How to Get a Secured Line of Credit Without a Hard Inquiry
Need a secured line of credit but afraid of the credit check? Discover how KOHO's Flexible Credit Building offers a secured line with no hard inquiry.
If you are trying to build your credit score, you have probably heard about the importance of “Credit Mix.” Lenders like to see that you can handle different types of credit—not just a cell phone bill, but revolving credit like a credit card or a line of credit.
But here is the catch: applying for a line of credit usually triggers a “hard inquiry” on your credit report, which can temporarily drop your score. If your score is already low, this is a risk you can’t afford to take.
Enter KOHO’s Flexible Credit Building—a secured line of credit designed specifically to solve this problem.
Start building your credit history today with a $65 value bonus. Use code C4MNILZARC. Claim your credit builder bonus →
What is a “Hard Inquiry” vs. “Soft Inquiry”?
- Hard Inquiry: Occurs when a lender checks your credit to make a lending decision. It stays on your report for years and impacts your score.
- Soft Inquiry: A background check that does not impact your score.
Most banks perform a hard inquiry for any credit product. KOHO, however, uses a soft inquiry for its credit building tools. This means you can open a secured line of credit without fear of hurting your score.
How KOHO’s Secured Line Works
KOHO calls this feature “Flexible Credit Building.” It functions like a traditional secured card but is integrated into your KOHO app.
- Security Funds: You set aside a specific amount of your own money (from $30 to $500). This acts as your “security deposit.”
- The Line: KOHO gives you access to a line of credit equal to that amount.
- Usage: You can withdraw from this line if needed, but the goal is to keep it open to show utilization.
- Reporting: KOHO reports this to the credit bureau as a “secured line of credit.”
The $30 Advantage
Most secured credit cards require a minimum deposit of $500. For many students or people on tight budgets, that is too much.
KOHO allows you to start with as little as $30. This makes it the most accessible secured credit product in Canada. You can start small and increase your limit later as you save more money.
Why “Credit Mix” Matters
Your credit score is calculated based on several factors. While “Payment History” is the biggest chunk (35%), “Credit Mix” accounts for 10%.
Having both a subscription (installment-like) and a secured line (revolving) can help diversify your file. By using KOHO’s subscription tool and the secured line simultaneously, you are feeding the credit bureau more positive data points.
Conclusion
You don’t need to risk your credit score to build it. With KOHO’s no-hard-check policy and low entry barrier ($30), you can add a powerful secured line of credit to your financial toolkit today.
Learn more: How to Build Credit with a Prepaid Card and KOHO Plans Comparison.
📈 Build Credit Without the Risk
No hard inquiry, start with just $30. Use KOHO referral code C4MNILZARC to get up to $65 in sign up bonus value.
