Does KOHO Build Credit?

If you're looking to build or rebuild your credit score in Canada, you've probably heard about KOHO's credit builder loan.

But does it actually help build credit history?

The answer is yes.

What is KOHO's Credit Builder Loan?

KOHO's credit builder is a dedicated service that helps users establish and improve their credit history. At its core, it's a line of credit (LOC) that reports your payment activity to Equifax.

Here's how it works:

• You get access to a small line of credit starting at $225.

• Monthly cost starts at just $10.

• You can set your own utilization rate.

• KOHO reports all payments as 'on time' to Equifax when you pay as scheduled.

Why KOHO's Approach Different?

Unlike traditional credit cards that can lead to debt spirals, credit builder feature is designed with safety in mind.

You're in control of how much you use, and the low monthly cost makes it accessible to most Canadians.

Key Benefits:

• Lowest cost option - Only $10/month to access $225, versus requiring more collateral for a secured credit card

• Mobile first, instant approval - No need to visit a bank in person

• No long term commitment - Monthly flexibility

Who Should Consider KOHO Credit Builder Loan?

KOHO's credit building tools are particularly valuable for all groups of Canadians:

Students

KOHO offers:

• Build credit history while managing expenses responsibly

• No fee spending account to avoid eating into tight budgets

• Cash back rewards on purchases

• Convenient money transfers for quick payments to family and friends

Trade & Retail Workers

These users benefit from:

• Credit building that works with irregular income patterns

• No judgment on income type or timing

• Flexible credit options that understand seasonal work

Newcomers to Canada

Recent immigrants often struggle to establish Canadian credit history.

KOHO helps by:

• Providing accessible credit building without extensive Canadian financial history

• Offering straightforward application processes

• Supporting multiple languages and cultural backgrounds

How KOHO Credit Builder Works

1. Once you register, you'll get a $225 line of credit without any interest. A line of credit is an account that will appear on your credit report. It’s completely separate from your available KOHO balance.

2. Your subscription automatically renews, so no need to worry about having to do that yourself. Just make sure you have enough money in your KOHO account each month to cover the subscription fee.

3. Each month on your billing date your utilization rate resets to 0%, so you'll need to reset it yourself in the app.

4. It’s best to keep it at 10% or lower. We'll take the amount you set as your utilization rate and report this activity to Equifax. Then we’ll put it back into your line of credit. This process keeps going every month as long as you’re subscribed. You’ll see this as a Credit Building charge in-app!

Additional Credit Builder Features

Rent Reporting

KOHO also offers rent reporting, allowing users to build credit simply by paying their rent through the platform.

This feature:

• Reports rent payments to credit bureaus

• Turns routine rent payments into credit building opportunities

• Requires no extra monthly steps

Is KOHO Credit Builder Loan Worth It?

KOHO Credit Building makes sense if:

• You have limited or damaged credit history

• You want an affordable, low-risk way to build credit

• You prefer mobile-first banking solutions

• You need month-to-month flexibility

It might not be right if:

• You already have access to traditional credit products

• You prefer in-person banking relationships

• You want higher credit limits immediately

Getting Started with KOHO Credit Builder

Ready to start building your credit with KOHO? The process is simple:

1. Download the KOHO app or visit the webpage

2. Sign up for a KOHO account

3. Add the Credit Building feature for $10/month

4. Get instant approval and start building credit immediately

The Bottom Line

Yes, KOHO does build credit history. It does so in an accessible, affordable way that's designed for modern Canadian lifestyles. With instant approval, mobile first design, and flexible monthly commitment.

For just $10 per month, you can start building the credit history that opens doors to better financial products and lower borrowing costs. In a country where good credit is essential for everything from renting an apartment to getting a mortgage.

Whether you're a student just starting out, a newcomer to Canada, or someone looking to rebuild their credit, KOHO's approach puts you in control of your credit building journey.