A smarter prepaid card with cash back, interest on your balance, and credit building—no credit check required
Rates, fees, and offers
KOHO Prepaid Mastercard® Overview
KOHO is not your typical credit card—it’s a prepaid Mastercard that gives you the spending power of a credit card without the risk of debt. You load money onto your account and spend only what you have. No credit check, no interest charges, no overdraft fees. It’s accepted everywhere Mastercard is, including Costco.
What makes KOHO stand out is that it acts more like a rewards card than a basic prepaid card. You earn cash back on everyday purchases, interest on your balance (up to 3.5%), and get access to budgeting tools right in the app. For Canadians who’ve been burned by credit cards before or are just starting their financial journey, KOHO offers a fresh start.
The optional Credit Building program is where KOHO really shines for our audience. For a small monthly fee, KOHO reports your payment activity to Equifax, helping you build a positive credit history without taking on any debt. Users report an average 31-point increase in their credit score within 3-4 months. It’s credit building on training wheels—and that’s exactly what many people need.
Top features & our take
🔒No Credit Check Required
- KOHO performs a soft assessment, not a hard credit check—your score won’t be affected when you apply.
- Perfect for people with no credit history, damaged credit, or newcomers to Canada who can’t get approved for traditional cards.
- Anyone who’s a Canadian resident and of legal age in their province can apply. No minimum income requirement.
📈Optional Credit Building Program
- KOHO sets up a small line of credit and reports your on-time payments to Equifax—helping you build credit history without debt.
- Users see an average 31+ point score increase in about 3.5 months.
- Costs $5-$10/month depending on your KOHO plan. Includes access to financial coaching.
- Guaranteed approval for the credit building program—no risk of rejection.
💰Earn Interest on Your Balance
- Unlike most prepaid cards, KOHO pays you interest on the money sitting in your account.
- Earn 2% (Essential), 2.5% (Extra), or 3.5% (Everything) on your entire balance—better than most savings accounts.
- Interest is calculated daily and paid monthly. Your funds are CDIC insured.
- It’s like having a spending account and savings account in one.
🎁Cash Back on Everyday Spending
- Earn 1-2% cash back on groceries, dining, and transportation depending on your plan.
- Get up to 6.5% extra cash back at select partner merchants.
- Cash back is automatically credited to your account—no points to redeem or hoops to jump through.
- Even the free Essential plan (with qualifying deposit) gives you 1% back on essentials.
🛡️No Debt Risk with Prepaid Model
- You can only spend what you load onto your KOHO card—impossible to go into debt or pay interest on purchases.
- No overdraft fees, no NSF charges, no surprise interest charges.
- Great for people who’ve struggled with overspending on traditional credit cards.
- Real-time spending notifications and budgeting tools help you stay on track.
How KOHO can help you improve your credit score
KOHO’s Credit Building program works differently than a secured card. Instead of requiring a security deposit, KOHO opens a small line of credit on your behalf and automatically makes payments that get reported to Equifax. You don’t actually use this credit line for purchases—it’s purely a credit-building mechanism that runs in the background while you use your prepaid card normally.
Because the payments are automatic and guaranteed, there’s zero risk of missing a payment or damaging your credit. It’s credit building with training wheels. KOHO users report seeing their scores improve by an average of 31 points within a few months—enough to start qualifying for entry-level credit products.
The key to success with KOHO is consistency. Keep your account active, use the card regularly for everyday purchases, and let the Credit Building program do its work in the background. Within 6-12 months, you should have enough credit history to start exploring traditional credit cards with better rewards. Think of KOHO as your stepping stone, not your forever card.
Pros and Cons
Pros
- ✔ No credit check means anyone can get approved—perfect for newcomers or credit rebuilders
- ✔ Earn up to 3.5% interest on your balance, beating most savings accounts
- ✔ Optional credit building reports to Equifax, helping you build credit without debt risk
- ✔ Cash back on everyday purchases (1-2% on groceries, dining, transportation)
- ✔ Prepaid model makes overspending impossible—spend only what you load
- ✔ Free e-Transfers and budgeting tools built into the app
Cons
- ✖ Annual fee of $48 on Essential plan if you don’t deposit $1,000/month
- ✖ Credit Building program costs $5-10/month extra depending on your plan
- ✖ Only reports to Equifax, not TransUnion—building a thin credit file
- ✖ 1.5% foreign transaction fee on Essential and Extra plans
- ✖ Lower cash back rates compared to premium traditional rewards cards
Who can benefit — and who should look elsewhere
Who can benefit from this card?
- People with no credit history who need to start building credit from scratch—newcomers to Canada, young adults, or anyone who’s only used cash.
- Canadians rebuilding after bankruptcy, consumer proposals, or a history of missed payments. KOHO doesn’t judge your past.
- Anyone who’s overspent with credit cards before and needs a safer option. The prepaid model makes debt impossible.
- People who want their money to work harder—earning interest and cash back while building credit is rare for this audience.
- Those who prefer app-based banking with real-time notifications and budgeting tools to stay on top of spending.
Who should look for a different product?
- People who already have good credit (670+) and can qualify for premium rewards cards with better cash back rates and no annual fees.
- Anyone planning extensive international travel—the 1.5% foreign transaction fee adds up. Consider the Everything plan or a no-FX card instead.
- Users who want credit reported to both Canadian bureaus. KOHO only reports to Equifax, not TransUnion.
- Those who need the ability to carry a balance for emergencies—KOHO is prepaid, so you can only spend what you have.
How to apply
- Download the KOHO app from the App Store or Google Play and create your account. You’ll need your email, phone number, and some basic personal information.
- Verify your identity by providing your SIN (Social Insurance Number) and a piece of government ID. This is a soft check only—it won’t affect your credit score.
- Choose your KOHO plan: Essential (can be free with qualifying deposits), Extra ($12/month), or Everything ($14.75/month). Start with Essential if you’re unsure.
- Get instant access to your virtual card in the app. You can start using it for online purchases immediately while your physical card ships.
- Add the optional Credit Building program from the app’s home screen. This is what reports to Equifax and helps build your credit history—highly recommended for our audience.
FAQ
Is KOHO a real credit card or just a prepaid card?
KOHO is a prepaid Mastercard, not a traditional credit card. You load money onto it and can only spend what’s in your account. It’s accepted everywhere Mastercard is accepted, but there’s no credit line—you’re spending your own money. The Credit Building program is separate: it creates a small credit line behind the scenes to build your credit history, but you don’t actually use that for purchases.
Will applying for KOHO hurt my credit score?
No. KOHO performs a soft assessment when you sign up, which doesn’t appear on your credit report or affect your score. This is one of the big advantages—you can get approved without any credit check, and there’s no hard inquiry to temporarily ding your score.
How does the KOHO Credit Building program work?
KOHO opens a small line of credit on your behalf (you don’t use it directly). Every month, KOHO makes automatic payments on this credit line and reports them to Equifax as on-time payments. This builds your credit history without any action required from you—it runs in the background while you use your prepaid card normally. Users typically see a 31+ point score increase within a few months.
Can I get the Essential plan for free?
Yes. The Essential plan has a $48 annual fee, but it’s completely waived if you set up a recurring direct deposit (like your paycheck or government benefits) or deposit at least $1,000 into your KOHO account each month. If you meet either condition, the plan is effectively free.
Does KOHO report to TransUnion or just Equifax?
Currently, KOHO’s Credit Building program only reports to Equifax. It does not report to TransUnion. This means you’ll be building credit history with one bureau but not the other. For most purposes this is still helpful, but if you want credit history at both bureaus, you may eventually need a product that reports to TransUnion as well.
Conclusion
KOHO fills a unique gap in the Canadian market: it’s a prepaid card that actually helps you get ahead financially. You earn interest on your balance, cash back on purchases, and can build credit—all without any credit check or risk of debt. For Canadians who’ve been locked out of traditional credit or who need a fresh start, KOHO is one of the best options available.
The Credit Building program is the standout feature for our audience. Yes, it costs extra ($5-10/month), but the ability to build credit without taking on debt or risking late payments is valuable. Combined with the prepaid safety net and genuine rewards, KOHO offers something most credit-building products don’t: a card you actually want to use every day.
If you’re starting from zero or rebuilding after a rough patch, give KOHO a serious look. Start with the Essential plan, set up direct deposit to waive the fee, and add the Credit Building program. In 6-12 months, you’ll have a real credit history and can start exploring your next card. KOHO is your launchpad.
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