What Klarna is and how it fits into your payment choices

Klarna is a "buy now, pay later" service that lets you split a purchase into smaller payments spread over weeks or months instead of paying the full amount upfront. When you check out at a store or online retailer that offers Klarna, you can choose to pay in installments rather than all at once. Klarna pays the merchant immediately, and you repay Klarna on a schedule.

The service is free if you pay on time. If you miss a payment, Klarna charges late fees and may report the missed payment to credit bureaus, which can affect your credit score. Unlike a credit card, Klarna doesn't require a credit check for some payment plans, though it does a soft check that doesn't show up on your credit report. For larger purchases or longer payment terms, Klarna may do a hard credit check.

Klarna operates in the United States, the United Kingdom, Sweden, Germany, Austria, and several other countries. The terms, fees, and available payment plans vary by location and by the retailer you're using.

Key Takeaways

  • Klarna splits your purchase into installments you pay over time, with the first payment often due at checkout and the rest spread across weeks or months.
  • Using Klarna is free if you pay each installment on time, but late fees apply if you miss a payment, and missed payments can hurt your credit score.
  • Not all retailers accept Klarna, and not all Klarna plans are available at every store—check at checkout to see what options you have.
  • Klarna reports payment history to credit bureaus for some plans, so on-time payments can help your credit, but missed payments will damage it.
  • You can use Klarna through the Klarna app, at checkout on a retailer's website, or in-store at participating locations.

The four main Klarna payment plans

Klarna offers four different ways to split a purchase, and which ones are available depends on the retailer and the amount you're spending.

Pay in 4 is the most common plan. You make four equal payments: one at checkout and three more over the next six weeks, with payments due every two weeks. There is no interest charge if you pay on time. This plan typically has no credit check or a soft check only.

Pay in 2 Months lets you defer your first payment for two months, then pay the full amount in one lump sum. This is useful if you're waiting for a paycheck or a refund. There is no interest if you pay by the due date.

Pay in 3 Months splits the cost into three equal payments over three months, with the first payment due at checkout. Interest-free if paid on time. Klarna typically does a soft credit check for this plan.

Klarna Card is a virtual or physical card linked to a revolving credit line. You can use it like a credit card and choose your own payment schedule, but you'll pay interest on the balance. This plan requires a hard credit check and a credit decision, similar to applying for a traditional credit card.

How to use Klarna at checkout

When you're ready to buy from a retailer that accepts Klarna, look for the Klarna logo or "Buy now, pay later" option at checkout. Click or tap on it to see which Klarna plans are available for that purchase.

Select the plan that works for your budget. Klarna will show you the payment schedule—exactly when each payment is due and how much it will be. Review the terms, including any fees for late payment. Then enter your personal information (name, address, phone number, email) and authorize the purchase.

Klarna will send you a confirmation email with your payment schedule and a link to manage your order in the Klarna app. You can also set up payment reminders so you don't miss a due date. Payments are usually deducted automatically from the debit or credit card you provided, though you can change your payment method in the app if needed.

Fees, interest, and what happens if you miss a payment

Klarna's main payment plans (Pay in 4, Pay in 2 Months, Pay in 3 Months) charge no interest as long as you pay each installment on time. However, if you miss a payment, Klarna charges a late fee. The amount varies by plan and location, but late fees typically range from a few dollars to around $7 per missed payment in the United States.

If you continue to miss payments, Klarna may suspend your account, report the missed payments to credit bureaus, and send your account to a debt collector. A missed payment can lower your credit score and make it harder to borrow money in the future. Klarna also charges interest on the Klarna Card product if you carry a balance beyond the promotional period.

If you're having trouble making a payment, contact Klarna through the app or website as soon as possible. Klarna sometimes offers payment extensions or the ability to reschedule a payment, though this is not may provide and may depend on your payment history.

Where you can use Klarna

Klarna is accepted at thousands of online retailers in the United States, including fashion, home goods, electronics, and furniture stores. Major retailers that accept Klarna include Wayfair, Sephora, Expedia, and many others, though the list changes regularly. You can search the Klarna app or website to see which stores near you or online accept Klarna.

Klarna is also available in some physical stores, though in-store availability is less common than online. If you're shopping in person, look for the Klarna logo at the register or ask a cashier whether Klarna is accepted.

Not every retailer offers every Klarna plan. A store might offer Pay in 4 but not the Klarna Card, or might not accept Klarna at all. Always check at checkout to see which options are available for your purchase.

How Klarna affects your credit score

Klarna reports payment activity to credit bureaus for some of its plans, which means on-time payments can help your credit score and missed payments can hurt it. Whether Klarna reports to credit bureaus depends on the plan you use and your location. Pay in 4 typically does not report to credit bureaus unless you miss a payment, at which point the missed payment is reported. The Klarna Card and longer-term plans are more likely to be reported to credit bureaus from the start.

If you're trying to build or repair your credit, using Klarna responsibly—paying on time, every time—can help. But if you miss payments, the damage to your credit score can outweigh any benefit. Before using Klarna, make sure you can afford all the payments on your schedule.

Klarna versus credit cards and other payment methods

Klarna and credit cards both let you buy now and pay later, but they work differently. A credit card charges interest on any balance you don't pay off by the due date, while Klarna's main plans charge no interest as long as you pay each installment on time. Credit cards give you a single monthly bill for all your purchases, while Klarna creates a separate payment schedule for each purchase. Credit cards typically require a credit check and a credit decision upfront, while Klarna's Pay in 4 plan often requires only a soft check.

If you use a credit card responsibly and pay the full balance each month, you avoid interest entirely and may earn rewards. If you tend to carry a balance, Klarna's interest-free plans can be cheaper. However, Klarna's rigid payment schedule means you can't adjust your payments if your situation changes, whereas a credit card gives you flexibility (though at the cost of interest if you don't pay in full).

Other buy-now-pay-later services like Affirm, Afterpay, and PayPal Pay in 4 work similarly to Klarna. Each has different retailers, different payment schedules, and different fees. If you're deciding between them, compare which retailers you shop at most often and which payment schedule fits your budget best.

Frequently Asked Questions

Does Klarna do a hard credit check?

Klarna does a soft credit check for Pay in 4, which doesn't affect your credit score. For longer payment plans and the Klarna Card, Klarna does a hard credit check, which shows up on your credit report and can temporarily lower your score by a few points. The hard check is similar to what happens when you apply for a credit card or loan.

What happens if I can't make a payment on time?

Contact Klarna through the app or website as soon as you know you'll miss a payment. Klarna may offer to reschedule or extend the payment, though this is not may provide. If you don't contact them and miss the payment, Klarna will charge a late fee and may report the missed payment to credit bureaus, which can hurt your credit score.

Can I return an item I bought with Klarna?

Returns work the same way as if you'd paid with any other method—you return the item to the retailer according to their return policy. Once the retailer processes the return and refunds the money, Klarna adjusts your payment schedule. You may owe less or be owed a refund, depending on which payments you've already made.

Is Klarna safe to use?

Klarna uses encryption and security measures to protect your personal and payment information, similar to other financial services. However, like any service that handles your money, there is a small risk if your account is hacked or if you share your login information. Use a strong password, enable two-factor authentication if available, and don't share your Klarna login with anyone.

Can I use Klarna if I don't have a credit card?

Yes. Klarna can deduct payments from a debit card or bank account instead of a credit card. However, you'll need a valid debit card or bank account linked to your Klarna account, and Klarna will still do a soft credit check for most plans to verify your identity and assess risk.