The KOHO Card is halfway between a debit card and a credit card:

• Like the debit card, the KOHO Mastercard Prepaid Card allows you to spend only what you have in your account
• Like the credit card, the KOHO Mastercard Prepaid Card offers you rewards (in the form of cashback)

This type of card will not affect your credit score: getting one will have no impact. However, it won’t help you improve your credit score either.

KOHO prepaid cards have some things in common:

• Accepted worldwide through the Mastercard network (including at Costco)
• Cash back on some purchases
• Possibility of automatic savings
• Earn 3% to 5% interest on your available balance
• No interest charges on your purchases
• No fees at merchants charging fees to credit cardholders
• Possibility to buy online
• Bill Payments
• Joint accounts possible
• Available on Apple Pay

KOHO has increased its savings rates to 3% on its free plan and 5% on all its paid plans.

Here’s how to save:

• Choose the KOHO plan that’s right for you;
• Add funds to your new account;
• Join Earn Interest in the app, then start earning money.

Both KOHO Mastercard prepaid cards offer an automatic savings program.

Purchases made with your KOHO card are rounded to the nearest $1, $2 or $10 (you choose the amount). For example, if you activate the automatic savings program and purchase $2.25, $0.75, $1.75, $2.75 or $7.75 (whichever you choose), it will automatically be set aside for you!

You can see in your KOHO app how much you have saved at any time. Note that this money can be accessed anytime: if your available balance is less than the amount of the purchase you wish to make, the funds will be withdrawn from your savings account.

KOHO Mastercard prepaid cards offer a cash-back program on your everyday purchases. You’ll see the cash back in your Savings tab within 1-2 business days of the original authorized purchase.

The cash back you earn depends on the KOHO plan you choose.

For example, with Altitude Sports, you can get 4% extra cash back. This is in addition to the base rate, for a total of 4.25% cash back!

With Harvey’s, it’s 3% extra cash back. With the Everything plan, you’ll get 5% at Harvey’s, in addition to the 2% cash back on restaurants!

By opting for a KOHO Essential, Extra or Everything plan, you’ll be able to access an online shopping portal, directly via your KOHO app, to earn up to 50% cash back on your purchases.

All you have to do is click on the merchant’s link directly in the KOHO application before making your purchase. You will then receive your cash back within 30 to 60 days.

There are over 1,000 brands in the KOHO online shopping portal, some of which offer up to 50% cash back!

Usually, prepaid cards do not report your account activity to credit bureaus such as Equifax and Transunion. To counter this, KOHO has a credit-building option.

For $10 a month for 6 months, you can subscribe to KOHO Credit Building.

When you sign up, Koho will deposit $225 of dedicated credit enhancement funds into a separate account from your expenses (so you won’t have access to it). Each month, Koho will recover $75 of these dedicated funds and report it to Transunion as a positive action for your credit score.

For clarity, your total balance on KOHO will not change when KOHO adds the dedicated funds. Your only job is to make sure your regular account contains $10 each month to cover the subscription fee, and KOHO will do the work of establishing your credit score behind the scenes.

This credit building feature operates on a six-month cycle (so you can subscribe once every six months). You must already have a KOHO Mastercard Prepaid Card to benefit from it.

Do you want to check your credit score? KOHO gives you access to this information free of charge. Simply create a KOHO account and take advantage of a 30-day trial period.

Here’s how it works:

• Download the KOHO application, then create an account;
• Choose the Essential, Extra or Everything plan for a free 30-day trial;
• Discover your credit score with Equifax.

Please note that your score will be updated once a month. After the free trial, you’ll need to pay the monthly subscription fee for one of the plans to obtain your credit score.

KOHO charges a monthly fee for the KOHO Mastercard Prepaid Card according to the plan chosen.

There are no interest charges, insufficient funds charges or wire transfer fees. Here is a summary table of the other costs:

The Essentiel package is available free of charge to new users, provided they perform one of the following two actions:

• Receive a recurring direct deposit such as a paycheck or government benefits;
• Each month, transfer at least $1,000 to your KOHO account.

Three types of loading are possible:

• Payroll remittance
• e-Transfer
• Wise

Details of the limits for an Essential account are here, and for an Extra account here.