In today’s financial landscape, establishing and maintaining a strong credit history is crucial. The Key Secured Credit Card from KeyBank is designed for individuals looking to either build their credit from scratch or improve their existing credit scores.

This card allows users to make progress on their financial journey while enjoying several key benefits that make it an appealing choice. With features like no annual fee, the potential to graduate to an unsecured credit card, and an associated savings account, the Key Secured Credit Card serves as a stepping stone toward financial wellness.

Understanding how secured credit cards work is essential for anyone looking to enhance their credit profile. The Key Secured Credit Card requires a refundable security deposit, which not only secures your credit line but also fosters a saving habit. This dual benefit of saving while building credit makes the card particularly attractive to those who may be new to credit or seeking to improve their score.

Key features of the Key Secured Credit Card

How does the annual fee work?

One of the standout features of the Key Secured Credit Card is its no annual fee policy. This means cardholders can focus on building their credit without worrying about incurring additional costs. For many credit cards, annual fees can add up over time, making it more challenging to maintain a positive financial trajectory.

In the case of the Key Secured Credit Card, not only is there no annual fee, but the cardholder’s monthly maintenance charge for the associated Key Active Saver account is also waived as long as the secured credit card remains open. This approach allows users to save money while they work on their credit.

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. Cardholders must make a minimum deposit of $300, which will serve as their credit limit. This means the limit is directly controlled by the cardholder’s choice of deposit, up to a maximum of $5,000.

This structure contrasts with traditional credit cards, where limits are determined by factors such as income, credit score, and overall creditworthiness. For individuals opting for a secured credit card, the deposit provides a level of reassurance for both the bank and the cardholder, as the bank retains the deposit as collateral.

Advantages of the Key Secured Credit Card

The Key Secured Credit Card offers several advantages that cater to individuals looking to enhance their financial situation. Here are some notable benefits:

• No Annual Fee: Enjoy the freedom of building credit without incurring annual charges.
• Refundable Security Deposit: The security deposit not only secures the card but also acts as a savings tool, allowing you to grow your funds.
• Credit Reporting: Unlike prepaid cards, this secured credit card reports your payment history to major credit bureaus, helping you build your credit profile effectively.
• Path to Unsecured Credit: KeyBank reviews your account every six months, providing the opportunity to graduate to an unsecured credit card based on your creditworthiness.
• Robust Security Features: The card comes with Mastercard’s security features, including ID Theft Protection™ and Zero Liability Protection, ensuring that you are covered against unauthorized transactions.

A Standout Advantage: Credit Reporting

The ability to build credit through responsible use of the Key Secured Credit Card is its most significant advantage. Each month, KeyBank reports your payment activity to the major credit bureaus.

This process allows cardholders to establish or improve their credit score over time. For those who may be new to credit or have previously struggled with it, this feature can pave the way to better loan terms, lower interest rates, and a broader range of financial products in the future.

Disadvantages of the Key Secured Credit Card

While the Key Secured Credit Card has numerous benefits, it also has some drawbacks that potential users should consider:

• High Regular APR: The regular APR is set at 27.74%, which can be quite steep if the balance is not paid in full each month.
• Late Payment Fees: If you miss a payment, the late fee can be as high as $40, potentially impacting your credit score.
• Security Deposit Requirement: The necessity of a security deposit can be a barrier for some individuals who may not have the funds available to open the account.
• Limited Initial Credit Limit: The starting credit limit is determined by the security deposit, which may not meet the needs of all users.

A Notable disadvantage: High APR

One of the most concerning aspects of the Key Secured Credit Card is its high regular APR of 27.74%. This rate can become burdensome for users who carry a balance from month to month.

If cardholders do not manage their spending wisely and fail to pay off their balances in full, the interest charges can accumulate quickly, negating some of the benefits gained from building credit. This factor makes it crucial for users to be disciplined in their financial habits and prioritize timely payments.

Who is eligible to Apply for the Key Secured Credit Card?

Understanding the eligibility criteria for the Key Secured Credit Card is essential before applying. Here are the primary requirements:

• Age: Applicants must be at least 18 years old to apply for a credit card.
• Income: While there is no specified minimum income requirement, the bank will evaluate your financial situation as part of the application process.
• Credit Status: The Key Secured Credit Card is available to those with limited or poor credit history, making it accessible for those looking to improve their scores.
• Savings Account: Applicants must open a Key Active Saver account and make the necessary security deposit, which is equal to the credit limit desired.
• Credit Approval: The application is subject to credit approval, ensuring that the applicant meets the bank’s criteria for a secured card.

How to apply for the Key Secured Credit Card

Through the Website

To apply online, simply visit the KeyBank website. You will need to provide personal information, including your Social Security number, income details, and the amount you wish to deposit as security. If you are new to KeyBank, you may need to set up an account, which can typically be done during the application process.

Via the Mobile App

If you’re already a KeyBank client, you can apply through the KeyBank mobile app. Log in to your account, navigate to the credit card section, and follow the prompts to complete your application. Make sure to have your security deposit ready for transfer.

In a Branch/Agency

For those who prefer face-to-face interaction, visiting a KeyBank branch is an excellent option. You can schedule an appointment with a banker who can guide you through the application process, answer any questions, and assist with the necessary documentation.