Klarna Review | U.S. News
Klarna allows you to shop at your favorite retailers in the app, either in person at stores or anywhere online. There is also a Klarna browser extension in Chrome that lets you split purchases when shopping from your desktop.
The Klarna debit card can also be used to pay anywhere that accepts Visa, including online, in-store abroad. It comes with 0% APR a monthly fee of $4.99, your credit score isn’t affected by applying for or using the card.
Additionally, Klarna offers a free rewards club that allows you to earn one point for every $1 you spend with Klarna. Points can receive a boost by completing tasks in the app. Members also get exclusive access to deals.
Other perks of using Klarna include a tool for managing all of your loyalty cards, discounts for referrals a wish list that notifies you when a product’s price drops.
Klarna partners with thousands of retailers all over the world, with the option to pay via Klarna online or in-store. Some of the major retailers include Nike, Instacart, Versace, Sephora Wayfair.
Klarna offers financing plans up to 24 months with an annual percentage rate, or APR, ranging from 0% to 29.99% APR.
Installment purchases below $25 do not incur a fee if a payment is late. Late fees for purchases above $25 are tiered, will not exceed 25% of your order value. The Klarna Card comes with a $4.99 monthly fee.
Klarna allows users to pick a flexible payment schedule that fits their budget:
- Pay in 4. Allows you to split your purchase into four interest-free payments, paid automatically every two weeks, with the first 25% paid upfront.
- Pay in 30 days. Choose to shop now pay up to 30 days later, interest-free. This option is only available with select retailers.
- Financing. For larger purchases, Klarna offers financing plans with terms of up to 24 months an APR up to 29.99%.
- Pay Now. You can opt to pay in full right away, earn Klarna rewards points on your purchase.
If you miss a payment, Klarna will attempt to collect it again in seven days. If the payment still doesn’t go through, the missed payment will be added to your next scheduled payment, along with a late fee. If you have an outstanding payment, you won’t be able to continue using Klarna until you’ve paid off your debt. Late financing payments might also be reported to the credit bureaus. If you need more time to pay, you can extend your next payment date by 14 days once per order.
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Accepted: Klarna’s partner stores include Instacart, Sephora Wayfair, among many others. Affirm is also available at many stores, including popular retailers like Amazon Target.
APR: Klarna only charges interest on long-term installment plans, with an APR of up to 29.99%. Affirm also charges interest on long-term financing, up to 36% APR.
Terms: Klarna offers the option to pay in monthly installments up to 24 months, while Affirm repayment terms can range from as short as one month to as long as 48 months for larger loans.
Fees: Klarna charges fees for late payments on purchases over $25, according to a tiered structure. Affirm, on the other hand, does not charge late fees.
Accepted: Both Afterpay Klarna are widely accepted as payment methods. However, their retail partners can differ. Klarna’s partner stores include Instacart, Sephora Wayfair. Retailers that accept Afterpay include Target, Shein, Pandora, MAC Cosmetics Dyson.
APR: Klarna only charges interest on long-term installment plans, with a rate of up to 29.99% APR. Afterpay does not charge interest on its pay-in-four payment plans. However, you’ll pay 0% to 35.99% APR for its monthly payment plan.
Terms: Klarna offers repayment terms of up to 24 months. Afterpay’s monthly installment plans range from six to 12 months.
Fees: Klarna charges late fees on a tiered structure which are capped at 25% of the order value. Afterpay charges late payment fees which also will not exceed 25% of the original order value.
When you use the Pay in 4 payment option, Klarna runs a soft credit check. This means it won’t affect your score. However, if you apply for one of the other financing options, a hard credit check might be required, meaning it will show up as an inquiry on your credit report.
Klarna is accredited by the Better Business Bureau has an A+ rating. Trustpilot users rate Klarna with 4 out of 5 stars, based on more than 162,000 reviews.
In 2022, the Consumer Financial Protection Bureau received 126 consumer complaints about Klarna. The company gave a timely response in all cases. It closed 121 cases with an explanation, while five were closed with monetary relief.
You can get 24/7 help using Klarna’s chat function on the website or in the app. You can also call any time at 844-552-7621.
- Who tend to make small purchases.
- Who know they will not be late on payments.
- Who are interested in additional perks savings options.