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Klarna provides “buy now, pay later” payment plans for popular retailers such as Macy’s, Wayfair, and Sephora. It’s similar to companies like Zip and Sezzle, which also offer zero-interest short-term loans at checkout.

Though we recommend paying for something in full whenever possible, BNPL plans may make sense for buyers purchasing a necessary item, as long as the payments are affordable.

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How does Klarna work?

Klarna has a pay-in-four payment plan that allows customers to divide their purchase into four equal installments that are due every two weeks, with the first due at checkout.

For instance, if your purchase is $200, you would pay $50 at the checkout. The remaining three $50 payments would be billed to your debit or credit card every two weeks until the full $200 was paid.
Installments are interest-free, but the company charges a late fee if your payment is more than ten days late. The late fee is either $7 or 25% of the installment, whichever is less. After two failed attempts to obtain payment, Klarna will also pause your account, preventing you from using the service further.
There is no penalty for making an early payment or paying off your entire balance before the final due date.

In addition to its Pay in 4, Klarna provides other financing options, including an interest-free Pay in 30. Instead of paying at the time of purchase, customers have 30 days after the item ships to pay for their purchase. According to the company, this plan allows online shoppers to try out items before paying anything.


Klarna also has a traditional loan option available at select retailers, with repayment terms of up to two years. These loans may have interest rates of up to 24.99% APR.

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Should you make use of Klarna?

Klarna is a reputable BNPL loan provider. However, because BNPL loans can lead to overspending, We advise using them only to help pay for a necessary expense. Before agreeing to the loan, carefully read Klarna’s terms.

Klarna could be a good choice if you:

  • Can make timely payments: Klarna has a simple no-interest plan, and the only fee it charges is a late fee, so if you never miss a payment, you essentially get the service for free. Klarna may be a particularly low-cost option if you need financing and are confident you can make the payments.
  • If you want a BNPL plan that earns rewards, you can join Klarna’s free rewards program and earn one point for every dollar you spend by downloading the Klarna mobile app. Points can be redeemed for rewards redeemable at partner retailers.
  • Want buyer protection: Klarna provides buyer protection to its BNPL customers, which is a benefit that not all BNPL lenders provide. If you have a problem with your purchase, such as it not being delivered on time, you can file a dispute, and Klarna will pause your payment until the problem is resolved.

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