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Without a healthy credit profile, you may find it difficult to secure any number of affordable credit and loan products, including mortgages and car loans. For this reason, making an effort to ensure your credit is strong is crucial, but it can be difficult to do so without the proper tools. 

That’s where KOHO’s Credit Building Programs come in. These programs make credit building easy and affordable.

Let’s dig deeper to see how these Credit Building Programs can help you improve your credit history. 

Who Is KOHO?

KOHO is a Toronto-based fintech company that offers banking services and products, including their mobile app and prepaid credit cards. The company is not a bank itself but rather has partnered with Peoples Trust to provide consumers with secure banking products that can be used across the globe.

The company was developed with the goal of providing Canadians with convenient financial products. More importantly, KOHO’s mission is to help Canadians establish and build healthy credit that will open the door to more financial products in the future.

KOHO currently offers three full-service accounts.

KOHO Essential Account

The Essential Account is KOHO’s entry-level account. Account holders can earn interest on their account balance and use their prepaid credit card to make purchases and earn cash back rewards.

  • Has a monthly fee of $4 or an annual fee of $48
    • 0$ if you set up a direct deposit or contribute $1000 per month
  • 1% cash back on groceries, (gas, parking, rideshare apps, etc.), and eating and drinking
  • Up to 50% extra cash back with select merchants
  • Earn 5% saving interest on the entire balance in your KOHO account
  • Free e-transfers
  • No NSF fees
  • Credit Building for $10/month
  • Flexible Credit Building also available
  • Get your credit score for free in-app

KOHO Extra Account

The Extra Account is KOHO’s second most expensive account and comes with additional perks.

  • Has a monthly fee of $9 or an annual fee of $84
  • 1.5% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
  • 0.25% cash back on all other categories
  • Up to 50% extra cash back with select KOHO partners
  • Earn 5% saving interest on the entire balance in your KOHO account
  • No foreign transaction fees
  • 1 Free International ATM withdrawal each month
  • Credit Building for $7/month
  • Flexible Credit Building also available
  • Get your credit score for free in-app

KOHO Everything Account

The Everything Account is KOHO’s most expensive account, but it also comes with the most perks.

  • Has a monthly fee of $19
  • 2% cash back on groceries, transportation (gas, parking, rideshare apps, etc.), and eating and drinking
  • 0.50% cash back on all other categories
  • Up to 50% extra cash back with select KOHO partners
  • Earn 5% saving interest on the entire balance in your KOHO account
  • No foreign transaction fees
  • 1 Free International ATM withdrawal each month
  • Discounted Credit Building for $5/month
  • Flexible Credit Building also available
  • Get your credit score for free in-app

What Are The KOHO Credit Building Programs?

KOHO offers two Credit Building Programs, Credit Building and Flexible Credit Building. New users can register for these Credit Building Programs in their KOHO app. Credit Building has a monthly fee of $5, $7, or $10, depending on the account they have. While Flexible Credit Building requires users to provide between $30 and $500 of security.

Overview Of The KOHO Credit Building Program Features

Credit BuildingFlexible Credit Building
Cost– KOHO Essential: $10/month
– KOHO Extra: $7/month
– KOHO Everything: $5/month
– $30 to $500 security deposit
– $5 monthly service fee
Eligibility– Active KOHO account
– Canadian resident
– Age of majority in your province
– Active KOHO account
– Canadian resident
– Age of majority in your province
Credit check?Yes (soft check, no effect to score)Yes (soft check, no effect to score)
AvailabilityAcross CanadaAcross Canada

KOHO Credit Building

KOHO Credit Building is a credit-building line of credit. Users cannot access any money from the line of credit. Instead, they pay a monthly subscription fee that is reported to one of the credit bureaus in Canada. This is what can help build a healthy credit history.

Users can stay opted in for as many months as they want. KOHO recommends at least 3 months for the best results.

All you have to do is make sure that there is enough money in your account every month to cover the subscription fee (KOHO will automatically withdraw this amount each month).

Upon registering for the program, KOHO will conduct a “soft inquiry” of your credit report, which does not affect your credit score.

KOHO Flexible Credit Building

On the other hand, KOHO Flexible Credit Building is a secured line of credit. Users need to provide between $30 and $500 to act as security for the line of credit. This money needs to be put aside within your KOHO account. Users must also pay a $5 monthly service fee.

Once the line of credit is active, you can make purchases with the line of credit and repay what you owe at the end of the month. These payments are then reported to one of Canada’s credit bureaus and this is what can help build a healthy credit history.

Nyble

How Much Does KOHO Credit Building Cost?

The Credit Building Program costs $5, $7, or $10 per month, depending on the account you have. There are no other costs involved, you simply need to make sure you have the money in your account every month so that KOHO can withdraw your payment and report it to a credit bureau. 

While the Flexible Credit Building Program requires the user to provide between $30 and $500 to act as security and pay a $5 monthly service fee.

Pros Of The KOHO Credit Building Program

There are several perks to using either (or both!) of the KOHO Credit Building Programs to help you build a healthy credit history.

  • Convenient. Simply sign up for Credit Building or Flexible Credit Building in the KOHO app. 
  • Affordable. At $5, $7, or $10 per month, the KOHO Credit Building Program can easily fit into just about any budget. The Flexible Credit Building has a $5 monthly fee and lets you choose how much security you provide so you can choose whatever works for your budget.
  • Track your progress. You can follow the progress you’re making and see how your credit score is doing
  • No hard credit check. Since KOHO does not perform a “hard inquiry” on your credit report, there will be no negative impact on your credit score when you apply for the Credit Building Programs.
  • Earn cash back. Earn up to 2% cash back on groceries, transportation, food, and drink. And up to 50% extra cashback from select merchants.

Cons Of The KOHO Credit Building Program

Before you apply for a KOHO card and the Credit Building Program, there are a few drawbacks to consider:

  • Not free. Both the Credit Building and Flexible Credit Building programs offered by KOHO are not free. Both come with a manageable cost.
  • Missed payments. If you miss any payments, your credit score may take a hit.

How To Apply For The KOHO Credit Building Program

Applying for both the KOHO Credit Building Program and the KOHO Flexible Credit Building Program is easy. Just follow these steps:

  1. Subscribe to either or both programs in your account on the KOHO app.
  2. KOHO will obtain your credit score through a soft check after you’ve signed up.
  3. Make sure there is enough money in your account every month to cover either your subscription fee or your line of credit payment.
  4. KOHO will deduct the subscription fee or line of credit payment every month from your account and report it to a major credit bureau
  5. Use the app to track your credit score and watch it grow

KOHO Credit Building Program FAQs

Do the KOHO Credit Building Programs require a credit check?

Yes, but it’s a “soft” credit check, which means it won’t impact your credit score. 

Are the KOHO Credit Building Programs available in Canada?

Yes, KOHO’s Credit Building and KOHO Flexible Credit Building are available across Canada.

Does KOHO report to both credit bureaus?

Every repayment made will be reported to at least one major credit bureau in Canada.

Final Thoughts

Having a healthy credit profile is an important part of your credit life. And while building a good credit score can be challenging without some help and know-how, KOHO Credit Building Programs can make the entire process incredibly easy. With minimal effort and cost, you can work toward building a healthy credit history for yourself.

Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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