What is Credit Building?


An affordable way to build your credit history with KOHO. Head to your KOHO app and click Credit > Credit Building > Register to build your credit history.

Who can use this feature?

There are currently only two eligibility requirements:

  • Your KOHO account has been fully verified

  • You must have enough funds in your account to cover the subscription fee (not including Vault)

How does it benefit my credit history?

Upon registering for the feature, you are issued a no-fee no-interest tradeline*. This tradeline is separate from your available balance. Every month, we deduct a portion of these funds and report the activity to the credit bureaus. This process will repeat every month. While you're welcome to access the funds from this tradeline, you have no obligation to withdraw from this tradeline in order to feel the impact of Credit Building.

What do I have to do?

First, you’ll need to ensure that there are enough funds in your account each month to cover the monthly subscription fee**. Every month, you’ll also be asked to set your utilization rate in-app. We recommend a utilization rate of 30%. Every month, you’ll repay the line of credit. Making on-time payments will build your credit history.

* A tradeline (or line of credit) is an account opened under your name that will appear on your credit report

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

What is a Utilization Rate and How Does it Work?

A utilization rate is the amount of credit you’re using divided by the total amount of credit you have available.

For example, let’s say you’ve been approved for a line of credit for $100. If you choose to withdraw all $100 that you were approved for, your utilization rate is 100%. If you choose to withdraw only $20 from the available $100, then your utilization rate is 20%.

What Utilization Rate Should I Choose?

With our Credit Building feature, you get to choose your utilization rate, but we recommend setting it at 30%. Our Credit Building experts have determined that a utilization rate above 30% is not ideal for increasing your credit history (it is likely to still increase, however potentially not as much as with a lower utilization rate).

Please note, that the utilization rate needs to be updated every month it will reset to 0% on the billing date.

How long can I use this feature?

For as long as you wish - you will remain subscribed as long as your subscription fee is paid!

To learn more visit koho.ca/credit-building 😀

Did this answer your question?