These days, people are over credit cards and their high-interest rates. They want a way to make purchases without accumulating debt and significant fees. That’s where KOHO comes in.
As a prepaid card, you can control your spending and stay within budget. It sounds like a great idea, but what is the catch with KOHO?
The thing is, there really isn’t one. KOHO is exactly what it says it is. There aren’t hidden fees, and the amount you save and spend is within your control.
If you’ve struggled in the past with poor credit and need a way to keep track of your finances, the KOHO card is a solid choice.
Want to learn more about KOHO? Read on as I explain the benefits of this prepaid card.
KOHO’s unique reloadable prepaid card gives its customers the ability to purchase items while saving money.
As a hybrid debit/credit card, KOHO is the best of both worlds. There are no added fees and interest charges, and the best part is you can only spend what you load onto the card.
That helps control overspending and keeps your finances on track.
Once you set up an account online, all you need to do is fund your card. You can do that by either Interac e-Transfer from an existing bank account or set up a payroll direct deposit with your employer.
After that, use your card whenever you want. You can make purchases online or in person.
KOHO is accepted anywhere Mastercard is. You can set savings goals and accumulate cashback on all your purchases.
KOHO lets customers budget, spend, and save – all in one app. Credit cards can get their users into trouble. With high credit limits, it’s easy to spend more than you can afford.
Those unnecessary purchases come with high-interest rates and outlandish fees, digging customers into an even deeper financial hole.
Instead of falling for that trap, KOHO users can sign up for a free reloadable prepaid card that helps give them control. The best part is that there aren’t any fees.
The basic KOHO card offers cashback rewards on all purchases, as well as a savings account where you can set specific goals.
You can go a step further and enroll in KOHO’s RoundUP program and roundup your purchases to the next $1, $2, $5, or $10 and sock it away into your savings.
Another impressive feature is that your account can earn interest if you set up payroll direct deposit.
The interest rate is higher than most big banks, making it an easy way to grow your money.
Because KOHO isn’t a credit card, it won’t help improve your credit score.
However, they do offer a separate Credit Building feature for $7/month. If you subscribe, keep making purchases, and KOHO will report your activity to the major credit bureaus, helping you increase your credit score in just a few months.
KOHO can link up with Apple Pay, so you don’t need to have your card handy if you want to make a purchase.
One big advantage to KOHO is its financial coaching. You can create a budget and track your spending in real-time. You can get tips and tricks on debt repayments and savings.
While KOHO’s no-fee account offers you all kinds of perks, the KOHO Premium account takes it a step further.
The account charges an $84 annual fee or $9 per month. The paid subscription increases your cashback rewards on transportation, grocery, and restaurant purchases.
In addition, KOHO Premium users can take advantage of price match guarantees and financial coaching. One of the biggest benefits to the paid account is that you won’t get charged foreign transaction fees.
These fees can range anywhere from 1% to 2.5% and can really make a dent in your pocket if you frequently use foreign currency.
The KOHO app is user-friendly and makes it easy to keep track of your finances. You can set up payroll deposits, bank transfers, and bill payments.
In addition, you can check on your balance, set up your savings goals, and even create your budget.
If you need to reach customer service, just use the in-app live chat, making it easy to get answers to questions right away.
KOHO partnered with the Peoples Trust Company to hold all funds. The Peoples Trust is a federally regulated institution. As a member of the Canada Deposit Insurance Corporation (CDIC), deposits are generally insured for up to $100,000.
In addition, KOHO is backed by some of the largest financial institutions, including Greyhound Capital and the National Bank of Canada.
Final Thoughts – What is the catch with KOHO?
The KOHO reloadable card is exactly as advertised. With no fees, cashback rewards, and ways to budget and track your money, this card is an excellent option for those looking to stay on top of their finances.
If you’re looking for more options, check out these top virtual credit cards in Canada.