Yes, Klarna is a legitimate business and company that offers buy now, pay later financing options. It is accredited by the Better Business Bureau and is given an A+ rating and Klarna states that it uses "the highest security standards to protect your data and personal information."

What is the downside to paying with Karna?

The major downside to using Klarna — and every similar app — is the convenience of the financing. It often doesn't impact your credit on applying, and can be used just as every other payment method, which can make it easy to soar past your budget and overspend. Plus, it can carry a high interest rate of nearly 34 percent if you use its loan product.

Is everyone approved for Klarna?

No, not everyone is approved for Klarna. But, unlike traditional lending, your creditworthiness doesn't play the largest role in approval. Most buy now, pay later apps — like Klarna — don't conduct a hard credit inquiry for approval, making it easier to get approved with a low credit score. However, it does have a specific set of eligibility requirements and not all purchases are guaranteed to be approved for financing.

reviews

Klarna Buy Now, Pay Later: 2024 Review

Written by

Hanneh Bareham

Edited by

Rhys Subitch

Updated on Jan. 9, 2024

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

At a glance

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4.5

Bankrate Score

Availability

4.3

Affordability

5.0

Customer Experience

4.3

Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.

Full methodology

Klarna's pay-in-four payment plan is a buy now, pay later (BNPL) service that doesn't charge interest. It offers three repayment options: pay in four, pay in 30 days and a financing option of up to 24 months. Founded in 2005, Klarna states that it works with 150 million active customers across the globe and works with 500,000 retailers.

Lender Details

Loan amount

No set min or max

APR from

0%-33.99%

Term lengths

30 days-24 months

Min Credit Score

300

Best for nonspecific purchases

Klarna is best for borrowers who want to finance a purchase at the point of sale. Your initial loan amount range will be based on your application information and, with positive repayment history, your maximum loan amount could increase.

Klarna pros and cons

Pros

Multiple payment options
Access to a rewards program
Partners with popular stores

Cons

Late fee may apply
Doesn't help you build credit
Limited information available

Do you qualify?

To use Klarna, you must:

Be at least 18 years of age.
Be a resident of the U.S. or one of its territories.
Have a positive credit history.
Have a valid credit or debit card and bank account.
Purchase an eligible item.

How this app compares

4.5

Bankrate Score

APR from

0%-33.99%

Loan Amount

No set min or max

Term Length

30 days-24 months

Min Credit Score

300

Compare rates

on Bankrate

4.7

Bankrate Score

APR from

0%-35.99%

Loan Amount

$30 to $10,000

Term Length

6 weeks-24 months

Min Credit Score

Not disclosed

Read our review

on Bankrate

4.8

Bankrate Score

APR from

0%-36%

Loan Amount

$50-$17,500

Term Length

1-60 months

Min Credit Score

Not disclosed

Read our review

on Bankrate

Klarna vs. PayPal

Unlike Klarna, PayPal's pay-in-four option has a maximum limit of $1,500. However, if you have multiple small purchases you want to finance then PayPal may be the better option. PayPal also offers the benefit of no late fees with its pay-in-four option.

Klarna vs. Affirm

Affirm and Klarna are both well known in the BNPL space, having been in business for over a decade. Both offer in-store options alongside their online ones, and offer similar services.

Where Klarna stands above is in the types of plans it offers. Klarna has two plan options, whereas Affirm only offers one. Affirm, on the other hand, has a higher average app rating across the App Store and Google Play.

Klarna: In the details

Loan Amount

No set min or max

APR from

0%-33.99%

Min. credit score

300

Term lengths

30 days-24 months

What we like and what we don’t like

What we like

Multiple payment options: Rather than just a single 0 percent payment plan, Klarna offers both a pay-in-four and pay-in-30 option. Outside of its two 0 percent options, Klarna also offers personal loans with terms up to two years.
Access to a rewards program: There is a free rewards club through Klarna that gives one point for every dollar spent using Klarna. Points can be redeemed for discounts and offers at certain stores.
Partners with popular stores: From Nike to Instacart, Klarna partners with a number of popular stores that offer a variety of goods. Whether you're looking for clothes, beauty supplies, electronics or more, you'll likely be able to pay with Klarna.

What we don’t like

Late fee may apply: If you're late on your payment, you may owe $7. If you miss more than one payment, the late fees can add up — though it's limited to 25 percent of the original purchase amount. You may be able to extend your payment once by up to seven days.
Doesn't help you build credit: As with many BNPL options, using this type of financing won't help you build credit. Your on-time payments are not reported to any credit reporting agencies. However, your late payments may be reported.
Limited information available: Due in part to its approval requirements varying on a highly individual level, Klarna doesn't provide information on exact financial requirements, or how small of a loan can be taken out.

How to contact Klarna

Klarna can be contacted 24/7. You must have a Klarna account to contact customer support by chat. Once you do, you can choose to chat or call with a customer support agent.

How to take out a loan with Klarna

To start a payment plan with Klarna, you will need to follow four steps.

Head over to your device's app store and download the Klarna app. You can also sign up online by going to the Klarna website.
Start shopping within its list of approved retailers. Once you're ready to check out, you'll be able to select Klarna as a payment method if your purchase is eligible for its BNPL option.
If you've never used Klarna's pay-in-four feature, you'll be guided through the application process. You'll be asked to provide basic information, like your phone number and address, and the app will conduct a soft credit check.
If approved, you'll be guided through the loan terms and repayment dates. Klarna will automatically collect your first of the four payments at checkout.

Klarna features and perks

Klarna's rewards program is free and awards points for every eligible purchase. Its reward structure allots one point for every $1 spent on eligible purchases. The app also offers a $5 welcome reward upon signing up for the program. These points can then be used to score discounts, deals and offers at a participation store of your choosing.

Fees and penalties

A late fee of up to $7 will be charged for each missed payment, and won't exceed 25 percent of your order value.

Klarna frequently asked questions

Yes, Klarna is a legitimate business and company that offers buy now, pay later financing options. It is accredited by the Better Business Bureau and is given an A+ rating and Klarna states that it uses "the highest security standards to protect your data and personal information."
The major downside to using Klarna — and every similar app — is the convenience of the financing. It often doesn't impact your credit on applying, and can be used just as every other payment method, which can make it easy to soar past your budget and overspend. Plus, it can carry a high interest rate of nearly 34 percent if you use its loan product.
No, not everyone is approved for Klarna. But, unlike traditional lending, your creditworthiness doesn't play the largest role in approval. Most buy now, pay later apps — like Klarna — don't conduct a hard credit inquiry for approval, making it easier to get approved with a low credit score. However, it does have a specific set of eligibility requirements and not all purchases are guaranteed to be approved for financing.

How Bankrate rates Klarna

Overall Score	4.5
Availability	4.3	Its minimum loan amount is not disclosed, but Klarna offers two ways to buy and borrowers can shop in stores and online.
Affordability	5.0	Klarna only charges a late fee. It also offers a reward program.
Customer Experience	4.3	Online application and account access, and 24/7 customer support via online and by phone.

Methodology

The Bankrate team did a complete analysis of the features and services offered by the most well-known buy now, pay later apps in the industry. Then our experts developed a scoring system to rate these apps, focusing on three main areas:

Availability: We look at the minimum and maximum loan amounts offered by the apps, as well as the number of interest-free plans they offer. Apps offering more than one interest-free plan and those with the most flexible loan amounts rank higher in this category.
Affordability: We evaluate the APR ranges apps assess on purchases once the interest-free period ends. Additional fees, exclusive perks and discounts are also rated. Apps with the lowest APRs, fewer fees and more perks obtain the highest scores in this category.
Customer experience: Purchasing flexibility, as well as return, exchange and refund policies are vetted in this section. Mobile app rating, number of consumer complaints with the CFPB and customer support are also taken into account. Apps with more flexibility and lower complaints rate higher in this category.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

What customers think

We wanna know what you think about Klarna

Have experience with Klarna? Let us know your thoughts

Klarna Buy Now, Pay Later: 2024 Review

The Bankrate promise

At a glance

Lender Details

Loan amount

APR from

Term lengths

Min Credit Score

Best for nonspecific purchases

Klarna pros and cons

Pros

Cons

Do you qualify?

How this app compares

Klarna vs. PayPal

Klarna vs. Affirm

Klarna: In the details

What we like and what we don’t like

What we like

What we don’t like

How to contact Klarna

How to take out a loan with Klarna

1. Download the mobile app or sign up online

2. Start shopping

3. Apply

4. Agree to the terms

Klarna features and perks

Fees and penalties

Klarna frequently asked questions

Is Klarna legit?

What is the downside to paying with Karna?

Is everyone approved for Klarna?

How Bankrate rates Klarna

Methodology

What customers think

We wanna know what you think about Klarna

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