Kovo Credit Builder Review (2024)

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

Introduction

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. Keep reading to see if it's the best credit builder account for you.

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.

With $10 monthly payments, Kovo is easy to keep up with from month to month.

The Significance of Building a Robust Credit History

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.

How Kovo Work 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.

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.

Kovo does provide 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

Benefits of Using Kovo

Kovo Pros and Cons

Kovo has some features we like. Crucially, it reports payments to all three credit bureaus, and applying does not trigger a hard inquiry on your credit report. That said, Kovo is not without its downsides.

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.

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 should happen in seconds to minutes, 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, 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.

That brings us to Kovo's biggest downside: You don't get your money back. When you finish your payments with Self, 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.

Real user experiences with Kovo

Current users are finding success with Kovo. For example, on the website Trustpilot reviewers had positive experiences with Kovo and liked the process.

William L. said, "In two months I saw my credit score go up. Kovo really helped and they do it in a way that I enjoy." And user Montrea T. said, "Since I've joined Kovo my score is improving and it's convenient and an easy payment for me."

FAQs