Klarna FAQ
Klarna is an online payment provider trusted by consumers worldwide. Founded in 2005, in Stockholm Sweden, with the aim to make it easier for people to shop online, Klarna is now one of Europe’s largest banks, providing payment provisions for 200,000 online stores.
Should you wish to know more, please see below important information and some of our frequently asked questions.
Yes, we perform a credit check. This can affect your credit score depending on which payment option you choose in the checkout.
As a responsible lender, we want to ensure we’re helping you make the right financial decisions for your circumstances. When a credit check is performed, we verify your identity using the details you provided and we look at information from your credit report. Depending on the payment option you choose, we may perform different types of searches and checks to assess your financial standing:
- A soft credit check is performed when you apply for our Buy Now Pay Later options which will not affect your credit score. However, as a responsible lender, we share data about your payments to credit reference agencies which are visible to other lenders.
- A hard credit check will be conducted when applying for one of our Financing options. This may affect your credit score.
Our credit checks are performed by the credit reference agencies Transunion & Experian. If you have questions regarding their services, your credit score, or the data provided as part of a credit check, contact the credit reference agencies directly. Credit checks are performed in accordance with Klarna’s Terms & Conditions.
Using Klarna will not affect your credit score. However, information such as payment holidays and existing, late and unpaid balances is visible on your credit file to other lenders.
Making repayments on time consistently will help build a positive history when using our payment options.
Good to know: Mortgage lenders could possibly include your monthly Buy Now Pay Later commitments as part of their affordability checks.
Financing allows you to pay for your purchase in several fixed monthly payments for up to 36 months.
How to finance your purchase:
- Select the Financing option in the store’s checkout
- Choose your preferred timeline and interest rate
- Follow the steps to complete the application
- Get an instant approval decision
- Complete your purchase
You’ll receive an email from us with your payment plan when the store ships your order.
Please note: A credit check will be performed when you apply for our Financing options.
When do I pay?
Your first Financing payment will be due one month after the store processes your order and then monthly thereafter on the same date each month until your statement is fully paid. Your statements and upcoming payments can always be found in your Klarna account.
Good to know:
- The Annual Percentage Rate (APR) for purchases is between 0-18.99%.
- Read our Terms & Conditions for more detailed information about Financing.