More than 15,000 customers who have graduated from KeyBank’s secure credit card program to date have found financial mobility
CLEVELAND, June 1, 2022 /PRNewswire/ — Today, KeyBank (NYSE: KEY) announced its May 2022 Secured Credit Card Promotion, which includes 4,343 customers whose credit scores and financial stability improved significantly as a result of participating in the program. Since its inception in 2018, KeyBank has helped over 15,000 clients improve their financial situation.
The Secured Credit Card improves financial well-being by providing eligible customers with easy access to credit, while helping them develop good spending habits and an educational foundation for future credit cards. Cardholder accounts are reviewed twice a year to determine if the customer meets the criteria to switch to an unsecured credit card.
This year’s graduates achieved significant milestones in improving their financial well-being, including:
- 69% received a KeyBank secured credit card without a FICO score originally
- 31% were designated as having low FICO scores originally. The majority of them were designated as a low score.
- The average credit score improvement for people in the lower category was 81 points.
“Our graduates are in a better financial position upon leaving this program,” said Mitch Kime, KeyBank Executive Vice President, Consumer Client Growth. “With their newly upgraded status, they are in a better position to apply for loans, more banking opportunities and, in some cases, better insurance rates. All of this goes a long way toward creating a financially healthy life for themselves.”
For one young KeyBank client, the secured credit card paved the way to getting a mortgage within two years, in part because of his credit score. This client wrote directly to the banker who assisted him. “You helped me get my first credit card at 18. (At 19) you helped me with my mortgage and you helped me with my personal loan. All my success in life, I owe you,” the client wrote.
The longevity of the KeyBank Secured Credit Card program is starting to show its impact. More than 40,000 customers have started or completed their journey through the program. 71% of clients who graduated did so within 12 months and 97% within 24 months.
As more graduates exit the program, we have seen the true positive impact on FICO scores. For those who entered the program without a FICO score, the average score they display upon graduation is 717. Throughout the history of the program, those who originally had a FICO score have showed an average increase of 61 points when they graduate.
Additional Secured Credit Card features include:
- Unlike prepaid or debit cards, the secured credit card reports customer history to the credit bureaus, allowing them to show progress.
- While customers are building up their credit*, their secure credit card deposit should be held in a Key Active Saver account, allowing users to build up their credit and savings in tandem, all with a $0 annual subscription1.
- With Key’s temporary lock security feature, cardholders can easily use online or mobile banking to lock and unlock a misplaced credit card, saving the hassle of canceling and opening a new one. news, which could affect their credit score.
For more information on Secured Credit Card, visit https://www.key.com/personal/credit-cards/key-secured-credit-card.jsp
To help people on their financial journey, KeyBank also offers loan assistance, a one-time guaranteed savings payment, designed to help people with limited or slow credit build or re-establish a good credit history, while saving. It can be an invaluable tool for customers looking to establish or repair their credit by repaying their loan on time.
* Using the key secured credit card can help build credit when the minimum payment is made by the due date, each month.
1 The Key Secured Card requires the cardholder to have funds on deposit in a Key Active Saver® account equal to or greater than the assigned credit limit. The variable APR for purchases is 23.74%. There is a $0.50 minimal financial burden when interest is due. The annual fee is $0. Foreign Transaction Fee: 3% of the amount of each foreign transaction after conversion into US dollars. Transactions originating from Canada are excluded from this charge. The Key Secured Card requires the cardholder to have funds on deposit in a Key Active Saver® account equal to or greater than the assigned credit limit. The monthly maintenance service fee on the Key Active Saver account will be waived for Key Secured credit card customers. The monthly service fee waiver is valid only as long as the key-secured credit card remains open. If you switch to an unsecured card or close your key-secured credit card account, the Key Active Saver monthly maintenance service fee of $4.00 may apply, unless you are the owner of a KeyBank current account (including KeyBank Hassle-Free Account®). The rates, fees and other information contained in this disclosure are accurate as of the date of 06/01/2022
KeyCorp’s roots go back nearly 200 years Albany, New York. Based at Cleveland, OhioKey is one of the nation’s largest banking financial services companies, with assets of approximately $181.2 billion at March, 31st2022.
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 offers a wide range of sophisticated corporate and investment banking products, such as M&A advisory, public and private debt and equity, syndications and derivatives to middle market companies in selected sectors around the world. United States under the trading name KeyBanc Capital Markets. For more information, visit https://www.key.com/. KeyBank is an FDIC member. Copyright © 2022 KeyCorp®. All rights reserved