KOHO Credit Building Review 2022

KOHO Credit Building Review 2022

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated September 20, 2022

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 the KOHO Credit Building Program comes in. This handy tool makes credit building as easy as possible and affordable.

Let’s dig deeper to see how this convenient credit building program 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. KOHO is also backed by long-time investors including Drive Capital, the Power Group, and Portag3.

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 the following products:

KOHO Prepaid Mastercard

  • No annual fee
  • 0.5% cash back on eligible purchases
  • Extra cash back at participating retailers
  • Round up your expenditures to the nearest $1, $2, $5, or $10 to help you save every time you spend
  • 1.5% foreign transaction fees
  • Free e-transfers
  • No NSF fees

KOHO Premium Prepaid Mastercard

  • Monthly fee of $9 or an annual fee of $84
  • 2% cash back on groceries, restaurants, and transportation
  • No foreign exchange fees
  • Financial advice
  • Price matching to help you get the lowest price for your purchase
  • 1 free ATM withdrawal/month

KOHO Joint Prepaid Mastercard

  • 0.5% cash back on eligible purchases
  • Extra cash back at select retailers
  • Share finances with a spouse, partner, friend, or family member
  • Round up your expenditures to the nearest $1, $2, $5, or $10 to help you save every time you spend
  • Share savings goals with another person to save up for a specific expense by contributing on a set schedule
  • Notifications sent when money is spent on your card

What Is The KOHO Credit Building Program?

KOHO offers a credit building service called Credit Building. New users can register for this credit building subscription service for $10 a month. To register,  you’ll also need a KOHO Spendable account, which you can sign up for free.

Overview Of The KOHO Credit Building Program Features

Cost$10/ month
Eligibility– Canadian resident
– Age of majority in your province
Credit check?Yes (soft check, no effect to score)
AvailabilityAcross Canada
Program length– 6 months
– Can reapply after 6 months
Special Features– Helps build credit
– Free credit score

How Does The KOHO Credit Building Program Work?

Credit Building by KOHO is a credit-building line of credit. Users need to make on-time payments for 6-months to help build their credit history. The program can be cancelled at any time, users do not need to complete the full 6-months if they do not want to.

All you have to do is make sure that there is $10 in your Spendable account every month to cover the subscription fee (KOHO will automatically withdraw this amount each month).

Each payment made will be reported to one of the credit bureaus in Canada, which is how you can work toward building good credit. Timely bill payments have one of the biggest impacts on credit. 

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

Keep Tabs On Your Credit Score

You can keep tabs on any changes in your credit score using the KOHO mobile app, where you can see your credit score for free. And once the initial 6-month period is over you can reapply for the program if you want to continue to work on improving your credit.

How Much Does The KOHO Credit Building Program Cost?

The program costs $10 per month. There are no other costs involved, you simply need to make sure you have $10 in your Spendable account every month so that KOHO can withdraw your payment and report it to a credit bureau. 

Pros Of The KOHO Credit Building Program

There are several perks to using the KOHO Credit Building Program to help you rebuild your credit scores:

  • Convenient. Simply sign up for the Credit Building feature tool in the KOHO app and forget about it for 6 months. With time you should see your credit score improve. 
  • Affordable. At $10 per month, the KOHO Credit Building Program can easily fit into just about any budget.
  • Track your progress. You can follow the progress you’re making and see how your credit score is doing throughout the 6-month period. 
  • Free credit score. When you sign up for KOHO’s Credit Budilting tool you’ll get your credit score for free.
  • 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 program.
  • Earn cash back. Earn anywhere from 0.5% to 2% cash back on eligible purchases. 

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. The credit building program offered by KOHO is not free, though the $10 monthly subscription fee is extremely affordable. 
  • Missed payments. If you miss any payments, it’s possible your credit score will take a hit.

How To Apply For The KOHO Credit Building Program

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

  1. Subscribe to the Credit Building tool 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 $10 in your Spendable account each month.
  4. KOHO will deduct the $10 subscription fee every month from your Spendable account and report it to a major credit bureau
  5. Use the app to track your credit score and watch it grow

As long as you have at least $10 in your account every month for the subscription fee, there’s nothing left for you to do. KOHO will take care of the rest in the background to help you rebuild your credit score. 

KOHO Credit Building Program FAQs

Does the KOHO Credit Building program require a credit check?

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

Is the KOHO Credit Building program available in Canada?

Yes, KOHO’s Credit Building tool is 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.

How fast can the KOHO Credit Building program improve my credit?

Your credit score can improve within 6 months of using the credit building program.

Final Thoughts

Having a healthy credit profile is an important part of your credit life. And while building up a good credit score can be challenging without some help and know-how, the KOHO Credit Building Program makes the entire process incredibly easy. With minimal effort, you can see a difference in your credit score in just 6 months.

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.

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Save With Loans Canada

Special Offers

You Could Win Up To $5,000

You Could Win Up To $5,000
Expires Soon

Borrow up to $50,000 from Fairstone and be automatically entered to win up to $5,000!*

View Offer
Earn 5% Cash Back With Neo

Earn 5% Cash Back With Neo
No annual fee!

Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.

View Offer
Build Credit With Refresh

Build Credit With Refresh

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $10/Month

Build Credit For $10/Month

With KOHO’s prepaid card you can build a better credit score for just $10/month.

View Offer
Best Personal Loan Provider by Greedy Rates

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.