How does KOHO Credit Building work?

KOHO Credit Building creates a small instalment loan on your behalf and reports a monthly payment to Equifax. You do not receive or spend any loan funds — the loan is a technical construct that generates a payment history entry each month. Because payment history is the largest component of Canadian credit scores (approximately 35%), consistent monthly positive entries accumulate credit history over time. There is no hard credit check to activate the feature.

Does KOHO Credit Building actually work?

Yes, within the limits of what credit building means. The feature genuinely reports to Equifax each month, and payment history is a real credit score factor. The result over 12–24 months of consistent reporting is typically a measurable improvement in Equifax score, particularly for newcomers to Canada, students, and thin-file borrowers who have little or no existing credit history. It does not work as quickly as holding a secured credit card and making large regular purchases, but it requires no credit approval and no deposit.

How much does KOHO Credit Building cost?

KOHO Credit Building is included in all paid plans: Extra ($4/month), Everything ($9/month), and Premium ($19/month). On the free Essential plan, Credit Building is available as a $7/month add-on. The $7/month cost compares favourably to a secured credit card, which often requires a $200–$500 deposit plus an annual fee of $30–$75.

Does KOHO Credit Building report to TransUnion?

KOHO Credit Building currently reports to Equifax only — not TransUnion. Many Canadian lenders check both bureaus when assessing credit applications. Building a strong Equifax file is valuable, but your TransUnion file may remain thin unless you also have other credit products (credit cards, car loans, student loans) that report to TransUnion. For complete credit bureau coverage, pairing KOHO Credit Building with a credit card that reports to TransUnion is ideal.

Who benefits most from KOHO Credit Building?

Newcomers to Canada who arrived without a Canadian credit history, students opening their first financial products, and anyone rebuilding after past credit problems (bankruptcy, consumer proposal, years of delinquency) who cannot yet qualify for an unsecured credit card. For Canadians who already have an established credit history with multiple accounts, the incremental benefit of KOHO Credit Building is minimal — the credit score impact of an additional instalment loan is small when other accounts already provide history.

Is KOHO Credit Building better than a secured credit card?

They achieve similar goals through different mechanisms. A secured credit card (e.g., Home Trust Secured Visa, Capital One Secured) requires a $200–$500 deposit, charges an annual fee of $0–$75, and typically reports to both Equifax and TransUnion. KOHO Credit Building requires no deposit, costs $7/month on the free plan (included in paid plans), and reports to Equifax only. For newcomers who cannot access a secured card or who want to start building immediately without a deposit, KOHO Credit Building is a useful first step. For those who can qualify for a secured card, the dual-bureau reporting is an advantage.

KOHO Credit Building 2026 | Build Credit Without a Credit Card

KOHO’s Credit Building feature is its most distinctive offering in the Canadian fintech market. It reports a monthly instalment loan to Equifax — generating positive payment history without a hard credit check, without a credit card application, and without a deposit. For newcomers to Canada, students, and anyone rebuilding a damaged credit file, this fills a gap that most financial products do not address.

The feature does not require you to borrow or spend any money. The “loan” is a technical construct — KOHO creates it and reports the monthly “payment” to Equifax on your behalf. You never see the funds.

How KOHO Credit Building Works

Step	What Happens
1. Activate	Enable Credit Building in the KOHO app — no hard credit check
2. Monthly reporting	KOHO reports a small instalment loan and monthly payment to Equifax
3. Credit file entry	Equifax records the loan and payment history each month
4. Score impact	Payment history (35% of score) accumulates over time
5. Results	Measurable score improvement typically visible within 3–6 months

Credit Building Costs by Plan

Plan	Monthly Fee	Credit Building Cost
Essential (free)	$0	$7/month add-on
Extra	$4	Included
Everything	$9	Included
Premium	$19	Included

On the Essential plan: Credit Building costs $7/month ($84/year). On any paid plan, it is included in the plan fee.

Who Benefits from KOHO Credit Building

Newcomers to Canada arrive without Canadian credit history. A strong credit file in another country does not transfer to Canada — lenders here see a blank file. KOHO Credit Building, combined with a secured credit card or a credit-builder product, starts the clock on Canadian credit history immediately without requiring any prior credit approval.

Students and young adults opening their first financial accounts. Building credit before needing it (for a car loan, apartment, or mortgage) is significantly easier than trying to establish credit under urgency. KOHO Credit Building starts the Equifax file from month one.

Credit rebuilders who have been through bankruptcy, a consumer proposal, or years of missed payments. Once the mandatory credit bureau notation period has passed, rebuilding requires new positive entries. KOHO Credit Building adds positive instalment history without requiring lender approval.

What KOHO Credit Building Does NOT Do

Does not report to TransUnion — only Equifax
Does not create a revolving credit account — instalments differ from credit cards in credit mix impact
Does not increase your credit limit with any lender
Does not work instantly — credit history improvements typically take 3–12 months to be meaningful
Does not substitute for a credit card if you need revolving credit history for mortgage qualification

KOHO Credit Building vs Alternatives

Method	Cost	Credit Check	Reports To	Deposit Required
KOHO Credit Building	$7/mo (Essential) or included	No	Equifax only	No
Home Trust Secured Visa	$0/year	Soft check	Equifax + TransUnion	$500
Capital One Secured Mastercard	$59/year	Soft check	Equifax + TransUnion	$75–$300
Neo Secured Card	$0/year	Soft check	Equifax + TransUnion	$50+
Koho Everything (credit building included)	$9/month	No	Equifax only	No

For newcomers or thin-file borrowers with no deposit available: KOHO Credit Building is the lowest-barrier option. For those who can access a no-fee secured card with dual-bureau reporting (e.g., Neo Secured at $0/year, $50 deposit), the secured card may be preferable for broader bureau coverage. The two strategies are complementary — using both simultaneously builds history faster and on both bureaus.

Building Credit in Canada: The Bigger Picture

A Canadian credit score is determined by five factors:

Factor	Weight	How KOHO Helps
Payment history	35%	Monthly reports to Equifax
Credit utilisation	30%	Not applicable (no revolving credit)
Length of credit history	15%	Starts the clock from activation
Credit mix	10%	Adds an instalment account
New credit inquiries	10%	No hard check on activation

KOHO Credit Building directly improves payment history (35%) and credit mix (10%), and starts the length of credit history clock. It does not affect utilisation (no revolving credit) and does not trigger a new inquiry. The 45% coverage of score factors is meaningful — but the 30% utilisation factor requires a credit card to address.

For comprehensive credit building, the recommended approach is:

KOHO Credit Building (or a secured card) for instalment history on Equifax
A no-fee credit card used for regular purchases and paid in full each month — addresses utilisation, adds revolving history, reports to both bureaus