When you're looking to build credit, it can be difficult to know where to begin. You'll need a service that will report to all three of the major credit bureaus, doesn't require a credit check, and doesn't shake up your monthly expenditures too heavily.
Kovo Credit Builder provides all these things, but there are some caveats you should watch out for. Business Insider's personal finance team compared Kovo Credit Builder to the best credit-builder loans and found it to be a standard offering that costs more than similar products.
Keep reading to see if it's the best credit builder account for you.
$240 in $10 monthly installments
- Reports to three major credit bureaus and Innovis, the fourth-biggest credit bureau
- No additional fees
- Low monthly payments
- No credit check
- You don’t get your money back at the end of the payment period
- Likely to cost more than many credit-builder loans
- Apply for the Kovo Installment Plan to buy Kovo Courses, and make on-time monthly payments.
- $10/mo for 24 months. No early payment penalties.
- No late fees.
- Build credit and earn rewards
- No credit check
- Instant approval
- 0% APR and $0 fees
- Your payment performance is reported monthly to the three major credit bureaus and Innovis.
- Get your FICO® Score and see your credit score journey progress every month.
- Kovo is available in all 50 states as well as DC.
What is Kovo Credit Builder?
Cost: $240 in $10 monthly installments
Kovo is a public benefit corporation that aims to help its users build credit. You pay a monthly $10 for 24 months, all of which Kovo reports to the credit bureaus. In exchange for the $240 you give Kovo, you'll gain access to interactive educational resources and credit monitoring.
With $10 monthly payments, Kovo is easy to keep up with from month to month.
How Kovo Credit Builder Works
Typically, a credit-builder account acts like a savings account. You make monthly payments to your creditor, and they report your monthly payments to the credit bureaus. Once your payment is settled, you get a portion of your money back minus any interest they charged on the account.
Features of Kovo
Kovo works more like a buy now, pay later product than a credit-builder loan. Signing up for Kovo gives you access to a library of interactive educational resources that range from building your personal brand to Google Sheets tutorials, which Kovo claims are worth $400. You're essentially buying this library of content on credit for $240, which you pay back in $10 installments.
Personal Growth Tools + 24 Months ID Monitoring
All users with an active installment account will not only receive personal growth tools, but also 24 months of ID monitoring. This includes dark web, high-risk transaction, and compromised credential monitoring, with real-time alerts. This continuous ID monitoring helps customers stay safe from data breaches and potential identity theft. If you're looking for monitoring without credit-building, see Business Insider's list of the best ID theft protection services.
Credit Boosts
Eligible customers with 4 on-time payments will gain access to a single-purpose credit line with a $500 limit to use at Kovo. This also includes a high-deductible $ 1 million ID Fraud Insurance policy with 24/7 ID Theft Resolution services. This revolving credit account provides customers an additional way to build credit on top of their installment credit account.
The addition of a high-deductible insurance policy with resolution services protects customers from getting off-track on their credit-building journey. Paying down your revolving credit account in a timely manner helps continue building payment history, keeps credit utilization low, and builds credit for a longer period of time.
Kovo also provides an opportunity to earn some of that money back through its rewards program. Whenever you apply for credit among the offers on Kovo's website, it rewards you through gift cards. The offers vary by state, which you can peruse before you sign up for the service. The amount you can earn comes out to 1% of the loan's value.
The max amount you can earn depends on the type of loan:
- Personal loan: $500 maximum
- Student loan: $250 maximum
- Auto loan: $150 maximum
- Credit card: Flat $75
Note: Rewards are available in all 50 states (plus D.C.)
Benefits of Using Kovo
Kovo Pros and Cons
Kovo Credit Builder has some features we like. It reports payments to all three major credit bureaus — Experian, Equifax, and TransUnion — as well as Innovis, a fourth bureau. Applying does not trigger a hard inquiry on your credit report.
Another important feature is that Kovo is designed to foster responsible credit use. By making on-time payments and seeing your credit score improve over time, users learn the value of credit and the hard work it takes to maintain it.
That said, Kovo is not without its downsides. Its biggest downside is that you don't get your money back. When you finish your payments with another credit-builder, like Self Credit Builder Account, you get most of your money back, minus interest and fees.
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Why Credit Building is Important
A strong credit history, reflected in good credit scores, will allow you to qualify for lower interest rates and fees, freeing up money to set aside for emergencies, retirement, and other smaller unexpected expenses. A strong credit history can also make it easier to rent an apartment, obtain lower insurance rates and increase employment opportunities. Paying your bills on time and building a good credit score can lead to financial freedom and peace of mind.
Potential lenders check your credit history any time you want to open a new financial product, credit card, or loan. They tend to only approve applicants who meet certain credit requirements, such as having a good or excellent credit score.
Landlords also review credit when deciding who to rent an apartment to and some employers may even check your credit report for signs of financial responsibility, like on-time payments and low credit utilization, before extending a job offer.
If you don't have good credit, it's worth it to work on raising your score. You may miss out on a low interest rate mortgage, personal loan, or credit card and find yourself paying more over the course of your loan. But if you build a good credit score, you can save money on interest payments, especially now in a high-interest rate environment.
Getting Started with Kovo
The enrollment process
With no credit checks and instant approval decisions, Kovo is a very easy sign-up. You'll need to be prepared to provide your Social Security number, address, birthday, and your monthly income. While Kovo doesn't require a credit check, there is a monthly income requirement.
Once approved, which happens quickly, you'll be presented with a contract stipulating that you agree to pay the full $240 in $10 installments over 24 months. The contract is relatively short and includes important information to understand. Make sure you read through it before agreeing to the terms and conditions.
Kovo vs. Other Credit Building Tools
We compared Kovo to Self Credit Builder Account, one of the credit-builder loan providers we included in our guide for the best credit-builder loans. Self offers monthly payments as low as $25 over 24 months.
However, despite the difference in monthly payments, you'll likely end up paying more for Kovo than a service like Self. Finishing your payments with Self means you get most of your money back, minus interest and fees. Its $25 monthly plan ends up costing you $89 total, assuming you make all your payments as agreed.
However, if your priority is a credit builder account with low monthly payments, Kovo can be a very good option.
Read our full Self credit builder review.
Real user experiences with Kovo
Current users are finding success with Kovo. Out of nearly 500 Trustpilot reviews, Kovo received an average of 4.9 stars and 93% were five stars out of five. Kovo is responsive to customer complaints, although when reaching out directly to the customer to resolve the complaint, it may take some time.
Trustpilot reviewers call out a quick, effective growth in credit scores and a user-friendly interface.
Frequently asked questions about Kovo
Kovo improves your credit score by allowing users to make small, manageable payments that are reported to the major credit bureaus. These regular, on-time payments contribute positively to your credit history and could lead to a higher credit score.
Kovo is ideal for those who are new to credit, looking to rebuild their credit, or improve their current credit score.
Starting with Kovo typically involves filling out an application on its platform, providing some personal information, agreeing to the terms, and following the steps to make regular payments towards your credit building.
No, you don't get your money back. Kovo is more comparable to a subscription service than a traditional credit-builder loan. The $10 per month is being used to pay for personal growth tools and credit protection services that Kovo provides.
Kovo stands out by offering a user-friendly platform that emphasizes financial education and responsible credit use. It's designed to be more accessible than other credit-building options, with a focus on helping users establish a solid foundation for long-term financial health.
You can cancel Kovo and get a full refund within 30 days of purchase. Send an email to Kovo at support@kovocredit.com with your name, address, and account number to cancel your account.
