Klarna Buy Now, Pay Later: 2024 Review

Klarna is a “buy now, pay later” provider that offers multiple payment plans that can break up the cost of your purchase for zero interest. It also offers monthly payments that may charge interest.

You can download the Klarna mobile app to shop online and in stores.

» COMPARE: The best buy now, pay later apps

Klarna at a glance

How does Klarna work?

Klarna works by dividing the total cost of your purchase into smaller installments when you check out in the Klarna app or from an online retailer or store. There may be multiple payment plans to choose from, including Klarna Pay in 4, Klarna Pay in 30 and Klarna monthly payments.

Depending on the plan you select, you may need to make the first installment at checkout. Additional installments are automatically billed to your payment method, though you can also make manual payments from the app. There's no penalty for making a payment early or paying off your balance in full before the final due date.

You can use a debit card, card credit or bank account to pay with Klarna, unless you opt for monthly payments, in which case you can’t use a credit card.

Klarna charges a late fee of up to $7. It may charge other fees, like a service fee or payment rescheduling fee (more on those fees below).

Klarna Pay in 4

Klarna Pay in 4 splits your purchase into four equal installments to be paid every two weeks, with the first due at checkout. This plan doesn’t charge interest.

For example, if your purchase costs $200, you would pay $50 at checkout. The three remaining $50 payments would each be billed to your payment method every two weeks until you’ve paid in full.

Klarna Pay in 30

Klarna also offers an interest-free Pay in 30 plan for online purchases. Instead of paying at checkout, shoppers have up to 30 days after placing their order to pay for their purchase.

Once an order ships, you’ll receive an email from Klarna outlining a proposed payment schedule, which you can manage in the Klarna app. This allows online shoppers to try out items before they have to pay for them, according to the company.

Klarna monthly payments

For online purchases starting at $150, Klarna offers monthly financing, with terms of six, 12, 18 and 24 months. These loans, which have an equal payment due each month, may charge interest up to 33.99% APR, though 0% offers are available.

» MORE: What to know about the new Klarna credit card

How to get approved for Klarna

To be eligible for Klarna, you’ll need to be at least 18 years old and a U.S. resident, provide a valid payment method and be able to receive verification codes to your phone via text.

According to Klarna, each purchase is an individual approval decision, so you may be approved for one purchase but not another. Klarna looks favorably on applicants who show positive credit history with the company, meaning they don’t miss or delay payments.

Does Klarna check credit?

Klarna performs a soft credit check, which doesn't hurt your credit score. Klarna doesn't disclose a minimum credit score requirement, and borrowers with fair or bad credit (689 credit score or lower) may be eligible to use Klarna’s payment plans.

How to use Klarna

Download the Klarna app or Klarna Chrome extension

If you want to use Klarna, you can download the mobile app, where you can create an account and start shopping. Klarna also offers a Chrome extension, which lets you check out with Klarna while shopping in the Chrome browser.

Shop with Klarna online and in stores

Some retailers have Klarna integrated into their online checkout flow, which means you can opt in to a Klarna payment plan on the retailer’s site.

If you want to shop in person, look for the store in the Klarna app, then create a digital card, which you can save to your mobile wallet and use to check out at the store. Some stores may also offer a QR code that you can scan at checkout to pay with Klarna.

Is Klarna safe?

Klarna is a safe and reputable provider of BNPL loans. Weigh the pros and cons below to decide whether Klarna is the right fit for you.

Where Klarna stands out

Multiple payment plans with no interest: Klarna’s Pay in 4 and Pay in 30 can help you spread out the cost of your purchase without incurring interest, which is hard to find among other types of credit products, especially those that have no minimum credit score requirement.

Monthly financing: Unlike other BNPL lenders, Klarna offers financing up to two years with the possibility of zero interest, which could help you finance a bigger purchase. Longer payment plans aren’t a fit for everyone, though, especially if you don’t qualify for a 0% offer.

Pauses account after missed payment: If you miss a payment, Klarna will automatically pause your account, so you can’t make any more purchases with Klarna until you’re caught up on payments. This safety feature can help prevent you from overextending your budget and incurring additional fees.

Customer service: Klarna stands out for its commitment to customer service. Customers can reach Klarna 24/7 in the mobile app and can request a callback from Klarna if they prefer to speak by phone. Klarna also has a formal buyer protection policy, which includes pausing your payments for 21 days when you return an item purchased with Klarna and you provide valid tracking details.

Where Klarna falls short

Charges late fee: If you’re 10 days overdue on a payment, Klarna may charge a late fee up to $7. Not all BNPL lenders charge fees — even for a late payment — and incurring fees can add significant costs to a BNPL purchase. Klarna says late fees will never exceed 25% of the purchase amount.

May charge additional fees: Klarna may charge a service fee when you use a one-time card to make biweekly payments with an online retailer that’s not a Klarna partner. A one-time card, which you create in the Klarna mobile app, lets you use Klarna at any online store that accepts a Visa card. Klarna doesn’t disclose how much the fee is, but says it’ll be included in your first installment.

Klarna offers a monthly subscription service called Klarna Plus, which waives service fees among other benefits. However, the subscription costs $7.99 per month and may not be worth the cost for some shoppers.

Klarna may also charge a small rescheduling fee for some rescheduled payments, though it doesn’t disclose the fee amount.

Payments aren’t reported to the bureaus: BNPL lenders don’t typically report payments to the credit bureaus (Equifax, Experian and TransUnion) for pay-in-four plans, and Klarna is no different. Showing a history of on-time payments to the bureaus can help you build credit, which opens the door to more affordable financing options.

Klarna reviews

At the time of writing this review, Klarna holds an A+ rating from the Better Business Bureau (BBB) with over 800 complaints closed in the past year. Complaints against Klarna mostly revolve around billing issues, including inaccurate charges and delayed refunds.

On Trustpilot, Klarna is rated 4.2 out of five stars. Users cite good customer service, regular payment reminders and improved budget flexibility as pros to using Klarna.

Klarna’s mobile app pages are another good resource for reading Klarna reviews. In the Apple App Store, Klarna is rated 4.8 out of five stars, with one million ratings. In the Google Play Store, Klarna is rated 4.6 out of five stars, with over 600,000 reviews.

Frequently asked questions about Klarna

• Is Klarna safe and legit?

  Klarna is a safe and legitimate provider of BNPL loans. Whether you should use Klarna depends on your financial situation, including whether you can afford the payments.

• Does Klarna affect credit?

  Klarna doesn’t affect credit when you apply. If you don’t make payments on time or stop paying altogether, this activity may be reported to the credit bureaus, which could hurt your credit.

• Does Klarna build credit?

  Klarna doesn’t build credit. If your goal is to build credit, it’s better to apply for a credit card or traditional loan and focus on making on-time payments.

• Can I pay off Klarna early?

  You can pay off Klarna early with no prepayment penalty.

• What payment methods can I use with Klarna?

  You can use a debit card, card credit or bank account to pay with Klarna, unless you’re paying monthly, in which case you can’t use a credit card.

Compare Klarna with other BNPL lenders

Klarna is similar to pay-in-four plans offered by Afterpay and Sezzle, which charge no interest but do charge late fees. Afterpay and Sezzle also offer monthly financing with interest.

Alternatives to Klarna

If you have good or excellent credit (690 credit score or higher), you may consider a 0% APR credit card. These cards offer introductory periods of up to 21 months and charge no interest during that period. You may also receive a sign-up bonus or access to a rewards program.

If you’re looking to fund a large, essential purchase, you could apply for a personal loan. Personal loans have fixed interest rates and longer repayment terms, and there are options for borrowers with fair or bad credit (689 credit score or lower).