Koho Credit Building Review

koho credit building

Koho Credit Building is a product that helps individuals establish and restore credit ratings for future financial and life goals. The Koho product plays a significant role in giving people another chance at building a future for themselves in life and business by offering tools, coaching, and improving spending and saving habits.

Koho is a Canadian-based company that offers a wide variety of affordable banking alternatives. The fintech company offers the Koho credit building that helps individuals re-establish a good credit rating. Koho is known for its low fees and straightforward approach for customers while allowing them to spend cash and save without high charges.

How the Koho Credit Building Works

It’s easy to get started with Koho by registering online for a new account. I found the process relatively straightforward, whether you sign up on your desktop or mobile app. The company often offers promotional codes, such as CASHBACK, for a welcome bonus of $20. 

Once you establish an account, you can register for the credit building tool in the app, which helps monitor your credit rating and progress over time.

Koho is one of the newest digital banks in Canada, which makes it easy to sign up for a range of products, depending on your credit score. I found the fee relatively small, only $7.00 per month, to essentially improve your credit score in preparation for future opportunities for financial lending and establishing a better foundation for the future.

Once your account is set up, Koho offers a line of credit with a set amount of funds, a portion of which is reported monthly to the credit bureau. The process increases your credit score while only paying the $7.00 fee each month. All you need to do is ensure that the minimum balance of your account is the fee amount, at the very least.

The Benefits of the Koho Credit Building Product

There are some notable benefits to signing up for the Koho credit building product. It’s relatively simple to start an account, which is monitored with the prime goal of building a good credit score within six months. All you need to do is keep the subscription fee in your spendable account, which ensures your fees are always paid.

You’ll enjoy some profound benefits that I feel are ideal for people struggling with building credit or in a position where they need to “reset” their credit rating with their financial goals in mind:

  • Koho’s website offers practical advice for improving credit, including paying your bills on time, using no more than 30% of your credit balance, and other valuable tools.
  • Koho’s credit building product is specially designed to set up your rating for a brighter financial future.
  • There’s little work to be done to maintain your account, as long as you pay the monthly fee.
  • You can see improvement in your credit in as little as six months.

Koho offers an easy interface on the website and the mobile app, which I found effortless to learn and navigate within a short time. It’s ideal for anyone new to digital banking and needs assistance with budgeting and improving spending habits for future goals.

Advantages and Drawbacks of the Koho Credit Builder

Koho’s credit builder product is inexpensive and an excellent solution for anyone who wants to secure a loan or specific lending product in the future. There are some important pros and cons to consider before you sign up for this option. While Koho is considered one of the best digital banks for credit building options, it’s essential to know a few details about the company and this product.

The Advantages of the Koho Credit Building

The initial benefit of this card is its affordability, costing only $42.00 for the first six months. I like the idea of paying this amount upfront or leaving it in your account for the automatic withdrawal of $7.00 each month. There are other advantages you’ll notice when you sign up for this product:

  • You’ll always have access to your credit score, so you can monitor it regularly and note any progress or changes.
  • There is no hard credit check, just a “soft” assessment, which doesn’t negatively impact your credit score at any time.
  • You’ll be assigned a line of credit that is interest-free as a tool to learn good budgeting practices.
  • You’ll have access to your credit score anytime, which gives you a good idea of your overall status and credit rating.
  • The mobile app offers a quick and straightforward way to view your account, with tools to help you set a working budget, so you can take greater control of how much you spend.

The Drawbacks of the Koho Credit Building

Are there any disadvantages to this product? Overall, it’s a good product with some limitations that you’ll want to take into consideration.

  • While Koho offers an excellent opportunity to improve your credit, there is no guarantee that the credit builder will provide significant results.
  • Koho’s products aren’t widely available across Canada and cannot be purchased in New Brunswick, Quebec, and Saskatchewan.
  • While Koho offers access to your credit score and progress on your credit building, it doesn’t offer detailed credit reports, which must be obtained separately.

Features of the Koho Credit Builder

If you’re not familiar with how digital banks and credit building work, I suggest getting familiar with this innovative product’s features to improve your financial health and help you achieve future lending goals.

Credit products can seem intimidating to people unfamiliar with how credit works, making Koho a great option. The company offers one of the easiest ways to start your journey in building a solid financial foundation. It’s also different from traditional banks, without any branches or stores to visit. Everything is done online.

Koho is a trustworthy company, and any funds you have with the company, whether with your credit building product or other accounts, are held at the People’s Trust and insured as a CDIC member institution, which protects up to 100,000 per account.

Adding the Credit Builder to a Koho Visa Card

Koho makes it easy to use your credit-building service to develop better spending and saving habits with one of two cards: Regular Koho and Premium Visa cards. Both cards offer some advantages, including 0.5% on purchases from the regular Koho Visa card and 2% cashback on the Koho Premium Visa card.

There are no monthly fees on the cards, and you’ll have access to coaching on your finances and budgeting, price matching, and no currency exchange fees when you travel. Both types of Koho Visa cards can be used much like a credit card and similar to a debit card. They are generally compatible in most places and work as a valuable tool to control and monitor your spending.

What You Need to Consider Before You Sign up for Koho’s Credit Builder

This helpful product is easy to start the journey to improve your credit, and I fully support its purpose. It’s also essential to understand registering for a Koho credit building product is not an automatic fix for bad credit or ongoing late payments and severe debt that will take months or years to resolve.

It’s essential to prepare your mindset and spending habits to align with your credit building application and take steps in addition to this product to improve your chances of securing financial products and loans in the future. One of the most critical steps to take is making payments on time and avoiding late fees.

If you have one or more creditors that you are actively repaying, review the installments, interest rates, and other factors, as they may become unaffordable or difficult to repay, depending on your circumstances. You’ll benefit from negotiating with creditors for lower payments or changing the terms to make the repayment plan more affordable and attainable.

Take Additional Steps to Protect Your Future Credit

Establishing good credit and repairing your current rating goes beyond the Koho Credit Builder option, which is still an essential part of your plan. I suggest making some of the following changes today in preparation for your new and improved credit:

  • Request a copy of your credit file and review it carefully. Do you notice any errors or inconsistencies that don’t add up? Dispute anything that’s not accurate or maybe a mistake.
  • If you have credit cards or lines of credit with a high limit, have these amounts reduced to make them easier to manage and pay down.
  • Avoid applying for any new credit cards or accounts while you’re in the process of repairing your rating. Many credit card or product applications require a hard credit check, which can harm your rating.
  • Set a realistic budget, and don’t use your credit cards for large purchases. Keep your old credit accounts, and track your spending habits to see where certain expenditures can be reduced or eliminated to improve your disposable income.

Is the Koho Credit Builder a Good Option?

Koho Credit Building is not as widely available across Canada, as it cannot be purchased in three provinces. However, it’s ideal for anyone who is a Canadian citizen, 18 years of age or older, and looking to establish a good rating.

While this credit-building application is ideal for supporting your credit improvement, there are no comprehensive tutorials or coaching. The prepaid Visa card or premium Visa through Koho offers a bit more support in this area. However, I would recommend seeking further advice from a financial consultant if you’re concerned about your credit and financial status.


Overall, Koho offers a great product that’s easy to use for beginners and anyone who isn’t too familiar with building credit. Several comparable products are similar to Koho’s Credit Builder, which vary in price and fee structure, depending on the benefits you want. For example, TransUnion continually offers access to credit reports and ratings, while other companies offer limited access to ratings less frequently.

Koho’s rates are slightly below average and a worthwhile investment to restore your credit when you consider the cost of $42 for six months. I find the company’s credit builder app easy to use when I need to check my balance and other information at a glance. Koho is a reputable digital bank that is likely to offer more products to support credit improvement in the future, and it’s a worthwhile investment. 

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