How Does KOHO Credit Building Work?

KOHO Credit Building is a feature designed to help you build your credit history by reporting your payment activity to Equifax through a dedicated line of credit.

When you sign up, you'll receive a $225 line of credit that is reported to Equifax every month. A line of credit is a type of credit account that allows you to borrow and repay funds over time.

How is Credit Building different from a secured credit card?

Unlike a secured credit card, Credit Building:

• Doesn't require a large security deposit.

• Doesn't charge interest.

• Isn't a credit card.

• Uses a dedicated line of credit specifically designed for building credit.

• Reports your payment activity to Equifax every month.

If I already have good credit, is Credit Building still useful?

Yes. Even if you already have good credit, Credit Building may still help by:

• Adding a line of credit to your credit mix.

• Contributing additional positive payment history.

• Supporting your overall credit profile over time.

Does Credit Building affect my credit utilization ratio?

Credit utilization is the percentage of available credit you're using. For example, if you use $2.25 of your $225 line of credit, your utilization rate is 1%.

Unlike a credit card, Credit Building is specifically designed to help you manage your reported utilization. You choose the utilization amount you'd like reported each month directly in the app.

How do I sign up?

To be eligible, you must:

• Have a fully verified KOHO account.

• Have enough funds available in your KOHO account to cover the subscription fee (excluding funds in your Vault).

To sign up:

1. Open the KOHO app.

2. Tap Credit in the bottom navigation bar.

3. Select Register to build credit history.

4. Follow the prompts to complete your registration.

🎉 Once you're enrolled, you'll be on your way to building your credit history.

How does Credit Building work?

When you subscribe to Credit Building:

1. You'll receive a $225 line of credit with no interest charges. This line of credit is separate from your Spendable balance and appears on your credit report.

2. Your subscription automatically renews, so there's nothing you need to do each month other than ensure you have enough funds available to cover your subscription fee.

3. On each billing date, your utilization rate resets to 0% and you'll need to select a new utilization amount in the app.

For optimal results, we recommend keeping your utilization at 1% or lower.

Each month, we'll report your selected utilization amount and payment activity to Equifax. Once reported, the amount is automatically returned to your available line of credit, and the process repeats every month while your subscription remains active.

How much does Credit Building cost?

The cost of Credit Building depends on your KOHO plan:

• Essential: Standard pricing

• Extra: 30% discount

• Everything: 50% discount

For current pricing, open the KOHO app and navigate to the Credit tab.

Will Credit Building affect my credit score?

Opening any new credit account, including Credit Building, may cause a small temporary change to your credit score. Over time, making payments on time and maintaining a low utilization rate can help build positive credit history.

To avoid missed payments, make sure you have enough funds in your KOHO account to cover your subscription fee and any outstanding withdrawals.

It's also important to remember that factors outside of KOHO can impact your credit score. Missed payments on loans, credit cards, or other credit products, applying for multiple credit products in a short period of time, or carrying unpaid debt may all affect your credit profile.

💡 Use the KOHO app to monitor your Credit Building activity, credit score, and credit report regularly. Keeping track of your progress can help you stay on top of your credit health, make adjustments when needed, and maintain a positive credit profile over time.

What other benefits do I get with Credit Building?

Credit Building includes access to:

Financial Coaching

You can connect with our Financial Coach directly in the KOHO app by opening a support conversation, asking your question, and including #coach at the end of your message.

Our Financial Coach can help with:

• Budgeting

• Saving strategies

• Building healthy financial habits

Credit Score & Report

You'll also have access to your Equifax Credit Report, allowing you to track your credit score, monitor your credit history, and follow your progress over time.