64% of graduating clients had no FICO score at Secured Card origination.
CLEVELAND, May 26, 2021 /PRNewswire/ — KeyBank today announced their May 2021 graduating class from the Secured Credit Card, including a record 4,513 clients. The recent graduation class size has doubled in size when compared to last year’s graduating class. This product empowers clients to build their credit or make a credit comeback as we emerge from the COVID pandemic, enabling credit score improvement for the 2,974 clients starting with no FICO score. Low FICO clients were also able to improve their scores by an average of 78 points in six months.
“Given the economic uncertainty of the past year, we believe it’s more important than ever to help our clients build a strong financial wellness foundation,” said Mitch Kime, Head of Consumer Lending and Payments. “The Key Secured Credit Card is just one of the many tools we make available to ensure that clients can see bright financial futures and stay on the path toward their personal financial achievements, starting with sound credit.”
The Key Secured Credit Card improves financial wellness by providing eligible clients with simple access to credit, while also helping them develop good spending habits and an educational foundation for future credit cards. Cardholder accounts are reviewed twice each year to determine if the client meets the criteria to graduate to an unsecured credit card.
The exponential growth in graduates—with many Secured Credit Card clients being new to Key—demonstrates the bank’s commitment to financial wellness and opening doors for the communities they serve, especially those most impacted by the pandemic. To date, Key has helped more than 25,000 clients build or rebuild credit with the Secured Credit Card.
To further increase access to this product, KeyBank will launch a digital application and approval process for existing clients opening the Secured Credit Card. The upcoming enhancements to secured card originations will speed up consumer access to the product and eliminate the need to apply at a local KeyBank branch.
Other features of the Secured Credit Card:
- KeyBank checks in on clients’ accounts twice each year to determine if they meet the criteria to graduate to an unsecured credit card.
- Unlike prepaid or debit cards, the Secured Credit Card reports clients’ history to credit bureaus, allowing them to show progress.
- While clients build their credit*, their Secured Credit Card deposit must be kept in a Key Active Saver account, enabling users to build their credit and savings in tandem—all with a $0 annual fee1.
- 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
*Use of the Key Secured Credit Card can help build credit when the minimum payment is made by the due date, each month.
1 Please see the cardmember agreement for rates and fees associated with this card.
The Key Secured Credit Card is subject to credit approval.
KeyCorp’s (NYSE: KEY) roots trace back 190 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 $176.2 billion at March 31, 2021. 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 1,100 branches and more than 1,400 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/. KeyBank is Member FDIC. CFMA #210521-1069019