KOHO Credit Building Review 2024: The Best Credit Builder In Canada?

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If you’re one of the millions of people who have bad credit, you know how difficult it can be to get approved for a loan or line of credit. But what if there was an easier way?

The KOHO Credit Building product can help you rebuild your credit rating and improve your financial future without having to apply for any new loans or credit cards.

In this KOHO Credit building review, we’ll take a closer look at what this product does and how it can help you improve your credit score.

We’ll also give you some tips on how to improve your credit score fast. 

So read on to learn more!

What is KOHO Credit Building?

The KOHO credit building product is an innovative credit-building tool developed by KOHO, a financial technology company, to help users get their credit score back on track quickly and cheaply.

For a small fee, anyone can start (re)building their credit without the need for a large deposit that is required for other credit-building tools like secured credit cards.

How Does KOHO Credit Builder Work?

Like the other KOHO products, getting started with the KOHO Credit Builder tool is straightforward.

Here are the steps to start building your credit using KOHO credit building product.

  • Sign up for KOHO if you’re not already a user. If you are, skip this step and move to the next one below.
  • Download the KOHO app and subscribe to Credit Building within the app under Tools 
  • The monthly subscription fee of $10/$7 is deducted from your account for 6 months
  • KOHO reports your payment to one of the major credit bureaus in Canada (TransUnion)

You’ll receive a welcome bonus of $20 when you sign up with a KOHO referral code (WALLETBLISS) and use the card for at least one purchase within 30 days of signing up.

That’s all. You can simply set it and forget it. 

Just make sure your spendable account has enough money to cover the subscription and you’ll be on your way to building or rebuilding your credit.

If your account is not funded and you miss a payment, KOHO will report the missed payment to the credit bureau, and it will hurt your credit score.

You’ll be able to view and monitor your credit score through the KOHO app. But KOHO only shows your TransUnion credit score.

It is always a good idea to track your credit scores and credit report from the 2 major credit bureaus in Canada. Go here to get your free Equifax credit score and credit report weekly.

Learn more about KOHO in this KOHO Review.

Benefits of KOHO Credit Building

Here are some of the benefits of KOHO Credit Building

  • Low fees compared to other products for building credit
  • Hands-off and easy way to get started
  • No hard credit check required to use
  • Easily track and monitor your credit score through the app
  • Access to other innovative products and tools from KOHO
  • Available in most Canadian provinces and territories

Drawbacks of KOHO Credit Building

As great as the KOHO credit building product is, there are a few drawbacks to be aware of:

  • It is currently not available to Saskatchewan residents
  • It is not free – but then, the monthly fee is very affordable
  • Unfortunately, there is no guarantee that the tool alone will improve your score.

KOHO Credit Builder Cost

So how much does KOHO credit building cost?

The monthly subscription for KOHO credit building vary per account. The KOHO easy or basic account charges a $10 monthly fee for the credit building.

However, the KOHO premium account charges $7 per month for credit building.

Since the program last for six weeks, we should expect to pay a total of $60 under the basic plan or $42 under the premium plan..

If you want, you can start another 6-month cycle to continue to build your credit with KOHO.

Is KOHO Credit Builder Worth it?

If you have a bad credit and won’t qualify for a credit card to start improving your score or don’t want to lock in your funds to get a secured credit card, then the KOHO credit builder is definitely worth a try.

But know that there are other factors that go into calculating your credit score. So the KOHO credit builder feature would not necessarily improve your score on its own.

Check this post to learn more about how your credit score is calculated in Canada.

How to Apply for KOHO Credit Builder

The process of applying for the KOHO Credit Builder tool is straightforward. All you have to do is follow the steps below:

  • The first step is the sign-up for the KOHO Credit Builder tool 
  • After you sign-up, KOHO will conduct a soft check to get your credit score
  • Make use of the KOHO app to monitor the development of your credit score

There is nothing more for you to do as long as you consistently have $$10 or $7 in your account to cover the monthly fees.

Alternatives to KOHO Credit Building

There are several credit building products with varying prices for those looking to improve their credit scores in Canada.

An affordable and easier option that guarantees approval is secured credit cards.

With secured credit cards, you make a security deposit that becomes your credit limit. And you use the credit card the same way you would normally use any other card.

If you make all your payments on time and use the card wisely, you should start seeing some improvements in your credit score.

Some of the best secured credit cards in Canada include:

Unfortunately, most secured credit cards are not free. There are usually annual fees and monthly maintenance charges to pay.

In the next section of this KOHO credit building review, we’ll look at some of the other products offered by KOHO.

Other KOHO Products

As an innovative financial app that was created to help Canadians spend and save smarter, KOHO offers other products to its users.

Some of these products include:

KOHO Accounts

It is a full-service account with no fees powered by Peoples Trust. That means your funds enjoy CDIC protection up to $100,000.

The KOHO account can be opened as an individual or as a Joint account with other people.

KOHO Prepaid Mastercards

The KOHO prepaid Mastercards let you earn at least 0.5% cashback on your everyday purchases, with higher cashback rates at some partner merchants.

The Standard card has no monthly or annual fees, but the KOHO premium card costs $9/month or $84 per year.

With the premium card, you earn 2% cashback on transportation, groceries, and restaurants, and 0.5% on every other spending category.

All KOHO users have access to in-app financial tools, but premium users get free financial coaching and no foreign/FX fees on their card spending.

Learn more about its offering in this KOHO Prepaid Visa Card review.

Early Payroll

Get access to your paycheque up to 3 days earlier with no interest or fees. The amount you get is currently capped at $100

Overall, the KOHO account and app has some cool features to help Canadians get control of their finances. A few of the best ones include:

  • Competitive interest rate of 1.20% on funds
  • KOHO Roundups that lets users automate their savings by rounding up every purchase.
  • Setup bill payments and pre-authorized debits.

Simple Ways to Build Your Credit Score Fast

In addition to the credit boost you get from the KOHO credit builder service, here are some other tips you can follow to help you start building your credit score fast:

  • Always pay your bills on time
  • Reduce your credit utilization ratio
  • Limit the number of new credit applications
  • Monitor your credit score and credit report regularly

Learn more about ways to improve your credit score.

Some FAQs: KOHO Credit Building Review

What is the KOHO credit building fee?

The service costs $7 per month for a total of $42 over the 6-month cycle that each subscription runs for.

Is KOHO credit building free?

The KOHO prepaid card is free but there’s a monthly charge of $7 to use the credit building feature.

Is KOHO credit building available all over Canada?

The credit builder product from KOHO is available in all provinces and territories except for Saskatchewan.

Will KOHO help me build credit?

Though there are no guarantees, but making regular, on-time payment for the KOHO credit building service should positively impact your credit score.

Will KOHO pull my credit score?

As part of signing up, KOHO pulls a soft credit check that will not affect your credit score in any way. This is one of the pros of the service.

Do I have to make a security deposit to use KOHO credit building service?

No, there are no security deposit requirements to enjoy the benefits of the credit building feature from KOHO.

Final Thoughts

Overall, this KOHO credit builder eview is positive.

If you’ve been struggling to build your credit score, the credit builder feature from KOHO could be a simple and hands-off way to help you out. 

In addition, you get access to several other benefits such as high interest savings account, early access to pay-cheque, cash-back on everyday purchases and more.

If you’re ready to get started with rebuilding your credit, sign-up using this KOHO referral link or promo code WALLETBLISS to get a welcome bonus of $20 after your first purchase with the KOHO prepaid card.

Learn more: KOHO Referral Code

KOHO Credit Builder Review


The KOHO Credit Builder makes it simple and convenient to start building or rebuilding credit in Canada. Get a welcome bonus of $20 using KOHO referral code: WALLETBLISS.

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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