Americans' Credit Scores Rise With Help From KeyBank Secured Credit Card
KeyBank has announced the graduation of 4,343 clients from its Secured Credit Card program as of May 2022, contributing to over 15,000 clients improving their financial mobility since 2018. The program aims to enhance financial wellness and has shown significant results, including an average credit score increase of 81 points for those who initially had low scores. After graduation, 71% of clients graduated within 12 months. The program enables clients to establish credit with a $0 annual fee, promoting good spending habits and financial literacy.
- Over 15,000 clients improved financial mobility through the program.
- 4,343 clients graduated in May 2022, showcasing significant credit score improvements.
- Average credit score increase of 81 points for low initial score clients.
- 71% of graduates completed the program within 12 months.
- None.
More than 15,000 clients who graduated from KeyBank's Secured Credit Card program to date have found financial mobility
CLEVELAND, June 1, 2022 /PRNewswire/ -- Today, KeyBank (NYSE: KEY) announced its May 2022 graduating class of the Secured Credit Card, which include 4,343 clients whose credit scores and financial stability have significantly risen as a result of participating in the program. Since it began in 2018, KeyBank has helped more than 15,000 clients improve their financial standing.
The 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.
This year's graduates have made major steps in improving their financial well-being, such as:
69% received a KeyBank Secured Credit Card with no FICO score at origination31% 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 81 points.
"Our graduates are in a greater financial position coming out of this program," said Mitch Kime, KeyBank Executive Vice President of Consumer Client Growth. "With their newly improved standing, they are better positioned in applying for loans, more banking opportunities, and in some cases, better insurance rates. All of it adds up substantially towards creating a financially healthy life for themselves."
For one young KeyBank client, the Secured Credit Card created a path towards obtaining a mortgage within two years, in part because of their credit score. That client wrote directly to the banker who assisted him. "You helped me get my first credit card at 18-years-old. (By 19,) you helped me with my mortgage and you helped me with my personal loan. My whole success in life I owe to you" wrote the client.
The longevity of the KeyBank Secured Credit Card program is beginning to show its impact. More than 40,000 clients have started or completed their journey through the program.
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 717. Throughout the program's history, those with a FICO score at origination have shown 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 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
To help people on their financial journey, KeyBank also offers Loan Assist, a unique Savings Secured Installment, designed to help individuals with limited credit or previous slow credit establish or reestablish good credit history, while building savings. It can be a valuable tool for clients looking to build or repair their credit when clients make on-time payments to their loan.
*Use of 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 card holder to have funds on deposit in a Key Active Saver® account in an amount greater than or equal to the assigned credit limit. The variable APR for purchases is
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
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/. KeyBank is Member FDIC. Copyright © 2022 KeyCorp®. All Rights Reserved
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