What is Credit Building?
An affordable way to build your credit score with KOHO. Head to your KOHO app and click Tools > Credit Building > Register to build credit.
Who can use this feature?
There are currently only two eligibility requirements:
Your KOHO account has been fully verified
You must have at least $7 in your account balance (not including Vault)
This feature is currently not available in Saskatchewan.
How does it work?
Want to build your credit score? Start by subscribing to Credit Building for $7/month and over the 6 month long program you can grow your credit score without having to lift a finger!
How does it benefit my credit?
Upon registering for the feature, you are issued a no-fee no interest line of credit that is dedicated to credit building. This line of credit is separate from your available balance because you shouldn’t spend it, it’s for building your credit! Every month, we automatically deduct a portion of these funds and report the activity to the credit bureaus. This process will repeat each month for six months and this activity will positively impact your credit!
What do I have to do?
First, you’ll need to ensure that there’s $7 in your account each month to cover the subscription fee. You’ll also be asked to set your utilization rate (we recommend 30%).
We’ll take care of the rest behind the scenes. Making on-time payments will positively impact your credit score.
How much is it?
$7/month for 6 months totalling $42. You can always renew after the 6 month period to keep growing your credit score!
You can also choose to pay the $42 fee upfront. Just set and forget! No tracking or missing payments.
Just a heads up, this charge will appear as CB SUBSCRIPTION FEE in-app!
How often can I use this feature?
The Credit Building feature works in 6-month cycles, billed monthly (or you can choose upfront billing during registration). Therefore, you only need to subscribe once every 6 months.
How will I know if it’s working?
Shortly after registering for Credit Building in-app, you’ll be able to see your current credit score. Every month after we’ve successfully taken payment and reported to the credit bureaus you’ll be able to see your updated credit score, as well as your change in score, in-app within the Credit Building page.
Will it require a hard credit check?
No, we believe everyone should have access to building their credit! Upon registration, we do a soft credit check to get your credit score, but that’s it. For additional clarity, the soft check we run during registration does not impact your credit score.
Which credit bureau(s) do we report to?
We report to Transunion.
Why did my credit score go down?
If outside of KOHO you have missed payments (car, credit card, bills, etc.), tried to get access to a lot of credit in a short period of time, or defaulted on any loans or accounts, then there are negative implications to your credit score that are beyond our control. These are common examples of negative credit activity that might adversely impact your score.
What happens if I miss a payment?
Just as making your payments on time will positively impact your credit score, the inverse is true. Not making your payments on time will hurt your credit score.
To keep it simple: We advise you to let KOHO do all the work after you register. Just ensure there is $7 in your account balance (not including Vault) for the subscription fee each month so you won’t miss a payment!
What happens if I see "0" in-app?
If you are looking at your credit history and see “0” this just means that we did retrieve your score, but you don’t have enough credit history just yet!
Why is my score with KOHO different than another reporting service that I use?
Currently, KOHO's Credit Building tool pulls your score directly from TransUnion. The score may differ from what you’re seeing using other score reporting services because there are two major credit bureaus in Canada and these agencies may have different criteria for scoring your credit!
Why couldn’t it find my score?
Usually, if registration fails (and funds are returned to you), this is caused by one of the following reasons:
It could be that you don't yet have a credit file with TransUnion
It could be because the personal information on your credit file, e.g. date of birth, address and name don't match your info on your KOHO account
We recommend double-checking your details under Personal > Personal Details 😊