How does Credit Building work?
Updated over a week ago

KOHO's Credit Building is a cost-effective way to begin your credit journey. When you sign up, you'll get a special tradeline just for building credit, with no fees or interest. Each month, you make payments on this tradeline. By making payments on time each month, you'll gradually establish a positive credit history, which will, in turn, improve your credit score.

With Credit Building, you can also get access to our in-house Financial Coach!

What is a tradeline?

A tradeline is an account that appears on your credit report.

How do I sign up?

You only need to meet two requirements:

  1. Make sure your KOHO account is fully verified.

  2. Have enough in your account to cover the subscription fee (not including your Vault)

To sign up, open your KOHO app, go to "Credit," select "Credit Building" and click "Register" to start building your credit history 🎉

What do I have to do?

When you sign up for Credit Building, we've got all the details sorted for you!

  • Once you register, you'll get a $225 tradeline without any fees or interest. This tradeline is separate from your available balance.

  • Your subscription automatically renews, so no need to worry about disruptions. Just make sure you have enough money in your account each month to cover the subscription fee.

  • Each month on your billing date, you'll need to set your utilization rate in the app. We suggest keeping it at 10% or lower. (Remember, you need to update your utilization rate every month because it resets to 0% on your billing date.)

  • We'll take a part of these funds when you set your utilization rate and report this activity to Equifax. This process repeats monthly as long as you remain subscribed.

* Just a heads up, this charge will appear as Credit Building Subscription in-app!

How long can I use this feature?

You can keep enjoying this service until you choose to cancel it through the app. We want to make managing your subscription as easy as possible for you, ensuring a smooth experience.

There's no time limit for how long you can use Credit Building, but for the best results, we suggest staying subscribed for at least 6 months to fully benefit from this feature.

How will I know if it’s working?

Shortly after signing up for Credit Building, you’ll be able to see your current credit score. Every month, once we receive and report your payment to the credit bureau, you'll see your updated credit score and how it has changed on the Credit Building page.

The reporting is sent the following month to include the first month's activity. For instance, if you make payments in August, the reporting will be sent in September. Most members take three months to see improvements!

What happens if I miss a payment?

Just like how paying your bills on time helps your credit score go up, the opposite is also true. If you don't pay your bills on time, it will damage your credit history. If you don't have enough money in your account to cover your Credit Building loan or fees, we will keep trying to collect the remaining amount every time you load money until it's all paid off.

How do I access the Financial Coach?

You can start a conversation with our Financial Coach in-app by asking your question and using #coach at the end of the message. Our Financial Coach can provide you with guidance on budgeting and saving.

Can I cancel?

We're sad to see you leave! To cancel Credit Building, follow these steps:

  1. Go to the Credit Building page.

  2. Click on "Credit Building."

  3. Tap the ⚙️ icon for "Manage."

  4. Select the three dots (...) in the top right corner.

  5. Choose "Cancel Credit Building."

Please note that you'll need to settle any outstanding fees or withdrawals to cancel this feature, and we can't provide refunds if you decide to cancel.

Just a heads-up: Canceling Credit Building won't affect your credit history, but your credit line will stay open for 12 months after canceling your subscription.

Subscription Refund Policy

All KOHO subscription purchases are non-refundable. See our Terms of Use for more details.

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