Opensky Secured Visa vs Chime Credit Builder Credit Card

Old School vs New Age Secured Credit card

The Opensky Secured Visa is a traditional secured credit card jammed packed with features like "no credit checks", credit limit increases without additional security deposit and the chance to graduate to an unsecured credit card in as little as 6 months. The Chime Credit Builder Secured Visa is one of the many NEW secured card offerings that also comes with "no credit checks" but works a little differently from traditional secured credit cards. This is a very interesting comparison and at the end, we will find out which is the better card to get for rebuilders.

The Basics

Opensky Basics

The Opensky Secured Visa is a traditional secured credit card that is jam packed with features that makes it so well known and reputable in the rebuilder community. It has an annual of $35 and you can fund your security deposit between $200 and $3,000 (which becomes your credit limit).

Unlike most secured credit cards, Opensky does not check your credit when you apply so you will definitely be approved and will get your card as long as you fund the security deposit. After six months, you will also be considered for a credit limit increase without additional security deposits and also a chance to graduate to their unsecured credit card.

Chime Credit Builder Secured Basics

The Chime Credit Builder Secured Visa also does not perform any credit check and unlike Opensky, it does not charge any annual fee. However, getting the Chime Secured Credit Card is a little different to getting a traditional secured card. You first have to open a Chimes Spending Account with them. This is essentially an online banking account. You then have to set up a direct deposit and have a direct deposit of at least $200 deposited into your account within 365 days of opening your "spending account".

Once you have met these criteria, you set up a "credit builder account", which is essentially your secured credit card. You can transfer money from your Chime "spending account" to the "credit builder account" as a security deposit. There is no minimum of maximum amount that you can transfer over. You can transfer over any amount which will act as your credit limit (like a traditional secured credit card). However, Chime differs from traditional secured credit cards in that you can use your security deposit to pay your monthly bills. You can then top it up the next moment and even do it automatically with Chime's "Move My Pay" feature. In fact, in your thinking about this carefully, Chime works much like a prepaid card and the beauty of this is that your security deposit is not tied up. You do have to pay in full with the Chime Secured Visa and hence there is no APR.

Similarities

• No Credit Checks - Both cards do not require any credit checks although Chime requires you to jump through more hoops like setting up an online account and a direct deposit.

Differences

• Requirements - While Opensky has minimal requirements (other than to fund your security deposit), Chime requires setting up an online bank account and direct deposit.


• Secured vs Prepaid - While Opensky works like a traditional secured credit card, Chime works more like a prepaid credit card in that though the security deposit sets you limit, you can use it to pay your bills and simply top up every month (to your "credit builder account") from your "spending account".


• Credit Limit Increase - Opensky will consider you for a credit limit increase without any additional security deposit after 6 months. Chime does not offer this feature. If you want to increase your credit limit, you have to transfer more money from your "spending account" to your "credit builder account".


• Graduate to Unsecured - Opensky will also consider you for a graduation to their unsecured credit card after 6 months. Chime does not offer such opportunities as they do not have any unsecured credit cards.


• Pay in full Opensky allows you to carry a balance (though we do not recommend it). Chime requires that you pay in full (which we whole-hearted support).


• Security Deposit Amount - Opensky allows you to deposit anywhere from $200 to $3,000 as your security deposit. Chime has no minimum or maximum security deposit requirements.

Which is better?

As you can see from the above comparisons, though both the Opensky and Chime are secured credit cards they are really different. And I suspect that it will appeal to different people.

Many of you like the fact that the Chime Credit Builder Credit Card has no annual fee and that you can use the security deposit (money transferred from your "spending account" to the "credit builder account") can be use to pay your bills (and resembles much like a prepaid credit card), and find these features very attractive. If you do not mind setting up an online banking account and direct deposit, I can understanding how Chime is very appealing.

However, there are many of you who already have a banking account and are happy with it and already have your payroll direct deposit set up and do not want to go through the hassle of changing banks and setting up a new direct deposit. If this describes you, the Opensky Secured Visa is a great card to get as you will definitely be approved, gives you a chance of credit limit increases without additional security deposits and even to graduate to an unsecured credit card (all without a single hard inquiry).

Both the Opensky and Chime secured credit card are very good for rebuilders. They are just different and so I find it hard to say which is better. It is like comparing Lodi apples and Fuji apples. One is soft and great for apple sauce but the other is hard and crispy. Both these card are the same yet different. They will appeal to different rebuilders for different reasons.