Meeting unexpected expenses can be difficult when you need a fast and budget-friendly solution. Many people turn to traditional cash advances, but their steep interest rates create significant risk. KOHO’s interest-free cash advance offers a game-changing alternative.
This article will explore how KOHO’s cash advance works, its benefits, and why it may be the ideal alternative to typical cash advances.
What Is a Cash Advance?
A cash advance is a temporary borrowing option that provides eligible borrowers with quick financial relief for urgent expenses.
Credit card providers and payday lending services traditionally offer these advances but charge substantial fees and elevated interest percentages. KOHO takes a different approach by providing advances that carry zero interest.
Why Choose KOHO for Cash Advances?
Compared to traditional options, a KOHO cash advance comes with the following features:
- No interest charges on your cash advance
- Loan amounts of up to $250 interest-free
- Transparent costs, no hidden charges, such as processing or transaction fees
- Quick approval, no application process and credit checks
- Instant access to funds through the KOHO app
- Easy repayment process
How Cash Advance Works (KOHO Cover)
KOHO Cover is a feature that offers qualifying borrowers with needed cash advances to cover short-term financial gaps without resorting to payday loans and their high interest rates. It’s a temporary boost often used to repay loans, with repayments made when the next deposit arrives.
To get KOHO cover, sign up for a KOHO account and subscribe to Cover. Cash advance amounts range from $2 to $250, with no added interest.
To be eligible for a higher Cover amount, repay your monthly fees on time, use KOHO for everyday spending, pay bills from your account, and use KOHO features like Credit Building.
KOHO Cover costs start at $2 and usually vary depending on the cash advance amount. The system automatically determines your limit, and most users can access a higher limit over time.
KOHO Plans: Choosing the Right One
All KOHO plans include a virtual card and a physical one, cashback of up to 5%, and interest on your entire balance, including your Spendable. They also offer Credit Building and app features like RoundUps, Savings Goals, and Vaults.
All plans come with KOHO Cover, with the higher-tier plans offering additional benefits and perks. Users who sign up for a KOHO account with the referral code GETCASH can even get a $40 welcome bonus, making it easier to start using KOHO’s features.
Essential
The Essential plan provides a simple and flexible way to manage everyday finances. It comes with various benefits, such as easy ways to earn rewards and staying on top of your spending. Users get this plan for free when they set up a direct deposit to their account.
Extra
KOHO Extra is for users who want to get more from their savings and spending through cash back on all purchases and high-interest savings. Users looking to maximize their savings and spending may find this plan ideal for earning enhanced rewards and accessing a variety of financial tools.
Everything
The KOHO Everything plan offers a broad set of features for users who want to maximize their ability to manage their finances. Cash back on key spending categories and high interest rates on balances are among the plan’s primary features. Individuals seeking a complete financial solution may find this product ideal.
Benefits of KOHO Plans
KOHO cash advances offer several advantages over traditional options:
- Interest-free loans, with amounts of up to $250, and no interest charges
- No hidden fees, such as processing or transaction charges
- Quick approval, fast application process, and no credit checks
- Easy access to funds through the KOHO app
- Easy and straightforward repayment process
- Secure online shopping with a virtual card,
- Option to get a physical card for in-store purchases
- Up to 5% cash back on select purchases
- Interest on your entire balance, including your Spendable funds
- Comprehensive financial tools to build your credit history
- Quick signup with no credit checks
Comparison of Plans
| Feature | Essential | Extra | Everything |
| Monthly Fee | $0* | $12 | $14.75 |
| Cash Back on Groceries | 1% | 1.50% | 2% |
| Cash Back on Transportation | 1% | 1.50% | 2% |
| Cash Back on Eating & Drinking | 1% | 1.50% | 2% |
| Cash Back on Other Purchases | na (up to 5% at partners) | 0.25% (up to 5% at partners) | 0.50% (up to 5% at partners) |
| Savings Interest | 2.50% | 3% | 4% |
| Credit Building | No discount | $7/month | $5/month |
| Free Credit Score | Yes | Yes | Yes |
| Instant e-Transfers | Yes | Yes | Yes |
| Unlimited Transactions | Yes | Yes | Yes |
| CDIC Protection | Up to $100K | Up to $100K | Up to $100K |
| Up to 5% Extra Cash Back | Yes | Yes | Yes |
| No Foreign Transaction Fees | Reduced | Yes | Yes |
Other KOHO Credit Products
KOHO offers a range of credit products that help borrowers build financial stability, manage payment plans, and access funds anytime.
With completely online applications, no hidden fees, and transparent terms, KOHO makes the borrowing process simpler and more accessible.
KOHO Line of Credit
The KOHO line of credit is an alternative credit option that offers a flexible solution for financial needs without the hassle of applying at conventional banks. The product is ideal for managing unexpected expenses like home or car repairs or other financial obligations.
The application process is entirely online, and approvals and fund release are often granted on the same day. There are no origination, annual, or late fees. Since it’s a revolving credit source, users can withdraw funds without needing to reapply. Additionally, the KOHO line of credit does not impact a borrower’s credit score.
To apply, download the KOHO app, choose a plan (Essential, Extra, or Everything), and complete the application through KOHO’s partner website. Loan limits range from $1,000 to $5,000, and interest rates range between 19.9% and 34.9%.
KOHO Pay Later
KOHO Pay Later is a buy now, pay later feature that allows users to divide eligible purchases into manageable monthly payments. Users can access up to $1,000 and spread the repayments from 3-9 months.
There are no interest charges and no credit checks are necessary for approval. Once approved, funds are available in the user’s KOHO Spendable account within 24 hours.
Download the KOHO app, sign in to your account, and check your eligibility. If you qualify, you’ll find eligible transactions that can be converted into a payment plan. Select one or more purchases over $100, choose a repayment plan (3, 6, or 9 months), review the details, and confirm your plan. The funds will be deposited into your Spendable account, typically within 24 hours.
KOHO Credit Building
KOHO Credit Building is an optional feature within KOHO plans that helps users improve their credit score without the complexities of typical credit products.
Ideal for establishing or rebuilding credit history, it reports on-time payments to major credit bureaus and provides a structured process to achieve financial goals.
How KOHO Credit Building Works
Users of the KOHO Credit Building tool gain access to a dedicated tradeline exclusive for credit building, without deposit or interest payment requirements. When you make on-time monthly payments, KOHO reports it to the major credit bureaus, contributing positively to your credit profile.
To enroll, you must have a fully verified KOHO account with sufficient funds to cover the subscription fee. In the KOHO app, select “Credit Building” and follow the prompts to complete your registration.
Once enrolled, you’ll receive a $225 tradeline, separate from your available balance. Set a utilization rate to maintain a healthy credit profile.
Subscription & Features
| Feature | Details |
| Subscription Fee | $10 per month |
| Deposit Required | No deposit needed |
| Optional Service | Yes |
| Tradeline Amount | $225, separate from the available balance |
| Credit Reporting | Monthly on-time payments reported to Equifax |
| Interest Charges | None |
| Utilization Control | Users can set their utilization rate for better credit management |
| Financial Coaching | Access to financial coaches |
KOHO Credit Score and Report
KOHO’s optional Credit Building feature provides subscribers with tools to monitor and improve their credit scores. By reporting on-time payments to credit bureaus monthly and monitoring their credit scores for free, users can stay informed about their credit health and take proactive steps toward better financial health.
Free Credit Score Monitoring
Subscribers to KOHO plans gain access to free credit score monitoring, which allows them to check their credit score without affecting it. Available directly within the KOHO app, this feature helps subscribers track their credit progress, detect financial fraud, and learn about the factors that affect their overall credit health.
To access this tool, sign up for a KOHO account, pick a plan, and follow the steps in the app to set up Credit Building. When you pick a plan, you can save up to 50% on Credit Building. Users can check their credit score as many times as they want since KOHO only performs a soft check.
Conclusion
KOHO’s cash advance feature is a refreshing alternative to traditional payday loans and credit card cash advances. Its interest-free structure, automatic repayment, and integration with other KOHO financial tools make it a solid option for anyone needing short-term financial relief.
If you’re looking for a way to manage unexpected expenses without falling into high-interest debt, KOHO Cover might be worth considering.
Don’t forget to use the referral code GETCASH for a $40 bonus when signing up.
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