Please note: this feature is currently rolling out to select users. We'll notify you directly once it becomes available to you!

What is Flexible Credit Building ?

KOHO’s Flexible Credit Building gives you the ability to build your credit history with your own funds! Take control back into your hands by setting up a no interest, low cost, line of credit of between $50 - $500.

How does it work?

As soon as you register, we’ll collect the amount immediately from your Spendable balance as a deposit, and then you can withdraw from this line of credit any time you wish. Just make sure you have enough funds in your Spendable for us to take back what you withdrew and we will report the activity to Equifax!

How do I register?

To opt into this feature just have the subscription fee and deposit ready! To opt in:

  1. Open the KOHO app

  2. Tap the Tools button (bottom right), then tap Flexible Credit Building.

How much can I choose to deposit?

You can deposit anywhere from $50 - $500.


How does it benefit my credit history?

Upon registering for the feature, you are issued a low fee, no-interest line of credit. This line of credit is separate from your available balance. Just make sure you have enough funds in your Spendable for us to take back what you withdrew and we will report the activity to the credit bureaus. This process will repeat every month for six months.

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 Flexible Credit Building feature, you get to choose your utilization rate, but we recommend setting it below 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).

Can I change my available Credit Limit amount?

For the moment, you will only be able to change your credit limit by cancelling and re-subscribing to this feature. However, we are working to make this process more convenient in the future. The maximum available credit limit is $500.

How do I cancel this?

If you would like to cancel your plan, you will need to cancel it before the end of the current subscription period. To cancel your subscription, please reach out to our friendly support team at [email protected]

Please note, while your security deposit will be returned to you upon cancellation, your subscription fees are non-refundable.

How long can I use this feature?

For as long as you like - you will remain subscribed and continue building your credit history as long as you continue paying the fee!

How do I know if it's working?

Shortly after registering for the Flexible Credit Building in-app, you’ll be able to see your current credit history. Every month after we’ve successfully taken payment and reported to the credit bureaus you’ll be able to see your updated credit history, as well as your change in credit history, in-app within the Credit Building page.

What happens if I miss a payment?

Just as making your payments on time will build your credit history, the inverse is true. Not making your payments on time will hurt your credit history. If your account happens to have non-sufficient funds (NSF) for your Flexible Credit Building funds repayment, we'll continue to collect the outstanding amount each time you load until it is fully paid back.


Why did my 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 history that are beyond our control. These are common examples of negative credit activity that might adversely impact your credit history.

Subscription Refund Policy

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

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