To the point
Discover the ABCs of managing your finances with KOHO when you arrive in Canada.
KOHO - Open a spending and savings account
When you first arrive to Canada, you’ll need to open a debit account with a payment card, so you can safely deposit your money and carry out all kinds of transactions, such as paying bills. This will also enable you to avoid using your expensive foreign payment card.
How do you find your way through all the offers from financial institutions dedicated to newcomers? Look no further, we’ve got the solution to make your life easier! In 2024, Milesopedia awarded the prize for ” best card for newcomers ” to the KOHO Mastercard Prepaid Card, which is linked to a budgeting application.
Before revealing the advantages of this card, it’s important to know the particularities of Canadian cards.
- The debit card is linked to your bank account. It allows you to pay for purchases in most shops and withdraw cash from ATMs. Your expenses are deducted directly from your bank account;
- The credit card is not linked to your bank account. It gives you the opportunity to pay for goods and services, by taking advantage of a cash advance from a financial institution or business. So you’ll need to pay them back quickly, or risk paying high interest charges.
The interesting thing about KOHO Mastercard Prepaid Cardis that it’s halfway between a debit card and a credit card. Here are the advantages:
- You only spend the money you have in your account;
- No annual fee ;
- Instant approval virtual card with one of the KOHO packages, compatible with Apple, Samsung or Google Pay ;
- Each KOHO package linked to your card entitles you to a physical Mastercard;
- 1.5% conversion fee for foreign currency transactions ;
- 1% cash back on groceries and transport;
- Compatible with all ATMs;
- Accepted at Costco;
- No minimum income required;
- No credit check.
You can get $20 free by downloading the KOHO application via this link from Milesopedia. And by entering the code MILESOPEDIA when you register.
The KOHO application is smart: it takes just a few minutes to open a spending and savings account, with automatic approval, linked to this card.
You’ll even have proof of Canadian address, with printable bank statements. Any questions? Customer support is available 24 hours a day, 7 days a week.
KOHO - Building a credit history
Credit history is essential in Canada. Simply put, it reflects your financial health, and shows how well you’re managing your money and paying off your debts on time.
Who can view your credit file? A person or company may ask to see your credit file, with your consent. Applicants include :
- A financial institution for a loan ;
- A landlord for a rental property;
- An employer for hiring formalities.
A score is assigned to you based on your repayment habits. The credit rating, also called “credit score” or ” credit score”, is a number ranging from 300 to 900.
The lower your score, the worse your credit rating, and the less likely you are to be able to take out a loan.
As a newcomer, the financial history of your country of origin is not accessible. That’s why it’s so important to build a good credit history and be visible on the Canadian credit scene.
How can KOHO help you? With our credit enhancement service, you can gradually build up your credit history. As soon as you register, you’ll get a special account called a line of credit, free of fees and interest, which will appear in your credit file.
Every month, you’ll make payments into this account and build up a positive credit history over time. KOHO, in turn, will report this payment to Equifax – one of the two credit agencies that compile your information – as a one-time payment.
KOHO offers three options for credit reinforcement, with access to a financial coach and your credit score on request.
KOHO - Save and get discounts
It’s a wise decision to set aside money for your projects or to deal with unforeseen events as soon as you arrive in the country.
Depending on the package you select, you’ll earn up to 5% interest with a KOHO High Interest Savings Account. This is a very attractive annual rate, compared to Canadian bank offers, calculated daily on your entire balance and paid monthly. This money is not blocked: you can use it according to your needs.
You’ll also love this other savings feature: rounding. Each purchase made with your card will be rounded up to the nearest $1, $2, $5 or $10 (you choose the amount). The extra money will be put into your savings account.
KOHO also offers a cash-back program on your everyday purchases. The discount percentage varies according to the package chosen. Here are the details:
| Package | Cash Back |
| Easy | 1% cash back on groceries and transportation |
| Essential | 1% cash back on groceries, transportation, food and drink 0.25% cash back on other purchases |
| Extra | 1.5% cash back on groceries, eating & drinking, and transportation 0.25% cash back on other purchases |
| Everything | 2% cash back on groceries, transportation, food and drink 0.5% cash back on other purchases |
You could also earn an additional 5% cash back at selected KOHO retail partners via the app, and up to 50% with an Essential, Extra or Complete package.
KOHO - Four packages to choose from
All packages include a 30-day free trial. During this period, you’ll be able to assess whether you’ve opted for the right package for your needs.
KOHO - Receive transfers from abroad
You’ve opened your KOHO account and now want to transfer money from your account abroad.
To make an international transfer, you can use Wise. Here’s how it works:
- Open a Wise account online;
- Deposit funds into your Wise account ;
- Use the “ pay someone else” feature;
- Wait a few days to receive your money.
You now have everything you need to manage your personal finances as a newcomer.
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