If you are Canadian, you’ve likely heard of the KOHO credit card. I’ve been using it for over three years now, and in this review, I’ll share what I like and don’t like about it.
The KOHO Prepaid Mastercard is among the best prepaid cards in Canada, offering the rewards of a traditional credit card while providing the convenience of a smart money app, all without any monthly or annual fees.
With the KOHO credit card, you can enjoy cashback rewards of up to 2% on all purchases and transportation expenses, earn up to 6% cashback when shopping online or in-store at selected partner outlets, and even build your credit history for only $10 per month.
In this comprehensive review of the KOHO credit card, we will delve into its features, advantages, and potential drawbacks, helping you determine whether it aligns with your specific financial goals and preferences.
Our Take on KOHO Credit Card Review
KOHO is a Canadian financial platform offering a free spending and savings account with a prepaid Mastercard. Users can budget, spend, and save efficiently, enjoying instant cashback and interest. The mobile app provides real-time spending insights without fees or interest.
It operates like a chequing account, allowing deposits and spending, while offering cashback on purchases like a credit card. However, users spend their own money, not credit, encouraging responsible spending and saving, with users typically saving around 7% of their deposited funds.
- No monthly or annual fees
- Accepts e-transfer from anyone
- Amazing savings, budgeting and roundup tools
- Allows you to create automated savings goals
- Earn 1-5% cashback on all your purchases
- Direct deposits from your employer
- Earn interest on your money
- Only offers prepaid cards
- Poor customer support
- No mobile check deposit
- It does not allow you to lock your savings account
What is KOHO?
KOHO is a free spending and savings account designed to allow Canadians to budget, spend and save like a pro while enjoying instant cashback and interest on their account.
It offers a prepaid Mastercard and a mobile app that gives you all the spending power without fees or interest. The mobile app is integrated with your app and shows you real-time insights about your spending.
KOHO works like a chequing account with no monthly fees. Like a chequing account, you deposit money into your KOHO account and spend it whenever necessary. And like a credit card, you can use the KOHO Mastercard wherever Mastercards are accepted and get cashback on your purchases.
However, in contrast to credit cards, you are using your money and not credit. You must be careful with your spending so you can save more money. An average KOHO user saves about 7% of the money they loan into their KOHO account.
How Does KOHO Work?
KOHO is quite simple to use. Just add funds to your KOHO account through your e-transfer from your regular bank account, loan from your existing Mastercard or Visa debit, or ask your employer to deposit your paycheque into your KOHO account directly.
Then, you can use the KOHO card to make purchases, in person or online, like with other debit or credit. You can use your KOHO card to pay for groceries, coffee, or monthly bills, wherever Mastercard is accepted.
KOHO runs on the Mastercard network, so merchants will treat your KOHO card like a normal credit card transaction.
Key Features of KOHO
Although KOHO is not a credit card and cannot impact or build your credit score, it has some excellent features that make it a top option for many Canadians. Here are some of the top features:
1. Free
KOHO card doesn’t require any annual fee to sign up. This makes it cheaper than other regular chequing accounts with a monthly fee. There are no card replacement fees, no account fees, and Interac e-Transfers and ATM withdrawals are free.
2. Smart Savings
With KOHO, you can earn saving interest on your account balance, up to 2.00%. However, this depends on your version, the free KOHO Easy or the paid versions (Essential or Extra).
You can set savings goals and automatic deposits to ensure you meet your financial targets promptly. Also, it’s free.
3. Round-up
You can supercharge your savings goals by allowing KOHO to save every time you make a purchase. You can set your KOHO account to round up every $1, $5, or $10 and save the difference towards your financial goals.
4. Mobile App
KOHO offers a stellar mobile app that you can use to get real-time insights into your KOHO bank account. You can use the app to check your account balance, reload your KOHO card, transfer money, or set up automatic bill payments.
5. Credit Building
When you sign up for the KOHO Credit Building ($10 monthly), KOHO allows you to access financial coaching to help you build your credit. KOHO provides coaching on various topics, like debt repayment, budgeting, and savings.
6. Apple Pay
KOHO’s Apple Pay allows you to link your iPhone to your KOHO card and make in-store purchases directly from your phone. This feature is very useful if you forget your wallet or don’t enjoy carrying cards.
7. Joint Accounts
KOHO allows you to open a joint account with your partner or family members to earn rewards faster and take advantage of all KOHO’s perks, like high-interest savings accounts and free Interac e-Transfer.
KOHO Subscription Plans
The KOHO bank offers three subscription plans and allows you to choose anyone that suits your financial needs.
1. Easy: This KOHO subscription plan is free. It offers 1% cash back on groceries, services and bills and 3% interest on your KOHO balance. It allows access to Credit Building at $10 monthly, RoundUps, and Virtual card, and offers extra cashback at selected merchants.
2. Essential: This plan comes at $4 monthly and $48 annually, with a 30-day free trial. It offers 1% cash back on groceries, services, and bills, and 5% interest on your KOHO balance.
It allows access to Credit Building at 30% discount price, RoundUps, and Virtual card, and offers extra cashback at selected merchants.
3. Extra: This plan comes at $9 monthly and $84 annually, with a 30-day free trial. It offers 2% cash back on groceries, services, and bills, and 5% interest on your KOHO balance.
It allows access to Credit Building at 30% discount price, RoundUps, and Virtual card, and offers extra cashback at selected merchants. It has zero FX fees and also offers 1 free international withdrawal monthly.
4. Everything: This plan comes at $19 monthly and $228 annually, with a 30-day free trial. It offers 2% cash back on groceries, services, and bills and 5% interest on your KOHO balance.
It allows access to Credit Building at 50% discount price, RoundUps, and Virtual card, and offers extra cashback at selected merchants. It has zero FX fees, real-time e-transfers, and also offers 1 free international withdrawal monthly.
Pros of KOHO Credit Card
- No monthly or annual fees
- Accepts e-transfer from anyone
- Amazing savings, budgeting and roundup tools
- Allows you to create automated savings goals
- Earn 1-5% cashback on all your purchases
- Direct deposits from your employer
- Earn interest on your money
Cons of KOHO Credit Card
- Only overs prepaid cards
- Poor customer support
- No mobile check deposit
- It does not allow you to lock your savings account
How to Sign up for KOHO
Signing up for KOHO is relatively easy and takes less than five minutes. Simply visit the official website of the KOHO bank and click ‘Get KOHO’.
First, you enter your email address and password to create your KOHO account. If someone referred you to KOHO, enter the referral code on the first screen to earn you bonus cashback.
Next, you will be required to enter basic information, like full name, occupation, gender and phone number. Complete this and click “submit”.
The three KOHO card’s colour schemes will be displayed on the next page. Make your choice and confirm your home address as it appears on your photo ID, so they can mail your KOHo card to you.
When you finish creating your account, KOHO will send you a link to their app in the Google Play Store or App Store. Your account setup will be complete when you download the app and log in.
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Is KOHO Safe & Legit?
Yes. KOHO is safe and legit. Though KOHO isn’t a real-deal bank, many mechanisms are in place to safeguard your money.
KOHO bank partnered with Peoples Trust, a federally regulated bank, to hold any money you load into your KOHO card. If anything ever happens to KOHO, your money is safe, and you can access it through Peoples Trust.
Also, your funds are eligible for CDIC insurance if you place them in interest-bearing accounts.
Are you looking for a way to manage your finances better? If so, we have the perfect solution for you. KOHO cards are a great way to manage your money and track spending.
This KOHO review is positive that KOHO is 100% safe to use.
Is the KOHO Worth it?
KOHO card is designed for those with bad or no credit who want to save on every purchase without paying a monthly fee. You can use your KOHO card anywhere in Canada and enjoy attractive cashback rates like any other credit card.
The fact that you can make purchases online using your KOHO card also makes it attractive to those who love the idea of shopping online and want to pay as little as possible.
The only disadvantage of the KOHO card is that they don’t report to your credit bureaus, which doesn’t help your score.
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KOHO Reviews
Before making a decision on the KOHO credit card, you can take a look at what others are saying about the KOHO Mastercard. We compiled these KOHO reviews from different online review platforms.
“There have been many complaints about missing money. I’ve used them since inception and never had that problem, or never noticed it. I highly doubt money is going missing, very rarely the app will display an incorrect balance though. Support has gone down hill since inception though. Until such time as the EQ Bank Card can be used for recurring payments, I’ll keep using KOHO.” ~ Anonymous.
“Koho is only “good” if you have bad credit. If you have good credit you are better off with going with another bank like simplii or tangerine.” ~ Anonymous.
“What don’t you like about it? There cash back options and interest rate are top tier so I’m quite tempted. Have good credit fwiw” ~ Anonymous.
“It’s Legit. It’s prepaid Mastercard. You will need to top up before using it. Their customer service is good from my experience. I would not use it as saving account and will just put the money that I will spend on that month.” ~ Anonymous.
Final Thoughts on KOHO Review
KOHO is a revolutionary fintech company that has disrupted the traditional banking industry in Canada by providing an alternative to the typical chequing accounts and credit cards.
With no monthly or annual fees, amazing savings, budgeting and roundup tools, and the ability to earn cash back on purchases, KOHO offers Canadians an easy and transparent way to manage their finances.
KOHO’s innovative features, such as smart savings, round-up, joint accounts, and Apple Pay, have made it a top option for many Canadians.
Overall, if you’re looking for a flexible and cost-effective way to manage your finances, KOHO is definitely worth considering.
FAQs on KOHO Review
Where Can I Use My KOHO Card?
You can use your KOHO card at restaurants, car rentals, hotel reservations, and any place that accepts Mastercard. Ensure you select your form of payment as “credit.” You can also have your KOHO card registered as a credit card by the merchant when purchasing.
How Much Does KOHO Cost?
KOHO charges no monthly or annual fees for its regular premium or joint account.
Is KOHO a Good Card?
Absolutely. KOHO card combines debit and credit card features to give you the best experience. You can earn 0.5% cash back on the free KOHO card and 2% cash back on the paid (Essential and Extra) card. This is a cost-effective way of cutting your expenses and increasing your savings.
Is KOHO a Credit Card or a Debit Card?
KOHO is neither a credit card nor a debit card. Instead, KOHO offers reloadable Prepaid Visa cards that combine some debit and credit card features to give you the best experience.
Does KOHO Build Credit?
Yes, KOHO builds credit scores through its Credit Building tool. With a monthly subscription of $7, KOHO helps you improve your credit score within 6 months. All you need is to subscribe to the Credit Building, and KOHO will do the hard job for you by reporting your progress to a credit bureau.
How Long Does it Take to Get a KOHO Card?
KOHO issues credit cards within 10 days of application.
If you have questions about KOHO credit cards, drop them in the comment section.
