KOHO Financial offers a new way of earning cash back, and that is by using its prepaid cards. You can use them like any other card – deposit money and make in-store and online purchases. You must preload your prepaid cards before using them, and you can only spend the money you have in your account and nothing more.
You don’t connect them to your bank account, so they don’t affect your credit score. You can make any purchase without worrying about lowering your FICO score. This fintech company offers a three-level membership, and you can choose from three cards: Prepaid Mastercard, Premium Prepaid Mastercard, and Joint Prepaid Card. Each has unique features, and we will discuss them below.
KOHO Prepaid Mastercard Debit Card
KOHO Prepaid Mastercard – is a regular one, and it offers many perks, such as no minimum balance (you can have as little money as you want), no interest rates, Apple Pay compatibility, etc. While discussing the perks, we need to mention that you can even make an online purchase with this card; you only need to connect it to your PayPal account. Moreover, you can pay your bills and even put some money from your card into your savings account. These are some of the perks that are characteristic of all KOHO Financial cards. However, one of the most significant benefits is that you don’t have to pay an annual fee for using the card; it is entirely free. Another vital thing to mention is that you will earn 0.5% cash back with any purchase. You can use all these cards abroad, but you will have to pay a $1-$2 foreign transaction fee to use the KOHO Prepaid Card outside Canada.
KOHO Premium Mastercard Prepaid Card
KOHO Premium Mastercard – has even more perks than the regular one. With this card, you can use RoundUps, which means the app will automatically round up a certain amount of money you spent and send the excess money into your savings account. However, what makes this card unique is probably the cash-back feature. Unlike the regular one, this card offers a 2% cash back, but only for some purchases. If you eat at a restaurant, fill up the gas, or buy groceries, you will get a 2% cashback. With all other purchases, you will get a 0.5% cashback. Another unique feature of the KOHO Premium is no foreign transaction fees; you can use your card freely, anywhere in the world, without having to pay extra for every purchase. Moreover, you can get free financial coaching to help you better care for your finances.
KOHO Joint Mastercard Prepaid Card
KOHO Joint Prepaid Mastercard – allows you to share your card with someone. For example, you can use this card with your roommate, partner, friend, family member, etc. This card is a preferred choice for couples who want to have a joint account and spend their money together. However, you can also get cash back for every purchase; this cashback is usually 0.5%. You can monitor your spending and savings at all times, so you won’t have to worry about spending too much. You will also get a $20 sign-up bonus if you start using the KOHO Joint Mastercard.