Keychain:
It has two level encryption options
But when the device is jailbroken its not safe too.
oAuth:
Eventhough you store credentials in server you'll have to save the OAuth TOKEN in client side there is no place better than keychain to store it in client side.So now comes possibility of extracting the TOKEN on jailbroken device.
As far as I know in most apps they use one of these approaches.
If you need those data to be very very secure.
Suggestions:
Store OAuth token in server not in client
Store the Encrypted Credentials in Keychain and store the encryption key in server.This approach would be easy for you since you said adopting OAuth is hard for you.
Note:
There are some open source libraries available which detects if the device you run or app is cracked if so you can take action like deactivating TOKEN,deleting critical resources,locking app etc.