A strong credit history is one of the cornerstones of financial well-being. Whether you are just starting out on your credit journey or looking to improve your credit score, the Key Secured Credit Card® can help you make progress. This card is specifically designed to assist individuals who may need to build or rebuild their credit, offering a reliable and secure solution to manage your finances responsibly.
In this comprehensive guide, we will walk through everything you need to know about the Key Secured Credit Card. From its annual fees and credit limit determination to the advantages and disadvantages, this article provides all the information necessary for those considering this card as a stepping stone to financial freedom.
Key information about the credit card
How does the annual fee work?
The Key Secured Credit Card comes without an annual fee, which is a major advantage for individuals looking to improve their credit without additional financial burdens. Many credit cards on the market charge an annual fee, especially those that come with added features or rewards. With this card, you don’t have to worry about paying extra to use the service, making it a cost-effective solution for those who need to be mindful of their budget.
How is the credit limit determined?
The credit limit for the Key Secured Credit Card is determined by the amount of the refundable security deposit you provide. Unlike traditional credit cards, where the issuer decides your credit limit based on your creditworthiness, the secured card allows you to choose your limit, starting at $300. This gives you more control over how much credit you want to access.
Advantages of the credit card
- No annual fee: A significant benefit, making the card affordable for people looking to improve their credit without incurring extra costs.
- Refundable security deposit: Your credit line is directly tied to your deposit, providing a clear way to manage and control your finances.
- Credit reporting to bureaus: The card reports to major credit bureaus, which helps build your credit history as long as payments are made on time.
- FICO® Score access: You can easily check your FICO® Score anytime via KeyBank’s online and mobile banking without impacting your score.
- Mastercard® benefits: Enjoy Mastercard® benefits like ID Theft Protection™ and Zero Liability Protection, enhancing security for your transactions.
Standout advantage
A standout feature of the Key Secured Credit Card is its ability to help users transition to an unsecured credit card. Every six months, KeyBank reviews your account to determine if you qualify to graduate from a secured card to an unsecured one.
This is a key differentiator that offers a clear path to improving your credit profile, making this card more than just a temporary solution. It provides long-term growth potential for individuals working on their financial health.
Disadvantages
- High APR: The regular APR is quite high at 28.24%, which can lead to significant interest charges if you carry a balance.
- Security deposit requirement: You must have at least $300 to open the account, which could be a barrier for some individuals.
A standout disadvantage
One major disadvantage of the Key Secured Credit Card is the high APR. While secured credit cards are known for having higher interest rates, the 28.24% APR can quickly become burdensome for cardholders who do not pay off their balance in full each month. It is crucial for users to manage their payments responsibly to avoid falling into a cycle of debt, especially considering the purpose of the card is to help rebuild credit.
Who can apply for this card?
The Key Secured Credit Card is available to individuals who are looking to establish or rebuild their credit. To apply, you must be at least 18 years old and have a valid Social Security number. Since this is a secured card, applicants need to make a refundable deposit, starting at $300, which acts as the credit limit.
Applicants must also have a Key Active Saver account, where the security deposit will be held. This account is crucial to maintaining the card, as the deposit is tied directly to the credit line. Another important factor is that the Key Secured Credit Card is subject to credit approval.
While the approval criteria for secured cards are generally more lenient than unsecured cards, KeyBank still assesses your creditworthiness to ensure you are a suitable candidate. Additionally, the card is not specifically marketed as available to individuals with negative credit histories, so having a clean or improving credit record will increase your chances of approval.
How to apply for the Key Secured Credit Card
For the website
New KeyBank clients or those who prefer an online experience can apply directly through the KeyBank website. The online application form requires basic personal and financial information, including your Social Security number, income details, and the amount you wish to deposit as your security.
It’s important to note that you will also need to open a Key Active Saver account during the application process if you don’t already have one. Once all necessary steps are completed, KeyBank will review your information and notify you of your application status. Online applicants can typically receive a decision within a few days.
Through the app
KeyBank’s mobile app is another convenient option for applying for the Key Secured Credit Card. Similar to the online application process, you’ll need to provide your personal details, including your desired security deposit. The app also allows you to manage your Key Active Saver account once your card is approved.
Using the app streamlines the process, as you can check your application status, track your card usage, and even view your FICO® Score directly from your mobile device. This digital flexibility makes the app a convenient choice for tech-savvy applicants who want to handle their financial transactions on the go.
At the branch
For those who prefer an in-person experience or have specific questions before applying, visiting a KeyBank branch is an excellent option. KeyBank offers personalized service at its branches, where you can sit down with a banker to discuss the Key Secured Credit Card in detail. You can also complete the application process on the spot, making it a great choice for individuals who want to ensure they understand all aspects of the card before committing.
Additionally, KeyBank’s branch staff can help you open the necessary Key Active Saver account and guide you through the deposit process. This face-to-face interaction provides added reassurance and support, making the branch option ideal for first-time card applicants.
