Key Secured Credit Card® Builds Financial Futures for More than 30,900 Program Graduates
KeyBank (NYSE: KEY) announced that over 2,800 clients graduated from the Key Secured Credit Card® program in Spring 2024, bringing the total number of graduates to more than 30,900 since 2019. The program aims to help clients establish or improve their credit history and financial stability. Key findings include:
- 26% of graduates had low FICO scores at origination, with an average improvement of 73 points
- 60% of clients graduated within 12 months, and 93% within 24 months
- Graduates with no initial FICO score achieved an average score of 721
- Overall, graduates showed an average increase of 63 points in their FICO scores
The program features include a $0 annual fee, free FICO score checks, and credit history reporting to bureaus.
KeyBank (NYSE: KEY) ha annunciato che oltre 2.800 clienti hanno completato il programma della Key Secured Credit Card® nella primavera del 2024, portando il totale dei laureati a più di 30.900 dal 2019. Il programma è progettato per aiutare i clienti a stabilire o migliorare la loro storia creditizia e stabilità finanziaria. I risultati chiave includono:
- Il 26% dei laureati aveva punteggi FICO bassi al momento dell'iscrizione, con un miglioramento medio di 73 punti
- Il 60% dei clienti ha conseguito il diploma entro 12 mesi, e il 93% entro 24 mesi
- I laureati senza punteggio FICO iniziale hanno raggiunto un punteggio medio di 721
- Complessivamente, i laureati hanno mostrato un aumento medio di 63 punti nei loro punteggi FICO
Le caratteristiche del programma includono una tassa annuale di $0, controlli gratuiti del punteggio FICO e segnalazione della storia creditizia agli enti.
KeyBank (NYSE: KEY) anunció que más de 2,800 clientes se graduaron del programa de la Key Secured Credit Card® en la primavera de 2024, llevando el número total de graduados a más de 30,900 desde 2019. El programa tiene como objetivo ayudar a los clientes a establecer o mejorar su historial crediticio y su estabilidad financiera. Los hallazgos clave incluyen:
- El 26% de los graduados tenía puntajes bajos de FICO en el momento de su registro, con una mejora promedio de 73 puntos
- El 60% de los clientes se graduó en un plazo de 12 meses, y el 93% en 24 meses
- Los graduados sin puntaje FICO inicial lograron un puntaje promedio de 721
- En general, los graduados mostraron un aumento promedio de 63 puntos en sus puntajes FICO
Las características del programa incluyen una tarifa anual de $0, chequeos gratuitos del puntaje FICO y reporte del historial crediticio a las agencias.
KeyBank (NYSE: KEY)는 2024년 봄에 2,800명 이상의 고객이 Key Secured Credit Card® 프로그램을 졸업했으며, 이에 따라 2019년 이후 졸업생 수가 30,900명 이상에 달했다고 발표했습니다. 이 프로그램은 고객이 신용 이력을 만들거나 개선하고 금융 안정성을 높이는 데 도움을 주는 것을 목표로 합니다. 주요 발견 사항은 다음과 같습니다:
- 졸업생의 26%가 등록 당시 낮은 FICO 점수를 가지고 있었으며, 평균 73점 개선되었습니다.
- 고객의 60%가 12개월 이내에 졸업하였고, 93%가 24개월 이내에 졸업하였습니다.
- 초기 FICO 점수가 없는 졸업생은 평균 721점의 점수를 달성하였습니다.
- 전반적으로 졸업생들은 FICO 점수에서 평균 63점 증가를 보였습니다.
프로그램의 특징으로는 연회비 $0, 무료 FICO 점수 확인 및 신용 이력 보고가 포함됩니다.
KeyBank (NYSE: KEY) a annoncé qu'au printemps 2024, plus de 2 800 clients ont obtenu leur diplôme du programme de la Key Secured Credit Card®, portant le nombre total de diplômés à plus de 30 900 depuis 2019. Le programme vise à aider les clients à établir ou à améliorer leur historique de crédit et leur stabilité financière. Les conclusions principales comprennent :
- 26 % des diplômés avaient des scores FICO faibles lors de l'origine, avec une amélioration moyenne de 73 points
- 60 % des clients ont obtenu leur diplôme en 12 mois et 93 % en 24 mois
- Les diplômés sans score FICO initial ont obtenu un score moyen de 721
- Dans l'ensemble, les diplômés ont montré une augmentation moyenne de 63 points de leurs scores FICO
Les caractéristiques du programme incluent des frais annuels de 0 $, des vérifications gratuites du score FICO et un reporting de l'historique de crédit aux agences.
KeyBank (NYSE: KEY) gab bekannt, dass im Frühjahr 2024 über 2.800 Kunden das Programm für die Key Secured Credit Card® abgeschlossen haben, womit die Gesamtzahl der Absolventen seit 2019 auf mehr als 30.900 gestiegen ist. Das Programm soll den Kunden helfen, ihre Kreditgeschichte und finanzielle Stabilität aufzubauen oder zu verbessern. Wichtige Ergebnisse umfassen:
- 26% der Absolventen hatten beim Einstieg niedrige FICO-Werte, mit einer durchschnittlichen Verbesserung von 73 Punkten
- 60% der Kunden schlossen innerhalb von 12 Monaten ab, und 93% innerhalb von 24 Monaten
- Absolventen ohne anfänglichen FICO-Score erreichten einen Durchschnittswert von 721
- Insgesamt zeigten die Absolventen eine durchschnittliche Erhöhung von 63 Punkten bei ihren FICO-Werten
Zu den Programmmerkmalen gehören eine Jahresgebühr von 0 $, kostenlose FICO-Score-Prüfungen und die Berichterstattung über die Kreditgeschichte an Auskunfteien.
- Over 2,800 clients graduated from the Key Secured Credit Card® program in Spring 2024
- Total number of graduates exceeded 30,900 since the program's inception in 2019
- 26% of graduates with initially low FICO scores improved by an average of 73 points
- 60% of clients graduated within 12 months, and 93% within 24 months
- Graduates with no initial FICO score achieved an average score of 721
- Overall, graduates showed an average increase of 63 points in their FICO scores
- 1,200 clients received a credit line increase upon graduation
- None.
Insights
KeyBank's Secured Credit Card program marks a significant milestone in financial inclusion efforts, with over 30,900 graduates since 2019. This achievement underscores the growing importance of credit-building tools in fostering financial stability. The program's success is evident in the 73-point average credit score improvement for those initially categorized as "low FICO score" clients.
What's particularly noteworthy is the program's efficiency:
The introduction of credit line increases for 1,200 clients this year is a positive development, potentially accelerating their credit-building journey. However, it's important to monitor how these increases impact long-term financial behaviors and credit utilization ratios.
While the program shows promise, it's important to consider its scalability and accessibility. With
KeyBank's Secured Credit Card program demonstrates a strategic approach to customer acquisition and retention in the competitive banking landscape. By targeting the underserved market of consumers with or poor credit history, KeyBank is positioning itself as a partner in financial growth, potentially fostering long-term customer loyalty.
The program's structure is particularly clever:
- The use of a Key Active Saver account as collateral encourages savings behavior alongside credit building.
- Waiving the
$4 monthly maintenance fee on the savings account while the card is active provides additional value to customers. - The
$0 annual fee on the credit card itself removes barriers to entry for cost-conscious consumers.
The graduation process, which upgrades clients to an unsecured card and releases their savings, creates a natural pathway for customers to expand their relationship with KeyBank. This could lead to increased cross-selling opportunities for other banking products like mortgages or personal loans.
However, the true test of this program's success will be in customer retention post-graduation. KeyBank should focus on developing compelling offers to keep these newly creditworthy customers from being lured away by competitors. Additionally, the bank should consider how this program fits into its broader digital banking strategy, as the ability to monitor credit scores and lock/unlock cards through online and mobile banking is increasingly becoming an industry standard.
Achievement celebrates hard work done by clients to build their credit history and grow their financial future
The Key Secured Credit Card is a critical piece of KeyBank's commitment to financial education and empowerment, helping clients who are ready to establish their credit history or want to improve it. According to the KeyBank 2024 Financial Mobility Survey,
"In our current economic environment, Americans are working to build their financial resiliency," said Dan Brown, Director of Consumer Product Management at KeyBank. "Through the lessons learned and goals set in the Key Secured Credit Card program, these graduates have empowered themselves with the necessary skills to help them on their financial paths."
When clients graduate, their Key Secured Credit Card® is upgraded to an unsecured credit card and the hold on the funds in their Key Active Saver® account that were pledged as collateral to secure the Key Secured Credit Card are released. New as of this year, as part of the graduation process, 1,200 clients received a credit line increase in addition to strengthening their credit profile with the help of the Key Secured Credit Card. An enhanced communication process was also introduced to all participants, aiming to provide greater clarity and transparency on their credit building journey, as well as sound advice and guidance that further supports their financial health.
Through the Secured Credit Card program, the Spring 2024 graduates have made major steps to improve their financial wellbeing, such as:
26% were designated as having low FICO scores at origination. The average improvement in credit score for those in the "low" category was 73 points.
Since the inception of this program, the tenure and impact of the Key Secured Credit Card program are further enhanced by the positive graduation results. More than 30,900 clients have started or completed their journey through the program, with
For those who entered the program with no FICO score, the average score they show at graduation is 721. Throughout the program's history, those who begin with a FICO score at origination have shown an average increase of 63 points when they graduate1.
Additional Key Secured Credit Card features include:
- While clients build their credit, their Key Secured Credit Card deposit must be kept in a Key Active Saver account, allowing users to build their credit and savings in tandem. The monthly maintenance service charge on the Key Active Saver account is waived for Key Secured Credit Card clients2. In addition, there is a
$0 - Cardholders can opt in to check their FICO score for free anytime3 in online and mobile banking. It's quick, easy and does not impact their credit score.
- Unlike most prepaid or debit cards, the Key Secured Credit Card reports clients' history to credit bureaus, allowing them to show progress.
- With Key's temporary lock security feature, cardholders can easily use online or mobile banking to lock and unlock a misplaced credit card.
For more information on KeyBank's Secured Credit Card, visit https://www.key.com/personal/credit-cards/key-secured-credit-card.jsp
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
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
About KeyCorp
KeyCorp's roots trace back nearly 200 years to
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 1,200 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
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SOURCE KeyBank
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