Klarna offers multiple payment options, including a Pay in 4, Pay in 30 and monthly financing, which can help break up the cost of your purchase.
Jackie Veling
Kim Lowe
4.5
NerdWallet Rating
$35 - $1K
33.99%
None
Late fees (up to $8), Service fee (undisclosed)
Pay in 4, Pay in 30, Monthly Payments
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
What the nerds think
Klarna’s been around a lot longer than other BNPL providers, and it shows, particularly in their mobile app experience. You can shop pretty much anywhere, compare prices across stores, take advantage of exclusive deals and then check out with a no-interest payment plan.
That being said, other providers do a better job eliminating fees, so if you use Klarna, do what you can to avoid fees, like making all your payments on time and limiting use of one-time cards.
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 and may also charge a service fee (more on those fees below).
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 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.
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.
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.
NerdWallet rates lenders against a rubric that changes each year based on how BNPL products evolve. Here’s what we prioritized this year:
Read more about our ratings methodologies.
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.
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.
Nerdy Tip
One of the best ways to get approved for a BNPL loan is to show a history of on-time payments with that provider. Consider using BNPL to make a small purchase first, then pay off your loan on time or early. This may help you get approved for a slightly larger purchase in the future.
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.
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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).
You can pre-qualify for free with NerdWallet to see your loan options. Pre-qualifying doesn’t affect your credit score.
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.
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.
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.
You can pay off Klarna early with no prepayment penalty.
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.
4.5
NerdWallet Rating
