Is KOHO A Real Credit Card? Learn if It’s Right For You (2024)

Are you tired of overspending when you use your credit card? Incurring those outrageous interest charges probably makes you want to cut up that card forever. Maybe you should.

There are other alternatives out there besides credit cards. Companies like KOHO are trying to change the way you spend and save your money. But the question is, is KOHO a real credit card?

KOHO isn’t a credit card. It’s more like a blend of a debit and credit card. It’s a reloadable Mastercard that lets you make purchases online or in-store.

In addition, it has no annual fee, and you can earn cashback rewards while managing your spending.

Is KOHO A Real Credit Card

How Does the KOHO Prepaid Mastercard Work?

The KOHO prepaid card has all the advantages of credit and debit cards. Users can load money onto the card and use it anywhere Mastercard is accepted. The major benefit of reloadable cards is that you have control of your spending.  

Unlike credit cards, you can’t use a KOHO prepaid card to buy items out of your budget. If you don’t have the money on the card, you can’t make the purchase. This means no overspending and incurring skyrocketing interest charges.

You can load up your card through Interac e-Transfers or a payroll direct deposit. You can also link your card to your digital wallet (Apple Pay or Samsung Pay).

KOHO Card Features

KOHO offers three different accounts – KOHO, KOHO Joint, and KOHO Premium. The first two have no monthly fees. But KOHO Premium does.

Koho Open an Account

In addition to no monthly fees, you can earn cashback on all your purchases and extra cashback at certain retailers. Using the KOHO card means no transaction fees, so you don’t have to worry about Interac e-Transfers or ATM withdrawals.

The only drawback to this card is that you’re on the hook for foreign transaction fees, usually around 1.5%.

Upgrading to the KOHO Premium card might mean a monthly fee, but it also eliminates foreign transaction charges. That’s something to consider if you’re a frequent traveller – it might be worth paying extra.

The Premium account also offers higher cashback rewards on groceries, transportation, and restaurants, as well as working with a financial coach.

Other Benefits

Is KOHO A Real Credit Card

KOHO offers more than just prepaid cards. They have added services that can help you reach your financial goals.

You can check out my full Koho review here.

Earn Interest

If you set up direct deposit, you’re eligible to earn interest on your account. The interest rate can vary, but it’s usually higher than what you could earn with most big-name banks.

Build Your Credit

KOHO’s Credit Builder program is an innovative way to help its users increase their credit scores. If you’ve struggled in the past with poor credit, signing up for a prepaid card probably makes sense.

It helps you avoid racking up unnecessary purchases, plus you won’t have to pay interest on anything.

The Credit Builder program helps you improve your credit score. For $10/month, the payments and progress you make on your current bills and debt will be reported to one of the credit bureaus.

KOHO promises an improved score in just six months.


Looking to sock away extra cash? Try the RoundUp feature. Any purchase you make can be rounded up to the nearest $1, $2, $5, or $10, and stash that extra change into your savings account.

Manage Your Money

The KOHO app makes it easy for you to track where your money goes. You can create a budget and see your spending habits in real-time, making it easy to stick with your financial goals.

Premium users have access to a financial coach that can help provide solid advice and tips and tricks to make budgeting a little less stressful.

Is a Prepaid Card Worth It?

Is KOHO A Real Credit Card -Is a Prepaid Card Worth It?

Prepaid cards are a solid alternative to those with poor credit struggling to secure a credit card. But it’s not just for them. Prepaid cards are great for anyone looking to keep on top of their spending and monitor their finances closely.

Because you can load a certain dollar amount onto the card, you control what you spend. This makes it harder to purchase frivolous items and can help you stay on a budget. For those reasons alone, prepaid cards are worth it.

However, there are other reasons to consider making the switch. You can earn interest – at a higher rate than most banks. Plus, you can add extra money to your savings account just by accessing the RoundUps feature.

In addition, KOHO users earn cashback on all their purchases – even more, if you’re a KOHO Premium user, all those rewards can add up.

Prepaid cards certainly have their benefits, especially if you’ve struggled with credit problems in the past or are looking to keep a close eye on your finances now.

Final Thoughts

KOHO isn’t a credit card. Instead, it’s a cross between a credit and debit card. All of the benefits from each, like making purchases online or in-store, and earning rewards, are all part of the KOHO reloadable prepaid card.

With no fees and ways to manage your spending, it’s a solid alternative to other options out there. If you’re looking for other choices, check out these best virtual credit cards.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Read about how he quit his 6-figure salary career to travel the world here.

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