Let's play a quick game of Fact or Myth.

Fact or Myth? You need a credit card to build up your credit score.

Myth. Credit bureaus also count mortgages, car loans, student loans, personal loans and lines of credit. Credit cards are seen as a quick and accessible way to build up credit, but they’re not the only way to do it!

You can build your credit score with KOHO with our awesome Credit Building feature.

Fact or Myth? You should spend a lot of money on your credit card to generate a high score.

Myth. You actually want to keep your outstanding balance low. Credit bureaus want it below 30% of your total available credit (called your "credit utilization ratio") on both a per card and total card basis. 

Fact or Myth? You can use KOHO for everyday spend while also building your credit score.

Fact. If you have loans or a mortgage, it's easy. You can use that to build your credit score, while using KOHO for everyday spend. If you don’t have loans or a mortgage, spend a regular (but small) amount on a traditional credit card and pay it down in full each month. To keep it simple, pick a few stable and recurring expenses, such as your Netflix, Spotify, and your phone-bill. Use your KOHO card for all other purchases. 

Fact or Myth? It's worth being in credit card debt for all the points you earn.

Myth. We all love free-stuff, but carrying a balance and racking up interest isn't worth the interest charges or dings to your credit score.

We also offer a Credit Building feature that you can check out at koho.ca/credit-building!

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