Klarna Buy Now, Pay Later Review
pros and cons
The idea behind buy now, pay later is similar across companies, but each has its own unique perks and drawbacks. Here’s what we found during our review.
Pros
- No interest on Pay in 4 and Pay in 30
- Instant credit decisions
- No hard credit checks, ever
- AI chatbot can help, no matter what language you speak
Cons
- Late fees can stack up quickly
- Won’t know how much will allow you to spend until checkout
- May find yourself in over your head if BNPL is not used responsibly
- Sometimes charges service fees when using a one-time virtual card
With instant credit decisions and 0% interest,
financing options
According to LendingTree’s monthly tracker, 41% of BNPL users say they’ve been late on a BNPL payment at least once this year. If you’re considering , understanding the company’s financing options could be crucial to avoiding a debt cycle.
| BNPL option | Financing term | Due at time of purchase | Next payment due | Interest
While may give you 0% financing, warns that failing to pay on time could mean late fees or collections.
| Fees |
|---|---|---|---|---|---|
| Pay in 4 | 6 weeks | 25% of the total amount | 25% required two weeks later, and in two week increments thereafter | 0% | $7 late payment fee, and total fees cannot exceed 25% of purchase amount |
| Pay in 30 | 30 days | $0 | Total amount required 30 days after merchant confirms your order | 0% | $7 late payment fee, and total fees cannot exceed 25% of purchase amount |
| Pay over time | months | $0 | One month after the store processes your payment and then on the same day each following month | late payment fee, and total fees cannot exceed 25% of purchase amount | |
| Card | Depends on payment plan you choose | $0 | On the 16th of each month | 0% except for Pay over time, in some cases | $7 late payment fee and cannot exceed 25% of outstanding balance |
requirements
To use
How to finance with
Signing up for
Download the app or apply online
You can apply for
Pay using
Online shopping
When you’re ready to check out, choose “credit card” as your payment option. If the retailer partners with
Choosing ’s Pay over time payment plan requires a few extra steps. Follow the same procedure detailed above, but choose Pay over time as your payment option. Then, pick your financing terms (including your interest rate and repayment timeline) and fill out the application. Once completed, you’ll get an instant credit decision.
Pay your first bill
Your payments are automatically withdrawn from the account you connected to the mobile app. You can pay early, though, with no prepayment penalties. To do so, navigate to the “payments” tab on the app and follow the prompts.
How compares to other BNPL companies
Even if you believe aligns with your payment preferences, it never hurts to shop around and research the best BNPL sites and apps. Here’s how stacks up.
Frequently asked questions
Yes — overall, is trustworthy. It was founded in 2005 and has served millions of customers around the world.
However, the BNPL model is no stranger to controversy. BNPL apps are very easy to use and can lead to overspending. According to our most recent data, 48% of BNPL users have regretted buying something with BNPL.
Many BNPL companies (including ) only perform a soft credit check for most types of financing. Soft credit checks don’t negatively impact your credit score — however, if you default on your loan, some BNPL apps report that to the credit bureaus, likely driving down your credit score.
reports payments to the credit bureaus if you use Pay over time, but not for other payment plans. It only reports to TransUnion and as of this writing, what it reports won’t impact your credit score.
Like with any personal finance option, may be a good idea for some, but not for others. BNPL may not be inherently bad, but you could end up in a debt cycle if you repeatedly finance small-dollar items. Check out some BNPL alternatives before deciding if is right for you.
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