After many attempts to find a secured credit card that I would be approved for due to my bad credit, I ran across Open Sky on a finance board about people trying to rebuild their credit after bankruptcy. I looked into it immediately and after thinking about it for about two weeks, I finally made the leap. The process was easy, I used my Netspend prepaid debit card to load the initial deposit of $200 on the card. The next week, I received my shiny, brand new card. Before the end of the month, the credit bureaus had already updated with my card information and my first statement.
Open Sky did charge me a $35 fee(yearly) which I think is a small price to pay especially since they did not run my credit to determine my eligibility and updated the credit bureaus almost immediately. For the second month, my credit score dropped and after some CIA investigation, I figured out why. Open Sky reports to the credit bureaus around the 4th of the month. Although I had cleared my balance on my card before the due date of the 28th, they don't report until the 4th so I have to keep the utilization down to the 4th in order to see substantial change on my credit report. So for October, that's what I did. My credit score jumped 29 points.
When I first opened this card in August, I was 450. Two months later, I'm at 542 and I have had negative things added to my report. Utilizing this card is a quick and easy way to boost your credit score with very little consequences. Next month, I will increase my limit by adding an additional $100 to my deposit and then once I hit 600, I will open a traditional credit card, or get a car loan.
I would recommend this card 100% to anyone trying to build or re-build their credit. The only negative thing I have to say about them is that their call wait time is exorbitant. I've called them twice and had to wait at least 30 minutes or more. Otherwise than that, they are awesome in my book.
To find out more about the Open Sky Credit Card visit their website here.
To read more about my terrible credit score and personal finance, click on the links below.
Why I decided NOT to file for bankruptcy in NYC
Assistance if you've fallen behind in your rent
Life after fucking up your credit
Buying a Metrocard can help build your credit
Wage Garnishment in New York