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KOHO Credit Building Review 2026

(5/5)

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Updated On: October 21, 2026

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Without a healthy credit history, it can be hard to qualify for affordable credit products like mortgages, car loans, and credit cards. Building that history takes time and on-time payments, and it can be tough to get started if you have bad credit or no credit at all.

That's where KOHO's Credit Building comes in. KOHO offers two ways to build your credit history, right from the KOHO app. In this review, we break down how Credit Building and Secured Credit Building work, what they cost on each KOHO plan, and who they're best for.

Key Points

KOHO offers two ways to build your credit history: Credit Building, a hands-off $225 line of credit that KOHO makes the payments on for you, and Secured Credit Building, a line of credit backed by your own deposit. You sign up for both in the KOHO app.
Credit Building costs $10 a month on the free Core plan, $7 a month on Extra (30% off), and $5 a month on Everything (50% off).
Secured Credit Building needs a deposit of $30 to $500, which becomes your line of credit.
There's no hard credit check, and your payments are reported to Equifax and TransUnion to help build your credit history.
KOHO members have seen their credit scores go up by an average of 31+ points in just 4 months*.

What Is KOHO?

KOHO is a Canada-based financial technology company. With its prepaid Mastercard and easy-to-use app, Canadians can spend, save, and build their credit history all in one place. Your KOHO Mastercard® Prepaid card is issued by KOHO Financial Inc., and once you opt in to Earn Interest, up to $100,000 of your money is eligible for CDIC protection.

To use Credit Building, you need a KOHO account. KOHO offers three plans: Core, which is free, and Extra and Everything, which have a monthly fee and a 30-day free trial. The plan you choose decides how much you pay for Credit Building. For a full breakdown of each plan, read our KOHO review.

What Is KOHO Credit Building?

KOHO offers two ways to build your credit history: Credit Building and Secured Credit Building. Both report to Equifax and TransUnion, and they work together, so you can sign up for either one or both in the KOHO app. The main difference is how hands-on you want to be:

Credit Building is hands-off. KOHO opens a $225 line of credit in your name and makes the monthly payments on your behalf, so you don't need to make any purchases or take on debt.
Secured Credit Building puts you in control. You use your own money as a deposit of $30 to $500, which becomes a line of credit that you spend from and repay each month.

The Two Options Side By Side

	Credit BuildingHands-off	Secured Credit BuildingYou're in control
Line Of Credit	$225Unsecured	$30–$500Backed by your own deposit
Cost	$5–$10per month, depending on your plan	Check the KOHO appfor the current monthly fee
How It Works	KOHO makes the payments for you	You spend and repay each month
Interest	None	None
Credit Check	Soft check onlyNo effect on your score	Soft check onlyNo effect on your score
Reports To	Equifax and TransUnion	Equifax and TransUnion
Available In Quebec	Yes	Yes

How Credit Building Works

Credit Building is the hands-off option. KOHO opens a $225 line of credit in your name, with no interest, and makes the payments for you. The goal isn't to borrow money. It's to build a positive payment history. Here's how it works:

KOHO opens your line of credit. It's separate from your Spendable balance and shows up on your credit report.

You pick your utilization. Each month, you choose how much of your line of credit to use in the app. KOHO recommends 1% or lower, which is about $2.25.

KOHO reports to Equifax and TransUnion. Your utilization and payment activity are reported, then the amount goes back to your available credit.

It starts again. On each billing date, your utilization resets to 0%, and you pick a new amount.

Good To Know

Your subscription renews automatically, and you can cancel anytime.
Keep enough money in your Spendable balance to cover the monthly fee. Money you've moved into savings doesn't count.
You also get access to your Equifax credit report in the app, plus financial coaching for help with budgeting and saving.

How Secured Credit Building Works

KOHO Secured Credit Building lets you build your credit history with your own money. Here's how it works:

Make your deposit. You deposit $30 to $500, which becomes a secured line of credit.

Use your line of credit. You move money from your line of credit to your Spendable balance to use. KOHO suggests staying within 10% of your deposit.

Repay on your billing date. KOHO automatically moves the money from your KOHO account back into your secured line of credit. Just make sure the money is available in your Spendable balance.

KOHO reports your activity. Your activity is reported to Equifax and TransUnion, which can help you build a positive credit history.

Secured Credit Building is a good fit if you want complete control over building your credit and have the money for a deposit. You can use it on its own or together with Credit Building.

Good To Know

Money you move out is paid back automatically on your billing date, or you can repay it early.
You can change your deposit anytime in the app.
Missed payments can hurt your credit history.
You can cancel anytime, and any unused deposit is returned to you.

Could It Hurt Your Credit Score?

Opening any new credit account, including Credit Building, may cause a small, temporary change to your credit score. That's common with all credit products. Over time, making your payments on time and keeping your utilization low can help you build a positive credit history.

Warning: Missed Payments Can Hurt Your Credit

The biggest risk is missing a payment. Make sure you have enough money in your KOHO account to cover your subscription fee and any outstanding withdrawals. Keep in mind that things outside of KOHO, like missed payments on other loans or credit cards, or applying for a lot of credit in a short time, can also affect your credit.

How Much Will You Pay?

Credit Building costs $5 to $10 a month, depending on your KOHO plan. The paid plans get a discount on Credit Building, but they also have their own monthly fee, so it's worth looking at your total cost:

Swipe to see all plans →

KOHO Plan	Plan Fee	Credit Building	Total Per Month
CoreLowest cost	$0/month	$10/month	$10/month
Extra	$18/month	$7/month30% off	$25/month
Everything	$22/month	$5/month50% off	$27/month

If Credit Building is the main reason you're signing up, Core is the cheapest way to get it. Extra and Everything only make sense if you'll also use their other perks, like higher cash back¹, higher interest², and no foreign transaction fees. You can try either paid plan free for 30 days.

Secured Credit Building needs a security deposit of $30 to $500 in your KOHO account. Check the KOHO app for its current monthly fee.

What We Like And What We Don't

There are several perks to using either (or both) of KOHO's credit-building products, but there are also a few drawbacks to keep in mind.

What We Like

Hands-off: With Credit Building, KOHO makes the monthly payments on your behalf, and your subscription renews automatically.
Affordable: Credit Building costs $5 to $10 a month, and Secured Credit Building lets you choose how much to deposit.
No hard credit check: KOHO only does a soft inquiry, so signing up doesn't affect your credit score.
No deposit needed for Credit Building: You only pay the monthly fee.
No interest: Neither line of credit charges interest.
Track your progress: Credit Building includes access to your Equifax credit report and score in the app, plus financial coaching.
Earn cash back: Your KOHO card earns up to 2% cash back¹ on groceries, transportation, and food and drink, depending on your plan.

What We Don't

Monthly fee: Credit Building costs $5 to $10 a month, even on the free Core plan.
Missed payments: If your Spendable balance doesn't have enough money to cover a payment, your credit score may take a hit. Money you've moved into savings doesn't count.
Small line of credit: Credit Building's line of credit is capped at $225 for now.

How To Get Started

Signing up for Credit Building or Secured Credit Building only takes a few minutes. Just follow these steps:

Open a KOHO account. Download the KOHO app and sign up. Use code LOANSCANADA to get $40 free when you add funds to your account.

Choose your plan. Start with the free Core plan, or try Extra or Everything free for 30 days to get a discount on Credit Building.

Sign up in the app. Subscribe to Credit Building, Secured Credit Building, or both. KOHO does a soft credit check, which doesn't affect your score.

Keep funds in your account. Make sure there's enough money in your account each month to cover your Credit Building fee or your line of credit payment.

KOHO reports your payments. KOHO takes your payment automatically each month and reports it to Equifax and TransUnion.

Track your progress. Check your credit score for free in the KOHO app.

Ready To Start Building Your Credit History?

Use code LOANSCANADA when you sign up for a KOHO account and get $40 free when you add funds to your account.

Open Your Account

Who Should Use It?

People with no credit history: If you've never had a credit product, Credit Building gives you a simple way to start a payment history.
People rebuilding after credit problems: On-time payments are one of the most important parts of your credit history, and Credit Building makes them automatic.
Newcomers to Canada: You can open a KOHO account online and start building a Canadian credit history right away.
People who can't get approved for a credit card: There's no hard credit check, and Credit Building doesn't need a deposit.

Is KOHO Credit Building Worth It?

Building a good credit history can be hard without the right tools, and KOHO makes it simple. With Credit Building, KOHO opens a $225 line of credit and makes the payments for you, with no hard credit check, no deposit, and no interest. If you'd rather stay in control, Secured Credit Building lets you build credit with your own deposit.

If Credit Building is all you want, the free Core plan is the cheapest way to get it, at $10 a month. If you'll also use KOHO for everyday spending and saving, Everything cuts Credit Building to $5 a month and adds higher cash back¹ and interest², which can more than cover the plan fee. Whichever plan you pick, remember that Credit Building only helps if you keep making your payments on time.

Your Questions, Answered

Does KOHO Credit Building require a credit check?

Yes, but it's a soft credit check, which means it won't affect your credit score.

Is KOHO Credit Building available across Canada?

Yes. Credit Building and Secured Credit Building are available across Canada, including Quebec.

Which credit bureau does KOHO report to?

KOHO reports your Credit Building and Secured Credit Building payments to both of Canada's major credit bureaus, Equifax and TransUnion, for eligible accounts.

Is KOHO Credit Building free?

No. Credit Building costs $10 a month on the free Core plan, $7 a month on Extra, and $5 a month on Everything. Secured Credit Building also needs a $30 to $500 security deposit.

How long does it take to build credit with KOHO?

Building credit takes time, and there are no instant results. Making your payments on time, month after month, matters most. KOHO members have seen their credit scores go up by an average of 31+ points in just 4 months*.

Can I use Credit Building and Secured Credit Building at the same time?

Yes. The two work together, so you can use either one on its own or sign up for both.

How big is the KOHO Credit Building line of credit?

Credit Building gives you a $225 line of credit with no interest. For now, you can't get a higher limit. With Secured Credit Building, your line of credit is the amount you deposit, from $30 to $500.

What is utilization, and how much should I use?

Utilization is how much of your available credit you're using. With Credit Building, you choose the amount reported each month in the app. KOHO recommends keeping it at 1% or lower, which is about $2.25 of your $225 line of credit. With Secured Credit Building, KOHO suggests staying within 10% of your deposit.

Can I cancel KOHO Credit Building?

Yes. Your subscription renews automatically each month, and you can cancel anytime.

Is Credit Building useful if I already have good credit?

It can be. KOHO says Credit Building may still help by adding a line of credit to your credit mix and adding more positive payment history over time.

Does the KOHO prepaid card build credit?

No. Your KOHO prepaid Mastercard uses your own money, so purchases aren't reported to the credit bureaus. To build your credit history with KOHO, you need Credit Building or Secured Credit Building.

*_{Based on members with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among members.}

¹ _{Actual Cash Back may vary depending on your KOHO Account plan or merchant. Cash back rate and merchants subject to change. Terms and Conditions apply.}

² _{Actual interest may vary depending on your KOHO Account plan. Interest Rate is subject to change without prior notice. Interest is per annum calculated daily but paid monthly. Terms and Conditions apply.}

_{Plans, prices and benefits are current as of October 2026 and subject to change.}

_Sources

KOHO Help Centre, "How does Credit Building work?" (updated June 2026)
KOHO Help Centre, "What’s the difference between Credit Building and Secured Credit Building?" (updated January 2026)
KOHO Help Centre, "What is Secured Credit Building" (updated May 2026)
KOHO Help Centre, "Can this negatively impact my credit?" (updated February 2026)
KOHO Help Centre, "How long will my subscription to Credit Building last?" (updated February 2026)
KOHO Help Centre, "How does this benefit my credit?" (updated August 2026)
KOHO Help Centre, "When should I repay the money withdrawn from my Secured Credit Building?" (updated April 2026)
KOHO Help Centre, "Can I change my available Credit Limit amount?" (updated April 2026)
KOHO Help Centre, "What happens if I miss a payment for my Secured Credit Building?" (updated August 2026)
KOHO Help Centre, "How do I cancel Secured Credit Building?" (updated August 2026)
KOHO plan and pricing information for affiliates (September 2026)