What is Credit Building?
Credit Builder programs help you create or bulk up your credit history by showing you're consistent with your money management. KOHO's Credit Building offers a safe way to build credit without the risks of traditional credit cards or lenders, helping you achieve the same goal: a stronger credit history.
Why is Credit Building a safe way to build credit history?
Unlike traditional credit cards that can lead to high-interest debt, KOHO’s Credit Building reports your payments to an official credit bureau on your behalf so you don't have to worry about it, making it a safer alternative to traditional credit cards that might tempt you to borrow more than you can afford.
Why use KOHO's credit building?
- Guaranteed approval: Everyone qualifies regardless of their credit scores
- Track progress: Gain insights into your credit
- No interest charges: Only pay a small monthly subscription fee
- Rent Reporting: Report your rent payments to build your credit history even faster
- Credit Report access: Stay on top of your credit report, flag errors, and file disputes, provided by Equifax
Build your credit without over spending
How Credit Building works
No interest
When you sign up, you’ll get a special credit line with no interest.
Build credit
By setting your utilization rate under 10%, and making on-time payments each month, you could help improve your credit score.
Financial Coach
You’ll have access to our in-house Financial Coach to help you out along the way.
Join the KOHO members working on their credit today
Start today, take steps towards your financial goals, and make the most of your savings.
The perfect plan for your needs | |||
|---|---|---|---|
Benefits | |||
| Unlimited cash back on groceries, transportation, food & drinks | 1% | 1.5% | 2% |
| Earn interest | 2.5% | 3.5% | 4% |
| Free Credit Score | |||
| Instant e-Transfers | |||
| No Foreign Transaction Fees | - | ||
| Discount on Credit Building | - | 30% | 50% |
| Personal Phone Support | - | - |
* Get Essential for free! Learn more
**This is an estimate. Actual savings may vary depending on individual spending habits and service usage
Building credit can save you money
A boost to your credit scores can result in lower interest rates and serious savings. Take a look at how good credit scores could help you save nearly $3,000. Let’s assume a loan amount of $15,000 and 12 months of payments.
| Credit Scores | 579 | 740 |
|---|---|---|
| Interest Rate | 47% | 15% |
| Total Interest | $4,086.77 | $1,246.50 |
| Savings | - | $2,840.27 |
FAQS
KOHO gives you an affordable way to make or build your credit history in Canada. There are no deposits, hard credit checks, or applications. And you’re guaranteed approval. Head to your KOHO app and click Credit > Register to get going.
Build credit smartly with KOHO's Credit Building program. Get a dedicated tradeline with no interest. Simply make monthly payments on time to establish credit history that may improve your score. Plus, gain access to our in-house Financial Coach.
Credit builders offer a relatively safer way to build credit as unlike traditional credit products, you don't have to withdraw and use the money to build credit—eliminating the risk of falling into a debt cycle. Instead, consistent monthly payments are reported to credit bureaus, helping you gradually build credit history—without the financial risks that come with traditional credit cards or lenders.
Not at all! A credit builder line of credit is designed to be easy to access. Since there’s no hard credit check, it’s a simple, stress-free way to build your credit history.
They help build your credit history. When you make your payments on time, it shows up as positive payment history - one of the biggest factors in your credit scores.
Credit cards can help, but they often come with high interest rates. KOHO’s Credit Building is a safe and interest-free alternative.
The main difference is that secured lines of credit need collateral—something valuable you own that the lender can take if you don't pay.
Unsecured lines don't need collateral, but they usually have higher interest rates and are harder to get.
Not at all! There's no need to withdraw funds. Simply set your utilization rate (we suggest keeping it under 10%) at the start of each billing cycle. However, you'll have access to the funds whenever you need them. They provide a safety net for unexpected situations.
You’ll receive regular updates through KOHO and can monitor your credit report directly in the app.
You know how making payments on time can positively impact your credit? Well the opposite is true too, missing or late payments could hurt your scores. This is why we do not recommend withdrawing from the line of credit. We are invested in your success.
Yes! Thousands of Canadians have used KOHO’s Credit Building to grow their credit histories safely and securely**.
KOHO's Credit Building tool retrieves your score directly from our trusted partner Equifax, which is one of the major credit reporting bureaus in Canada. Please note that your scores might vary from what you see on other reporting services. This difference can happen because Canada has two major credit bureaus. Each has its own criteria for scoring your credit.
You can reach out to Equifax directly by giving them a call at 1-800-465-7166, or you can also log into your account on Equifax's website
The minimum credit scores you need to buy a home depends on which lender you get your mortgage with. In general, you’ll want scores of at least 620 to get a mortgage with a traditional lender (like a bank). This is according to Loans Canada. The better your credit scores, the more likely you are to get a low-interest rate.
You’ll want credit scores in the mid-600s to qualify to buy a car, according to Borrowell. You might qualify for a car loan with lower scores. But, like for buying a home, the higher your credit scores, the better your chances of getting a good car loan rate.
Reach out to our customer support team and write in #coach before writing in your question.
*Based on users 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 users.
**Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on a variety of factors and outcomes may vary among users.