KOHO Review

Written by Priyanka Correia
Fact-checked by Caitlin Wood

KOHO Review

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KOHO Prepaid Credit Card Review

KOHO is a fin-tech company that provides Canadians with a free reloadable prepaid card that allows you to control and track your spending while still being able to enjoy the perks of having a credit card. Similar to a traditional bank, KOHO provides its users with a product that allows them to make purchases like they would on a debit card and earn cash back like they would with a credit card. This mix of credit and debit card features makes KOHO an innovative and powerful tool for many Canadians. 

What Kind Of Prepaid Cards Does KOHO Offer? 

KOHO’s prepaid credit cards are a hybrid of debit and credit cards, while it allows users to make purchases using their card like a debit card, they also are able to earn cash back rewards like a credit card. Currently, KOHO has 3 types of prepaid cards you can choose from.

KOHO Prepaid Visa Card

The KOHO prepaid Visa card is KOHO’s original card. It has no annual fee and has no transaction fees including cost per transaction, NSF, and e-transfer fees. The only exception is the foreign transaction fees, which will cost you 1.5%. 

With the KOHO prepaid Visa card, you can earn 0.5% cash on all purchases and 5% cash back when you make a purchase with select merchants. To gain additional points, you can boost your earn rate to 1% for 90 days if you refer a friend. 

KOHO Joint Prepaid Card

KOHO Joint prepaid card is meant for those who would like to have a joint account with their partners, spouses, family, or any other person they’d like to share their finances and financial goals with. The joint account helps keep both holders updated on spending with instant notifications and alerts when a purchase is made. Moreover,  you’ll be able to earn 0.5% cash back on all purchases made. 

KOHO Premium Prepaid Card 

With a fee of $9 a month or $84 a year, you can gain access to KOHO’s most prestigious card: the KOHO Premium prepaid card. While this card may have a significant fee, it comes with a number of perks that may be worth the cost. This card provides a higher cash back rate of 2% on frequently bought categories like gas, transit, groceries, and restaurants. All other purchases will earn you 0.5%. 

Moreover, unlike its other two cards, this one comes with no foreign transaction fees, which will help you save around 2.5% for each withdrawal. It also comes with a price-matching feature which can help save you money. This feature credits you the difference in price on items you’ve purchased that have dropped in price within a particular amount of time. 

How Does KOHO Work?

Using a KOHO card is simple. First, you’ll have to create an account by signing up online. Once you have your account set-up you can add money to your card via Interac e-transfer or through automatic payroll deposits. Once you have money in your account you can use your card as you would a debit or credit card. Any purchase you make will earn you 0.5% cash back or 2% on groceries, restaurants, and transportation if you get the premium card. 

KOHOs prepaid card offers a balance between the accessibilities of a debit card and the rewards of a credit card. Moreover, with KOHO you can use its app to track your spendings, check your balance, and set limits to your spendings. 

How Much Does It Cost To Open An Account With KOHO?

Depending on the type of prepaid card you choose it can cost you anywhere between 0 and 9$ a month. While KOHO’s prepaid visa card and joint prepaid card are free, KOHO’s premium prepaid card costs $9 a month. However, if you choose to pay for a year, you’ll get a discount of $24, which equates to a yearly fee of $84. 

Pros and Cons Of Using KOHO

When you sign-up for KOHOs prepaid visa card, you’ll notice the pros far outweigh the cons. Below, we’ve listed the benefits and drawbacks of using KOHOs prepaid visa card. 

Click here to check out more pros and cons on using a prepaid credit card. 

KOHO Credit Builder

If you have trouble accessing affordable credit due to bad credit, KOHO can help you build your credit through their credit building program. Their credit building program is a $7/month subscription service that you can renew every 6 months depending on your credit goals. When you subscribe, KOHO will provide you with dedicated funds which they will deduct the $7 fee from each month and report these “payments” to a credit bureau. KOHO takes care of the rest so you can focus on your credit building goals. 

Moreover, when you subscribe to KOHO’s credit building services, you’ll have access to their   Credit Building page on the KOHO app. This page allows you to track the changes to your credit score each month. If you’d like to take advantage of this low-cost credit building service, simply register through the KOHO app to get started.

How Do You Open An Account With KOHO

To create an account with KOHO, you’ll have to fill out an online application with a few details. It’s a 5 step process that’ll take you as little as 5 minutes to complete.

• Step 1 – Enter your email address and create a password for your account.
• Step 2 – Provide some basic personal information including your name, job, phone number, and address. 
• Step 3 –  Select one of the three available colour schemes for your card.  
• Step 4 – Re-confirm your address, so KOHO can mail you your card. 
• Step 5 – Once you’ve completed your online application, KOHO will send you a link to their app which you must download and login in to in order to complete your accounts set-up. 

When you fill out your online application, make sure you have a copy of any 2 of the following documents to verify your identity. 

• Driver’s License
• Passport
• Work permit
• Utility bill
• Bank statement

Card Product Details Overview

KOHO Prepaid Cards Are Best Suited For

KOHO prepaid visa cards aren’t just an alternative to those having a hard time securing a regular credit card, but it’s also meant for those who want to better control their spending. The KOHO prepaid visa card comes with budgeting and tracking tools on their app that you can use to limit your spending and alert you on all your purchases. Moreover, students, new credit users and bad credit individuals can enjoy cash back rewards without the high fees that typically come with a regular credit card. 

Bottom Line

While there are many prepaid visa cards available on the market, the KOHO Prepaid Visa card comes with a number of perks including the ability to earn cash back, budget and track spending. If you’re in the market for a prepaid credit card, check out KOHO, it literally costs you nothing.