What to Buy With a Credit Card to Build Credit

You can buy almost anything with a credit card to build credit. What matters most is how you use the card, not what you purchase.

The biggest drivers are paying on time and keeping your balance low compared to your limit.

KOHO Essential

If you want something you can use for everyday spending while you work toward stronger credit habits, with KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

The Best Things to Put on Your Credit Card

Pick purchases that are:

• Small

• Predictable

• Easy to pay off in full

Good examples:

• Groceries

• Transit or gas

• Your phone bill

• A streaming subscription

• School supplies

• A small recurring bill you already pay

These help because they make it easier to pay on time every month. Payment history is a key factor in credit scores.

What to Avoid If Your Goal Is Building Credit

• Big purchases you can’t pay off

• Maxing out your limit (high credit utilization can hurt)

• Missing payments (late payments can have a major negative impact)

A Simple “Build Credit” Routine That Works

1. Put 1–2 small purchases on your card each month.

2. Keep your balance low. In Canada, a common guideline is using under 30% of your available credit.

3. Pay at least the minimum on time. Paying the full balance helps you avoid interest.