New Secured Card Helps People Reach Their Financial Goals
Secured credit cards have been increasing in popularity over the last several years, and for good reason. For folks who have no credit history, limited credit history, or a poor credit score, a secured card offers a path toward financial wellness and a healthy credit score.
KeyBank’s new secured credit card offering demonstrates a commitment to assisting those who find themselves in a position where they cannot be approved for a regular, unsecured credit card. “We’re committed to helping consumers make steady progress toward financial wellness, using a holistic approach to support clients’ progress,” says Mitchell L. Kime, head of KeyBank’s credit card division.
The Key Secured Card is a no-annual fee credit card that is designed to help cardholders establish and improve their credit history. But, says Kime, the card does more than just help people rebuild or strengthen their credit score. “Using a secured card is one more way we can help clients understand and manage their money, so they can feel confident about their financial choices.”
How the Key Secured Card is different
Just like a traditional secured credit card, consumers will deposit money as collateral to secure the amount of their credit limit. However, unlike many secured cards, the new Key Secured Card doesn’t have an annual fee. Also, the funds deposited will be placed in a Key Active Saver account, where they can earn interest based on their Financial Wellness score.
The Financial Wellness score is based on each customer’s personal financial activity. Clients can increase their score by putting money into emergency and retirement savings accounts, keeping credit card debt low, and comparing favorably with others in their same demographic. Key Secured Card members simply need to enroll in the KeyBank digital financial wellness tool to participate in this program and earn a higher interest rate on their deposit, which will eventually be returned to them after a period of responsible card use.
KeyBank makes an effort to support low-to-moderate income consumers by aligning with the goals of the $16.5 billion National Community Benefits plan. This plan creates banking products and services to address specific needs in the community. In the case of the Key Secured card, the goal is to help people build good credit—something they can do with a secured credit card from KeyBank or another financial institution.