Credit Building by KOHO review
Canadians can build and recover their credit score with Credit Building by KOHO, an affordable, accessible and easy-to-use financial product.For a small monthly fee, KOHO will deposit a nominal sum of cash into your account. For six months, KOHO withdraws a portion of the deposited cash. It reports the withdrawal as a repayment to a major Canadian credit bureau, thereby helping you build and improve your credit score.
In Canada, credit scores are an important tool for achieving financial and life goals. If you’re new to Canada or just beginning your financial journey, you may not have credit history yet. Alternatively, you may have endured financial hardship that took a toll on your credit score. Either way, lack of credit history or a poor credit score can significantly impact your ability to achieve your life and monetary goals. KOHO created the Credit Building product to help Canadians improve their credit score.
How does borrowing from KOHO work?
Immediately after applying for Credit Building by KOHO, a specified amount of dedicated funds will be deposited into your KOHO account. It is advised that you refrain from spending the amount to avoid complications with the loan.
For the next 6 months, KOHO will withdraw a $7 fee every month from your account. It will also withdraw a set amount each month, which will be considered as repayment of the loan. Every payment will be reported to one of the major Canadian credit bureaus. Full, timely payments have a positive impact on credit scores.
Once the 6 months period is over and the specified amount that was initially deposited has been repaid, users can reapply for Credit Building by KOHO, if they choose. Keep in mind that users are not guaranteed an improved credit score under this program. External factors can impact your score, such as missed payments or utilization ratios.
Features of a personal loan from KOHO
Below is a summary of the Credit Building by KOHO features:
- No interest. This product doesn’t have an interest rate. However, you will be charged a monthly fee of $7.
- Available almost everywhere in Canada. Credit Building by KOHO is available in all provinces and territories except for Quebec, Saskatchewan and New Brunswick.
- Credit score check. Every time you apply for this product, KOHO will pull your credit score. Credit checks have a short-term, negative impact on your credit. Repayment of the dedicated funds has a positive impact on credit scores.
- Credit Building page. Users can track changes to their credit score using the Credit Building page in the KOHO app.
How much will a KOHO personal loan cost?
It’s free to apply to the Credit Building by KOHO program. Users will have to pay a monthly fee of $7 over the 6 months period. The total cost for this program is $42.
How to apply
Interested individuals can apply for Credit Building by KOHO using the app. To be eligible for the program, you must meet the following criteria:
- Be a citizen or resident of Canada (not currently not available in Quebec, Saskatchewan, and New Brunswick)
- Be the age of majority in your province or territory
- Have an account with KOHO
- Be prepared to pay the $42 fee over the course of 6 months
You will be asked to provide some personal information during the application process. KOHO pulls your credit report before admitting you into the program which is why these details are required.
Credit Building by KOHO is an affordable, safe way to build or recover your credit score. Even though the program lasts 6 months, KOHO customers can use the program numerous times until they achieve their credit goals. Keep in mind that Canadians can incorporate other financial habits into their daily routine to further assist with credit score improvements.