KOHO is technically a reloadable prepaid Mastercard, acting as a hybrid between debit and credit. You load your own money onto the card (like debit), but it runs on the Mastercard network (like credit) for purchases. When paying at a terminal, select "credit".
Is KOHO Like a Debit Card? Functionally, yes—KOHO is much closer to debit than credit: You're spending only what you have. You can set it up as your everyday account for income and bills.
If you want a flexible line of credit without a ton of back-and-forth, KOHO Line of Credit is designed to be straightforward and handled fully online. With KOHO's line of credit, you can: Apply to get between $1,000-$15,000. Get interest rates as low as 19.9%
KOHO isn't a traditional credit card—it's a prepaid Mastercard® you load with your own money. With KOHO Essential Plan: It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000. Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.
KOHO's Credit Building offers a safe way to build credit without the risk of compounding debt that can come with traditional credit cards or lenders, helping you achieve the same goal: a stronger credit history.
KOHO Line of Credit
Apply online for about $1,000–$15,000 in available credit. Get interest rates as low as 19.9% Only pay interest on what you actually use, not on your full limit.
If you need help bridging a short-term gap, KOHO's cash advance is built exactly for that. With KOHO Cover, you can: Get up to $250 as an instant cash advance (amount depends on eligibility) Pay no interest on the advance.
To get a $30,000 credit limit, you need excellent credit (740+ FICO), high income, low credit utilization (under 10%), and a strong payment history, often achieved by responsibly using a premium card heavily and requesting increases after 6+ months, or applying for a new high-limit card, as issuers look for demonstrated need and financial stability.
Kovo keeps track of all your monthly payments and reports them to credit bureaus every month. It reports to TransUnion, Equifax, Experian, and Innovis. Pay the monthly installments ON TIME to build a better payment history, which can improve your credit score.
You betcha, KOHO can be used to rent cars! Though not all franchises will accept pre-paid cards. Each franchise may also be location dependent. Just a heads up that for car rentals, hotels, and gas stations, merchants may put a pre-authorization hold (usually around 15-20%) on your card.
Your credit limit is the total amount you are approved to borrow. Available credit is the amount you currently have left to spend. For example, if your credit limit is $5,000 and you've spent $2,000, your available credit is $3,000.
The 2-2-2 credit rule is a guideline for building strong credit, suggesting you should have two active credit accounts (like cards or loans) for at least two years, with consistent on-time payments for those two years, often with a minimum credit limit of $2,000 per account, to demonstrate financial responsibility to lenders, especially for mortgages. It's a benchmark to show you can handle credit well over time, reducing lender risk and improving approval odds for major loans.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Prepaid cards are very different from credit cards. This can be confusing because both types of cards may have a card network logo such as Visa, MasterCard, American Express, or Discover on them. When you use a credit card, you are borrowing money.
Interest rates
KOHO Essential isn't a secured credit card, but it offers an alternative path to building credit in Canada.
A secure, affordable way to build your credit history
Short answer: KOHO can help build your credit, but not automatically. Everyday spending on your prepaid KOHO Mastercard by itself usually doesn't show up as a traditional credit account on your credit report.
The 11-word phrase often cited to stop debt collectors is "Please cease and desist all calls and contact with me, immediately," which leverages your rights under the Fair Debt Collection Practices Act (FDCPA) to halt most communication, though it must be sent in writing via certified mail to be legally binding, and collectors can still notify you of lawsuits.
Refer a friend to KOHO and get a cash reward of up to $100, while your friend gets 3 months free of the Everything plan—a value of $66!
The 15/3 credit card payment method is a strategy to potentially boost your credit score by making two payments per billing cycle: one about 15 days before your statement closes (to lower reported utilization) and another around 3 days before the payment due date (to cover the rest and avoid late fees), though its actual impact on credit scoring is debated. It works by keeping your reported balance lower when the card issuer reports to bureaus, but experts note the specific timing isn't magical, and focusing on the reporting date is key.