- Build credit with on-time payments
- Reports to the three leading credit bureaus
- Credit limist between $200 and $3,000
- Visa benefits and protections
- Regular Purchase APR: 17.39% variable based on the Prime Rate
- Cash Advance APR: 17.39% variable based on the Prime Rate
- 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 $38
- Return Payment Penalty Fee: Up to $25
- Minimum Deposit Required: $200
What Is Capital Bank?
Capital Bank is a regional bank and credit card company with branches in North Carolina, Tennessee, and Florida. With 300 branches, the bank isn’t the largest but offers a variety of products, including credit cards. One of the most popular products the bank issues is the OpenSky® Secured Visa®, which allows cardholders to boost their credit scores quickly.
What Is a Secured Credit Card?
Capital Bank’s OpenSky Secured Visa Card is a secured credit card. Unlike other issuers and financial institutions, like American Express or Chase, OpenSky does not require excellent credit. But what is a secured card?
Secured cards operate in much the same way as any other credit card but differ in that it requires a security deposit. These security deposits are what make these cards “secured.” Applicants must place a cash deposit (usually of $200) with their application to open an account.
The deposit acts as both the credit limit and collateral. If the cardholder fails to pay their balance or defaults, the bank reclaims the deposit to cover the loss.
Secured cards help people build credit with on-time payments – and OpenSky is one of the best at this task. Deposits start as low as $200, with the maximum deposit being $3,000.
No Credit Check Required
One of the best features of the OpenSky Secured Visa is no credit check is needed. This means that applicants can apply for the card without fear thought their credit score taking a hit. How does this work? Instead of using a “hard pull” of an applicant’s credit report, OpenSky instead uses a “soft pull.”
Soft Inquiry vs. Hard Inquiry
Hard pulls, also known as hard inquiries, allow credit card issuers to see a person’s entire credit history. This information gives them a full picture of an applicant’s risk if they receive a card. Hard inquiries appear on a credit report and cause a drop in credit scores. While this hit dissipates in a few months, the inquiry remains on the credit report for two years.
Soft inquiries, on the other hand, allow lenders to see an applicant’s basic introduction. Soft pulls are like employment checks and do not affect a credit score. OpenSky performs a soft inquiry, relying on income information and employment history to judge an applicant’s merit.
Who Is Capital Bank OpenSky Visa for?
Secured credit cards like the OpenSky Visa are ideal for people who want to establish credit for the first time. They are also great for people with bad credit. Because the card doesn’t require a hard inquiry, it’s excellent for those who are afraid of being rejected for another card but want to boost their score.
Credit building takes time, but with regular reporting to credit bureaus, on-time payments can help a FICO score improve considerably in a short period.
The OpenSky Visa Secured is also great for those with a fair or good credit score that want to quickly raise their credit score and apply for a leading rewards credit card. Because applying doesn’t need a hard pull, applying with a $3,000 deposit can instantly increase available credit and lower credit utilization – all without reducing the average age of credit accounts.
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