Klarna offers multiple payment options, including Pay in 4, Pay in 30 and monthly financing, which can help break up the cost of your purchase.
4.5
NerdWallet Rating
$35 - $1K
33.99%
None
Multiple fees
Pay in 4, Pay in 30, Pay Over Time
Klarna is a “buy now, pay later” provider that offers two payment plans that break up the cost of your purchase for zero interest. It also offers monthly financing, which may charge interest.
You can download the Klarna mobile app to get started or check out with Klarna when shopping at a partner store.
» COMPARE: The best buy now, pay later apps in 2025
What the nerds think
“Klarna’s been around a lot longer than other BNPL providers, and it shows in their mobile app experience. You can shop pretty much anywhere, compare prices across stores, earn cash back and then check out with a no-interest payment plan. Still, other providers may do a better job eliminating fees, so if you use Klarna, do what you can to avoid fees, like making 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 a retailer, either online or in-store. There may be multiple payment plans to choose from, including Klarna Pay in 4, Klarna Pay in 30 and Klarna Pay Over Time. You may also choose to pay in full with Klarna.
Depending on the plan you select, your first installment may be due at checkout. Additional installments are automatically billed to your payment method, and 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 or bank account to pay with Klarna.
Klarna charges a late fee of up to $7 and may also charge a service fee (more on those fees below).
Klarna is a safe and reputable provider of BNPL loans. However, NerdWallet doesn’t recommend using a BNPL loan to pay for a non-essential purchase, like recreational shopping. That’s because BNPL is still a form of debt, and it’s easy to get in over your head, especially if you struggle with overspending. Plus, if you fall behind on payments, your credit score could suffer, making it harder to qualify for affordable credit in the future.
» LEARN MORE: The pros and cons of BNPL
NerdWallet rates lenders against a rubric that changes each year based on how BNPL products evolve. Here’s what we prioritized this year:
» LEARN MORE: NerdWallet’s methodology for rating BNPL products
Klarna checks your credit with a soft credit pull when you apply for a new Pay in 4, Pay in 30 or Pay Over Time plan. Klarna also checks your credit if you apply for a Klarna credit card.
A soft credit pull won’t hurt your credit score. Though there’s no minimum requirement, Klarna considers your credit score as part of your application.
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. You may also need to provide your Social Security number.
According to Klarna, each purchase is an individual approval decision, so you may be approved for one purchase but not another. Klarna looks at your credit score, credit history, income, any outstanding debt and spending patterns, among other factors. It likely also considers any previous history you have with Klarna.
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 providers like Sezzle and Zip, both of which charge at least two fees. If you want a no-fee lender, Affirm and PayPal are your best options.
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If you have good or excellent credit (any score in the mid-600s or higher), you may consider applying for 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.
Since your payment history is reported to the credit bureaus, it’s a reliable way to build credit. Make sure you pay off the purchase before the introductory period ends or you’ll owe interest on the remaining balance.
If you’re looking to fund a large, essential purchase, you could apply for a personal loan. Most personal loans start at $1,000 or $2,000, and there are options for borrowers with fair or bad credit (any score in the low 600s or below). Personal loans have fixed interest rates and longer repayment terms, both of which can help you budget for the monthly payments.
Personal loan lenders report your payment history to the credit bureaus, and they typically charge late fees.
Many lenders offer pre-qualification, so you can check whether you qualify for a small personal loan without hurting your credit score.
Klarna is a trustworthy provider of BNPL loans. Whether you should use Klarna, though, depends on your financial situation, including whether you can afford to make all of the payments.
The downsides of Klarna are that you may be tempted to overspend, and if you don’t have enough money in your account when payment is due, you’ll be charged a late fee. If your debt becomes significantly overdue, you’ll be sent to collections. Late payments and collections activity can hurt your credit score.
Klarna runs your credit via a soft pull, which doesn’t hurt your credit score. Klarna conducts a soft pull each time you go to check out with a Klarna payment plan.
Klarna only reports payment history for its monthly financing product, so those payments may help build credit. It doesn't report on-time payments for Pay in 4 or Pay in 30. If your goal is to build credit, it’s better to apply for a credit card or traditional loan, in which payments are always reported.
Yes, you can make early payments, or pay off a Klarna loan in full before the due date, with no penalty.
4.5
NerdWallet Rating
