KeyBank's Secured Card Graduates 48,000 Clients, but Costs Matter

KeyBank says 48,055 clients have graduated from its secured credit card program since the product launched in 2019. The bank's first-half 2026 class included more than 4,600 customers, offering a measurable view of how the program moves thin-file and lower-score borrowers toward unsecured credit.

Among the first-half graduates, 74% entered without a FICO score and 26% started with a low score. Customers in the second group improved by an average of 86 points, while those without a prior score graduated with an average score of 724. Sixty-eight percent completed the program within 12 months and 85% within 24 months.

The longer history is slightly different because it covers all graduates since 2019. Across that population, 71% began without a score and 29% entered with a low score. The average improvement for clients who started with a score was 70 points, and those who started without one averaged 722 at graduation. Sixty percent graduated within a year and 88% within two years.

Those measures should not be mixed. The stronger first-half 2026 figures describe a recent cohort, while the lower averages cover the full program. KeyBank also says the analysis is based on historical internal data and that individual outcomes are not guaranteed.

The product requires a refundable deposit from $300 to $5,000 in a linked Key Active Saver account. The deposit sets the credit limit and remains pledged while the secured card is open. The card charges no annual fee, but KeyBank's current product page lists a 26.74% variable purchase APR and a late-payment fee of as much as $40. When a customer graduates, the card becomes unsecured and the deposit is released.

Program changes may also increase the commercial value to KeyCorp. Since a credit-line increase feature was introduced in 2024, 10,021 graduates have received more capacity, including 2,052 in the first half of 2026. A campaign begun in June 2025 has invited more than 6,100 eligible graduates to apply for traditional KeyBank cards.

For investors, the program is better viewed as evidence of customer acquisition and progression than as a stand-alone earnings catalyst. KeyCorp had about $193 billion in assets at September 30, so the 48,055 graduates are meaningful operationally but small relative to the group. The important follow-up questions are retention, credit performance and profitability after graduation, none of which the announcement disclosed.