Is KOHO debit or credit?

Hey there! If you've landed on this page, you're probably wondering whether KOHO is a debit card or a credit card. It's a totally fair question and honestly, we get asked this a lot!

The short answer? We offer a prepaid Mastercard – which means we're kind of in our own category.

But let's break this down in simple terms so you know exactly what you're getting with us.

Rounding it up

• KOHO offers a prepaid Mastercard, not a traditional debit or credit card

• You can only spend money you've already loaded onto your KOHO card (no debt!)

• It works like a debit card (your own money) but with Mastercard acceptance worldwide

• You get all the perks without the credit card debt or traditional banking fees

• Perfect for anyone looking to spend smarter and save faster

So, what exactly is KOHO?

Think of KOHO as your friendly financial sidekick! We're a prepaid Mastercard that combines the best parts of both debit and credit cards, without the downsides.

Here's how we're different from traditional cards.

Unlike a debit card:

• We're not tied to a traditional chequing account at a big bank

• You get way cooler features (cash back and high interest savings!)

• No monthly fees or minimum balance requirements

Unlike a credit card:

• You can't go into debt because you're only spending money you've loaded onto the card

• No interest charges or credit applications

• No risk of overspending beyond your means

How does KOHO work?

It's actually pretty simple! You load money onto your KOHO card, and then you can spend that money anywhere Mastercard is accepted. That means virtually everywhere – online, in stores, even when you're traveling!

The cool part? You earn cashback on every single purchase. We're talking 1% unlimited cashback on groceries, transportation, food & drinks, plus up to 6.5% cashback with our preferred partners. Try getting that with your regular bank debit card!

Why we chose the prepaid route

Here's the thing – we wanted to create something that helps you spend smarter, not harder.

Traditional credit cards can be a slippery slope. One month you're buying a coffee, the next you're staring at a bill that makes your heart race. With KOHO, that's literally impossible. You can only spend what you have, which means you're always in control.

But we didn't want you to miss out on the convenience that comes with credit cards. That's why we partnered with Mastercard – so you get worldwide acceptance without the debt trap.

The KOHO difference: more than just a card

When you choose KOHO, you're not just getting a piece of plastic. You're getting:

💰 High Interest Spending Account

Unlike most chequing accounts that give you basically zero interest, our spending account offers up to 4% interest. Your money actually grows while it sits there!

📱 Digital First Experience

No tellers, no waiting in line, no bank branches. Everything happens right in our app, which means banking that actually fits into your life.

You can download our app on the Google Play Store or App Store

🎯 Smart Spending Tools

Track your spending, set savings goals, and get insights into where your money goes. It's like having a financial coach in your pocket.

🛡️ All the Security, None of the Stress

You get all the fraud protection and security features of a major credit card, without the risk of racking up debt you can't handle.

Perfect for financial newcomers

If you're just starting your financial journey, KOHO is honestly perfect. You get to practice managing money responsibly without the risk of creating debt.

Plus, you'll learn healthy spending habits that will serve you well when you eventually get a credit card.

But wait, what about building credit?

Okay, we'll be straight with you – KOHO doesn't directly build your credit score because you're not borrowing money.

KOHO Credit Building is a feature that helps you build your credit history through a secure line of credit that reports your payment activity to Equifax.

Unlike secured credit cards that require a security deposit and charge interest on purchases, KOHO Credit Building:

• Does not require a large upfront deposit

• Does not have interest charges on purchases

• Is not a credit card, but rather a line of credit designed specifically for credit building

• Reports monthly to Equifax

What this means for you?

So, is KOHO debit or credit? We're proudly neither – and we think that's what makes us special.

We're a prepaid Mastercard designed for people who want:

• The convenience of a credit card

• The security of a debit card

• The perks of neither

• All wrapped up in a digital-first experience that doesn't suck

We like to think of ourselves as your friend in finance. We are here to help you spend smarter, save faster, and actually enjoy managing your money.

Ready to ditch the traditional banking headaches and try something better? Open your KOHO account today and see what modern banking should feel like.