t require credit checks. One such example is the OpenSky® Secured Visa® Credit Card.

The OpenSky card offers the purchasing power of a Visa credit card, plus a moderate annual fee. Many secured cards charge annual fees, with some rising as high as $100. With the OpenSky Card, this fee is $35, which is very reasonable. Plus, with minimum deposits of only $200, it’s an affordable option.

One of the top highlights of the OpenSky Secured Visa, however, is the fact that there is no minimum credit required. That means this is a solid option to consider for those who are both building and rebuilding their credit. Decisions arrive in minutes, with high approval rates. And the issuer reports card activity to the major credit bureaus, providing an avenue for increasing one’s credit score and reputation.

OpenSky® Secured Visa® Credit Card

OpenSky® Secured Visa® Credit Card
Poor-No Credit Required
BestCards refers to a variation of FICO Score 9, which is one of many different types of credit scores. A financial institution may use a different score when deciding whether to approve you for a credit card. Please note that the range shown here is our own estimation and not a guarantee of credit needed to be approved for any given card. Recommended Credit: Poor / No Credit Required
Visa Processing Network
$35 Annual Fee

OpenSky® Secured Visa® Credit Card

  • 25.64% (variable) Regular Purchase APR
  • 25.64% (variable) Cash Advance APR

At a Glance

The OpenSky® Secured Visa® is a secured credit card that offers requires a low minimum deposit and features no credit checks for approval. The card, issued by Capital Bank, provides an easy route to better credit by offering credit limits as low as $200, a moderate fixed-rate APR, and a reasonable $35 annual fee.

  • Best Benefits
  • Rates & Fees
  • Why Should You Apply?
  • New feature! Earn up to 10% cash back on everyday purchases
  • No credit check to apply. Zero credit risk to apply!
  • Looking to build or rebuild your credit? 2 out of 3 OpenSky cardholders increase their credit score by an average of 41 points in just 3 months
  • Get free monthly access to your FICO score in our mobile application
  • Build your credit history across 3 major credit reporting agencies: Experian, Equifax, and TransUnion
  • Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
  • Fund your card with a low $200 refundable security deposit to get a $200 credit line
  • Apply in less than 5 minutes with our mobile first application
  • Choose the due date that fits your schedule with flexible payment dates
  • Fund your security deposit over 60 days with the option to make partial payments
  • Over 1.4 Million Cardholders Have Used OpenSky Secured Credit Card To Improve Their Credit
  • *See Rewards Terms and Conditions for more information
  • Regular Purchase APR: 25.64% (variable)
  • Cash Advance APR: 25.64% (variable)
  • Cash Advance Transaction Fee: Either $6 or 5% of the amount of each cash advance, whichever is greater.
  • Annual Fee: $35
  • Foreign Transaction Fee: 3% of each transaction in U.S. dollars
  • Late Payment Penalty Fee: Up to $40
  • Return Payment Penalty Fee: Up to $25
  • Minimum Deposit Required: $200
  • You're struggling to get accepted for other secured credit cards
  • You don’t have a credit history
  • You have bad credit and want to improve your credit score
  • You have a large deposit and want a quick pick-me-up for their credit score
  • You want access to a useful knowledge base of credit information and resources
OpenSky® Secured Visa® Credit Card

OpenSky® Secured Visa® Credit Card

Terms & Conditions

Secured Cards Aren’t Just for Bad Credit

Secured cards like the OpenSky make great sense for those looking to boost their credit score quickly. This applies to those with fair or good credit scores, as well. Using the card to make a large deposit, you can instantly raise your credit limits as high as $3,000. Combined with the lack of a hard inquiry, it can push a cardholder’s score up quickly – potentially helping them get better rates on future auto loans, mortgages, or personal loans.

Editorial Disclosure – The opinions expressed on's reviews, articles, and all other content on or relating to the website are solely those of the content’s author(s). These opinions do not reflect those of any card issuer or financial institution, and editorial content on our site has not been reviewed or approved by these entities unless noted otherwise. Further, lists credit card offers that are frequently updated with information believed to be accurate to the best of our team's knowledge. However, please review the information provided directly by the credit card issuer or related financial institution for full details.

About: Cory Santos
Cory Santos

Cory is the senior credit card editor at BestCards, specializing in everything credit card-related. He’s worked extensively with credit cards and other personal finance topics, including nearly five years at BestCards. Cory’s extensive knowledge is an essential part of the BestCards experience, helping readers to live their best financial lives with up-to-date insights and comprehensive coverage of all facets of the credit card space, including market trends, rewards guides, credit advice, and comprehensive credit card reviews.

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BestCards is an independent, Florida-based credit card comparison platform. Many of the card offers that appear on this site are from companies from which BestCards receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). BestCards does not include all card companies or all card offers available in the marketplace.