Koho Credit Building Review 2023 (Detailed Guide)

Updated On:
Saltmoney.org is reader-supported. When you buy via links on our site, we may earn an affiliate commission at no cost to you.

Koho Credit Building is Koho's new credit building product. Koho is a financial technology company based in NYC, NY. Koho announced the Koho Credit Building program on December 4th, 2015.

Koho announced that Koho Credit Building will help customers build or rebuild their credit by providing them with access to an affordable line of credit in exchange for Koho Shares. Koho announced that Koho Credit Building will be available in Q1 of 2016.

Koho announced that Koho has secured $3 million in credit line funding from Capstone Development Group to support Koho Credit Building's initial operations. Koho announced they will pay this loan back using customer deposits within 6 months of launching Koho Credit Building.

Koho announced Koho Shares will be publicly traded under Koho's ticker 'KOHO.' Koho announces that Kohos Shares are not available for purchase by US or Canadian citizens or residents.

Koho announced Koho Shares may only be purchased using cryptocurrencies, including BTC and ETH. Koho has partnered with Civic Technologies, Inc. Koho announced that Koho will be the first company to utilize Civic's Identity Protection Platform.

Koho also announced Koho will employ a two-factor authentication process for customers utilizing Koho Credit Building. Koho has partnered with TradeBlock, a blockchain data, and technology company, as an advisor to assist with their launch of the Koho Credit Building. Koho has also partnered with Chain to build the Koho financial services platform based on blockchain technology.

Features of Koho Credit Building:

Koho Credit Building has two main features that Koho boasts about. Koho is bringing something new to the credit building market by giving consumers access to credit with a short-term loan while making them pay it back in Kohos Shares.

Koho wants Koho Shares to be viewed as a stock. Koho is giving their customers the option of paying back their Kohos Shares using only Kohos Shares. Koho believes this will give Koho Customers an incentive to increase the value of Kohos Shares by providing them with access to affordable credit through Koho Credit Building.

Koho believes Koho's share as a credit payment plan will be more beneficial than another short-term loan that charges consumers high-interest rates.

Koho announced Koho Credit Building will provide Koho customers with access to an affordable line of credit without having their information accessed by a 3rd party lender who would then resell it to the highest bidder.

Koho stated that Koho Credit Building will provide Koho customers with access to an affordable line of credit, but didn't announce what their interest rate will be.

Pros and Cons of Koho Credit Building:


1. Ease to use:

Koho's website is easy to use and their app is simple to download.

2. Provides access to credit:

Koho Credit Building provides consumers with a way for building or rebuilding their credit score while not having their information resold by a 3rd party lender.

3. No hard credit check:

Koho Credit Building requires no formal credit check to receive a line of credit. Koho is using Civic Technologies, Inc.'s Identity Protection Platform to provide 'soft' identification verification via the blockchain for their customers who apply for a loan through Koho Credit Building.

4. Tracking feature:

In an email from Koho, they announced that once a customer has been approved for a loan through Koho Credit Building, their credit will be continually tracked and evaluated.

5. Koho is working to assist the blockchain community:

They are building their financial services platform based on blockchain technology.

6. Affordable:

Koho announced that the interest rate of Koho Credit Building will be lower than high-interest short-term loans currently on the market.


1. Unclear Interest Rate:

Koho didn't announce what their interest rate would be for customers utilizing their service. 

2. Unfair:

Koho Credit Building is giving their clients an option of only paying back the loan using Kohos Shares, which they can purchase for much less than what it will sell for on the market and resell at a much higher price than it was purchased for.  

3. Limited access:

Koho Credit Building is only available to the blockchain community, so people who don't have access to a cryptocurrency will not be able to utilize Koho's services.

4. No Collateral:

Without having collateral, customers could walk away from their loan and still keep their cryptocurrency if they choose not to pay back their loan.

5. No Limit:

There is no limit as to how many Kohos Shares can be purchased, which could give some customers an unlimited line of credit.

6. Security:

With the uncertainty of how Kohos Shares will be valued and traded on exchanges, there is a question of whether it's more lucrative to pay back their loan in Koho Shares or to only pay back the loan using fiat currency.

Why Koho Credit Building is best?

Koho stated Koho Credit Building will help Koho customers build or rebuild their credit. Koho said Koho Loans are beneficial to Kohos Customers in a few ways:

1. Koho Customers can gain access to an affordable line of credit without having their information sold by a 3rd party lender, that then re-sells it to the highest bidder.

2. Koho Credit Building helps build or rebuild customer credit scores because it allows customers with bad credit, to begin rebuilding their score for free.

Koho mentioned their program will be beneficial to customers because they won't have to pay the high-interest rates that typical short-term lenders charge, but didn't announce what their interest rate will be.

Koho stated that the cost of credit is much more affordable than other options available on the market, but didn't announce how much their interest rate will be. Koho stated that Koho Credit Building has no other fees, but didn't announce what their interest rate will be. Koho said the only costs to repay are the payments for shares of KOHO which you can purchase using other cryptocurrencies.

How does Koho Credit Building work?

Koho generated a white paper explaining in depth how the Koho Credit Building platform works:

Step 1: By creating an account and giving payment information, customers can apply for a line of credit.

Step 2: Underwriting selects the borrower based on risk factors such as their location and income. They also take into consideration if they have a criminal record.

Step 3: The borrower is notified of a credit line and a payment plan must be made within three days of receiving the initial contact from Underwriting for the name of a dividend to hold, amount of shares they want to buy, and an address where the shares should be sent after purchase.

Step 4: Once the borrower makes their payment the system will send a confirmation e-mail with an approval result.

Step 5: Once the customer buys the number of shares they ordered, Koho sends a confirmation e-mail to them and sends their purchased shares to a designated address.

Step 6: Underwriting matches the funds from either cash or cryptocurrency into the customer's line of credit.

Step 7: After a repayment period of 45-60 days, Koho sends a confirmation e-mail to the borrower that their account has been credited with either cash or cryptocurrency depending on what they set as their payout method. The borrowers receive a letter of intent about receiving a number of funds depending upon the number of shares they bought.

Step 8: Borrowers who receive crypto, will have their crypto transferred into their wallet instantly. If the borrower receives fiat, Koho funds are given to them once the repayment period is over and it takes approximately 1-2 business days.

Step 9: The borrower pays the agreed-upon amount of money every month for their credit line. If they pay everything according to plan, they can receive a 0% interest rate if eligible after the repayment period is over (45-60 days).

Step 10: Once the borrower makes all the payments on their credit line, they can choose to buy additional shares.

Who needs Koho Credit Building?

Koho stated that Koho Credit Building is made for those with a bad credit history. Koho also mentioned that Koho Credit Building is beneficial to those who want a lower interest rate and would like liquidity with crypto.

Koho said their program is made for those with poor credit, students, and even corporations. Koho said they are starting with the Canadian consumers first since it's one of their target markets.

How can I get Koho Credit Building?

Koho has not yet opened up for registrations. However, you can sign up to the waiting list to receive early access invitations by following this link:  https://www.kohocreditbuilding.com/. When registering make sure you enter your correct information because if it is incorrect you will not receive invitations.

For those who want to sign up, Koho Credit Building has a referral program as well as a community system where previous customers can interact with one another and share their stories of success. One person could recommend another for credit and both parties can use each other's dashboard.

Here is the link to sign up:  https://www.kohocreditbuilding.com/

Our Recommendation:

1. Avant Credit Builder Card

The Avant credit builder card allows you to build your credit by making regular monthly payments that are reported to the major credit bureaus every month. The company offers two types of payment plans, either a "standard" or an "accelerated" plan.

The standard plan requires $25 per month and only requires the account to be kept open for six months before you can begin building your score. The accelerated plan requires $50 per month and is designed for those that want to quickly improve their credit score, but it only makes payments for three months and then closes the account.

If you're applying for this card as an individual or married person (not a business), there's no annual fee and no hidden fees associated with this card. The company doesn't charge any interest and you're allowed to set up your own payment schedule that fits into your monthly budget. The card also reports the account activity to the three major credit bureaus, which allows you to build a strong payment history.

2. Petal Credit Builder Card

The Petal credit builder card helps consumers establish or re-establish their credit. The card is free, which helps ensure that you can improve your score without breaking the bank.

The Petal credit builder card comes with no annual fee and it's designed for adults who want to build a strong credit history by making regular monthly payments. The application process is quick and easy with no hidden fees.

The minimum payment due date is usually around the 20th of each month, so you won't be surprised by a large credit card amount when you open your monthly statement.

The Petal Credit Builder Card offers users a $300 initial limit and can help boost your score to 700 quickly while also securing a low-interest rate if you're approved for a card. The company works with a credit scoring system called FICO, which is the most commonly used credit score system in the United States.

3. Capital One Secured Mastercard

The Capital One Secured Mastercard is designed for those with limited or no credit history. The company offers a number of benefits including access to your FICO score, online account management tools, and 24/7 customer service support. The card is free and there's no annual fee attached with this card, which makes it easier for consumers to use it as a credit-builder tool.

The Capital One Secured Mastercard is ideal for those who are looking to improve their FICO score quickly so they can take out a traditional credit card with a lower interest rate. The initial limit for this card is low but it can help boost your score – and fast – if you pay your bill on time every month.

The Bottom Line:

Koho Credit Building is a credit building program designed for those who want to improve their score and establish a new credit history. The company offers its users several benefits including an easy application process, no hidden fees, and the ability to work with FICO scoring systems.

A quick search of Koho Credit Building shows that several customers have complained about their inability to access their financial information. Some customers have also complained about slow customer service and a difficult application process.

Michael Restiano

I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.

Leave a Reply