Why We Chose It

We like Klarna because the app offers three different repayment options to suit a variety of needs.

Pros and Cons

Overview

With Klarna, you can get what you need and pay for it in a way that works for you: in four installments, in 30 days, or up to 36 months.

The pay in four installments option feels like many BNPL services on the market. If approved, your purchase will get spread out over four equal payments and will be interest-free. Using the service only results in a soft credit check, which won’t hurt your credit. 

You’ll make your first payment (25% of the order’s total) when you check out. The remaining three payments will get charged to your card on file every two weeks. If you’re more than 10 days late, you may get charged a fee of up to $7.

The pay in 30 days option lets you try before you officially buy with a soft credit check. You only pay for what you keep, and your purchase is interest-free. You must pay Klarna’s invoice within 30 days. If you’re late, the company won’t allow you to use this option again. 

If you let your account go into default, the service provider could use a collection agency to recoup their money. This negative activity may also get reported to the credit bureaus. Klarna charges a returned payment fee of up to $27.

For larger purchases, you can apply for more traditional financing through Klarna. This option lets you spread out payments over six to 36 months. The company may run a soft credit check to approve you for this repayment method. Klarna doesn’t list the requirements to qualify for the financing on its website, however. If approved, your credit limit will be a minimum of $300.

While you won’t have to pay annual or over-the-limit fees, you’ll have to fork over $35 for late or bounced payments. The APR is 19.99%, which can increase your balance significantly over time. 

Klarna has partnered with many popular retailers, including Sephora, GameStop, and JBL. To use Klarna, select it when you check out on merchant websites or shop via the mobile app. You can also use the app to manage your transactions and get help if needed.

The app also acts as a virtual personal shopper, showing you deals, curating wish lists, and giving you shopping tips. Plus, you can enroll in Vibe rewards for free to earn special perks like retailer gift cards just for shopping through Klarna.

Read our full Klarna review.