Does KOHO's credit building feature actually work? Who should use it? Is $10/month worth it? An honest, comprehensive review.
KOHO Credit Building is one of the most accessible credit-building tools in Canada. At $10/month with no credit check required, it's a legitimate option for newcomers, students without credit history, and Canadians rebuilding after financial difficulty. Most users see credit score improvement within 3–6 months. The main limitation: it only reports to Equifax, not TransUnion.
KOHO Credit Building uses a "secured line of credit" model that reports your payment history to Equifax to build your credit score.
No credit check, no application process. Available to any KOHO account holder in good standing.
Your $10/month fee supports a small credit product that KOHO reports to Equifax as a credit account. You don't actually borrow money — it's a mechanism to get a credit report entry.
Each month KOHO reports your payment as "on-time" to Equifax. On-time payment history is the #1 factor in credit scores (35% of your score).
Most users see their Equifax credit score begin improving within 2–3 months, with meaningful improvement in 6 months. Users starting from 0 (no credit history) typically reach 600–650 within 6–12 months.
Unlike secured credit cards that require a $200–500 deposit upfront, KOHO Credit Building requires no deposit. Cancel any month — the positive credit history you built remains on your report.
Approximate Equifax score trajectory for a KOHO Credit Building user starting with no credit history (score 0 or "N/A"):
* Individual results vary. Starting score, other credit accounts, and payment behaviour all affect outcomes.
| User Type | Should Use? | Reason |
|---|---|---|
| Newcomers to Canada (0 credit history) | ✓ Yes | Best no-credit-check option to build initial credit file |
| Students (18–24, no credit history) | ✓ Yes | Builds credit without needing to qualify for a credit card |
| Recovering from bankruptcy/consumer proposal | ✓ Yes | No credit check — accessible even with damaged credit |
| Self-employed with irregular income | ✓ Yes | No income verification required, $10/month is manageable |
| Anyone with credit score below 600 | ✓ Yes | Adding positive payment history improves score over time |
| Someone with credit score above 700 | ✗ Skip | Marginal improvement at high scores; better to optimize existing accounts |
| People who already have credit cards + pay on time | ✗ Skip | Already building credit through existing accounts |
Get KOHO free, enable credit building for $10/month when you're ready. No credit check, no deposit, cancel anytime. Plus get a $100 bonus when you use referral code 45ET55JSYA.
Get KOHO + $100 Bonus — Code: 45ET55JSYA →For the fastest results: use KOHO Credit Building ($10/mo, no credit check) to start building immediately, then once your Equifax score reaches ~600–620 after 3–6 months, apply for a student or secured credit card that reports to both Equifax and TransUnion. This two-bureau approach accelerates your credit file development.
Yes — KOHO Credit Building genuinely works for building an Equifax credit score. The mechanism is legitimate: KOHO opens a small secured credit facility in your name and reports monthly on-time payments to Equifax. Since payment history is 35% of your credit score (the single largest factor), consistent on-time payments steadily improve your score. Most users report meaningful improvement within 3–6 months.
Yes. KOHO is a regulated Canadian financial services company. Their credit building product is a legitimate financial product, not a scam. The $10/month is a service fee — you don't lose this money to bad credit or default. KOHO is CDIC-insured, FINTRAC-registered, and has over 1 million Canadian users. The BBB and Trustpilot reviews are generally very positive.
Currently, KOHO Credit Building reports only to Equifax, not TransUnion. This is a limitation — some lenders check TransUnion exclusively, and your TransUnion score won't improve through KOHO alone. For more comprehensive credit building, consider pairing KOHO (Equifax) with another product that reports to TransUnion, such as a secured credit card from Home Trust or Capital One.
KOHO Credit Building costs $10/month = $120/year. This is cheaper than most secured credit cards ($59–99 annual fee + $200–500 deposit) and similar in price to Borrowell's Credit Builder loan. The $120/year is a flat service fee — you don't earn this money back (unlike a secured card where your deposit is returned). However, the improvement in your credit score can save you thousands in lower interest rates on future mortgages, car loans, and credit cards.
Most users see their Equifax credit file created within 30–60 days of enabling credit building. Score improvement typically begins in month 2–3, with meaningful improvement (30–60 points) by month 6. Starting from no credit history (score N/A), users typically reach a 620–650 Equifax score within 6–12 months of consistent payments. Results vary significantly based on what else is on your credit file.
Yes — and this is KOHO's biggest advantage. Unlike credit cards that require a credit check, KOHO Credit Building has no credit check. Even if you've been through bankruptcy, a consumer proposal, or have a very low credit score, you can enable KOHO Credit Building as long as you have an active KOHO account. This makes it one of the most accessible credit rebuilding tools in Canada.