reviews
Hanneh Bareham
Written by
Rhys Subitch
Edited by
Updated on Jan. 9, 2024
Advertiser Disclosure
You have money questions. Bankrate has answers.
Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate is an independent, advertising-supported publisher and comparison service. We arecompensatedin exchange for placement of sponsored products and services, or when you click on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. However, this compensation in no way affects Bankrate’s news coverage, recommendations or advice as we adhere to stricteditorial guidelines.
Our advertisers do not compensate us for favorable reviews or recommendations. Our site has comprehensive free listings and information for a variety of financial services from mortgages to banking to insurance, but we don’t include every product in the marketplace. In addition, though we strive to make our listings as current as possible, check with the individual providers for the latest information.
Editorial integrity
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU — the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a stricteditorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
At a glance
Find my best rates
Check rate with Bankrate
4.5
Rating: 4.5 stars out of 5
Bankrate Score
Availability
Rating: 4.3 stars out of 5
4.3
Affordability
Rating: 5 stars out of 5
5.0
Customer Experience
Rating: 4.3 stars out of 5
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.
About Bankrate Score
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 maximum
APR from
0%
Term lengths
30 days to 24 months
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 lender compares
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. Apple Pay Later
Apple Pay Later is similar to Klarna in structure, but Apple users will likely find more convenience in Apple Pay Later than Klarna. Rather than having to be redirected or only making purchases within the Klarna app, Apple houses its BNPL loans directly within your Apple Wallet. Every time you make an eligible purchase with your mobile device, it automatically gives you the option to use its pay later option.
Klarna: In the details
Loan Amount
No set maximum
APR from
0%
Term lengths
30 days to 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.
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
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.
On This Page
On This Page
- At a glance
- Pros and cons
- Do you qualify?
- How this lender compares
- In the details
- How to contact Klarna
- How to apply
- Fees and penalties
- Frequently asked questions
- Our rating
- Methodology
Compare Rates
Up next
Read morePersonal Loans Reviews
