KeyBank Secured Credit Card Improves Financial Journeys for More Than 20,000 Program Graduates
Spring 2023 graduating class surpasses a significant milestone in the number of clients who have improved credit scores and financial standing through the program since 2019
CLEVELAND, July 11, 2023 /3BL/ — KeyBank (NYSE:KEY) announced that the Spring 2023 graduating class of the Secured Credit Card program comprises nearly 5,000 clients who have been empowered to improve their credit scores and establish financial stability. This latest announcement brings the total number of graduates to more than 20,000 since the program’s first graduation in 2019.
The Key Secured Credit Card® improves financial wellness by providing eligible clients with opportunities to establish or improve their credit history, bolster savings while building credit, and create better money habits and a foundation of knowledge for other credit cards and products. Cardholder accounts are reviewed twice each year to determine if the client meets the criteria to graduate to an unsecured credit card, supporting financial mobility for clients on their unique journeys.
In today’s economic landscape, 55% of Americans say they are in a difficult financial position — a substantial increase from the year prior (37%) — with a majority (85%) expressing a strong desire to become more aware of their financial picture, according to the KeyBank 2023 Financial Mobility Survey.
Through the Secured Credit Card program, this year’s graduates have made major steps to improve their financial wellbeing, such as:
- 46% received a KeyBank Secured Credit Card with no FICO® score at origination.
- 54% were designated as having low FICO scores at origination, a majority of which were designated as a low score.
- The average improvement in credit score for those in the low category was 95 points.
“This year’s graduates find themselves in a uniquely challenging economic environment,” said Daniel Brown, Director of Consumer Product Management at KeyBank. “Using lessons learned throughout the KeyBank Secured Credit Card program, as well as their improved credit standing, graduates are well positioned for the next chapter of their financial journeys — whether that includes buying a home, planning for life milestones, or simply continuing to build strong credit.”
The longevity of the KeyBank Secured Credit Card program has begun to show its impact. More than 42,000 clients have started or completed their journey through the program with 41% of the clients who graduated having done so within 12 months and 95% within 24 months.
As more graduates come out of the program, we have seen the true positive impact on FICO scores. For those who entered the program with no FICO score, the average score they show at graduation is 728. Throughout the program’s history, those with a FICO score at origination have shown an average increase of 63 points when they graduate.
Additional Key Secured Credit Card features include:
- While clients build their credit, their Secured Credit Card deposit must be kept in a Key Active Saver account, allowing users to build their credit and savings in tandem1 — all with a $0 annual fee2.
- Unlike prepaid or debit cards, the Secured Credit Card reports clients’ history to credit bureaus, allowing them to show progress.
- Cardholders can opt in to check their FICO score for free anytime in online and mobile banking. It’s quick, easy and does not impact their credit score.
- With Key’s temporary lock security feature, cardholders can easily use online or mobile banking to lock and unlock a misplaced credit card, thus avoiding having to cancel it and open a new one—potentially harming their credit score.
For more information on Secured Credit Card, visit https://www.key.com/personal/credit-cards/key-secured-credit-card.jsp
About KeyCorp
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $198 billion at March 31, 2023. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. CFMA# 230623-2138528
1 Use of the Key Secured Credit Card can help build your credit when the minimum payment is made by the due date, each month.
2 The monthly maintenance service charge on the Key Active Saver account will be waived for Key Secured Credit Card clients. The monthly maintenance service charge waiver is only valid as long as the Key Secured Credit Card remains open. If you are graduated to an unsecured card or close your Key Secured Credit Card account, the Key Active Saver monthly maintenance service charge of $4.00 may apply, unless you are the owner on a KeyBank consumer checking account (including KeyBank Hassle-Free Account®).
3 Clients with newly opened credit card accounts may not see their first FICO® Score in online and mobile banking for up to 90 days after enrollment. In certain circumstances, a FICO® Score may not be available for various reasons, e.g., having a limited credit history. FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
