To start enjoying our Secured Credit Building feature, simply make sure you're already signed up for Credit Building!
What is Secured Credit Building?
With KOHO's Secured Credit Building, you can build your credit history using your own money. Think of it like a savings account that helps boost your credit. Here's how it works:
Put in $30 to $500 into your account to create a secured credit line.
Transfer the money to your KOHO account. It's best to use no more than 10% of your deposit.
On your next billing date, we'll automatically move the money from your KOHO account back into your secured credit line. Just ensure the money is available in your Spendable.
See your credit history improve 🎉
Just remember to keep enough money in your Spendable for us to return what you spent, and we'll report this activity to Equifax.
With Secured Credit Building, you can also get access to our in-house Financial Coach!
How do I register?
To opt into our Secured Credit Building feature, you first need to subscribe to Credit Building. The Secured Credit Building option is specifically offered as an additional feature to our existing Credit Building service.
To subscribe to Secured Credit Building, all you need is enough money for a deposit and the monthly fee.
Open the KOHO app
Tap the Credit button (bottom right), then tap on "Learn More and "Sign up for Secured Credit Building."
How much can I choose to deposit?
You can deposit anything from $30 to $500.
How long can I use this feature?
There's no time limit for how long you can use Secured Credit Building, but for the best results, we suggest staying subscribed for at least three months to fully benefit from this feature.
How will I know if it’s working?
Shortly after signing up for Secured 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 Secured 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.
What is a utilization amount and how does it work?
Utilization 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 is 100%. If you choose to withdraw only $20 from the available $100, then your utilization is 20%.
Please note, we report the utilization amount based on the end-of-month balance.
Can I change my available Credit Limit amount?
Certainly! You can change your available Credit Limit amount in the app. To do this, make sure you have the latest app version installed, and then follow these steps:
Go to the "Credit" section in the app.
Click on "Secured Credit Building."
Find the ⚙️ icon in the upper right corner and tap on it.
Select "Change security deposit 💰."
Just a quick tip: If you want to increase your deposit amount, ensure you have enough money in your Spendable. However, if you want to decrease your security deposit, you can't go below the amount you've already taken out from your Secured Credit Building account.
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.