Shopping Smarter: Understanding Klarna’s Impact On Your Credit Score

What you can do if you want to get approved right now.


Klarna is a very popular service that enables consumers to pay for goods and services over time. One of the main reasons why it has become so popular is that it allows you to pay for things online over a series of installments without accruing interest. With Klarna, shoppers can complete transactions within just a few clicks from wherever they are as long as they have an internet connection.

Let’s take a closer look at Klarna, how it can impact your credit score and what you can do if you want to get approved right now.

The company was first founded in Sweden in 2005 and was credited to make the online shopping process simpler. Retailers can partner with Klarna to enables their customers to pay for goods and service through Klarna. The primary credit option that Klarna offers is Buy Now Pay Later or BNPL.

Many customers around the world have come to be big fans of the flexibility that Klarna offers, especially when they can’t afford to cover the cost of purchases upfront. The company makes it money by charging retailers for processing payments on their behalf.

How do purchases through Klarna normally work?

Customers can buy items through Klarna and pay in full within 30 days without being charged interest. However, they can also pay over a longer period of time but are charged interest for this.

How will using Klarna affect my credit score?

Klarna can affect credit scores in two ways. The first way it can affect your credit score is when you first make an application for credit. This is because the company will run a check on you, which can bring your credit score down a few points.

However, if you’re only borrowing for 30 days or paying in three installments they will normally only run a soft check on you. This search won’t appear on your credit file and it can’t be seen by other lenders.

If you want to borrow for a longer period of time such as over six to 36 months, the company will run a hard credit check, which will appear on your credit file.

Can using Klarna help my credit score?

If you manage your debt responsibly, Klarna may help you build your credit score. However, you can run into problems if you forget when your payments are due and therefore miss them, or if you simply can’t afford to make them.

Will I need a good credit score to use Klarna?

Klarna hasn’t set a minimum credit score for those wishing to use its service.

However, it’s likely to examine your credit report before it decides whether to lend to you or not.

When a credit check is carried out, the company will verify your identify using your details and assess information on your report to gain a better insight into your financial behaviour.  It will then decide whether to offer you credit.

If you have used the service before and have always paid back on time, there’s a good chance that you will be approved again.

What is Klarna Pay in 3?

Pay in 3 is a Klarna service that lets you spread the cost of your purchase across three installments. You don’t need to pay interest on these. You’ll make payment one when you make the purchase and the second 30 days later. The third and final payment needs to be made 30 days after this.

If you fail to make multiple repayments, the debt could be passed to a debt collection agency. This means a default could be added to your credit report. A default can make it much harder to borrow money in future. Klarna will normally run a soft credit check when you make a Pay in 3 application.

What is Klarna Pay in 30 Days?

This option allows you to receive your order and pay for it up to 30 days later without paying interest. A soft credit check will be run if you apply for this kind of finance. You can use the Klarna app to pay off your balance early or extend the due date if you need to. It’s definitely a good idea to download the app if you’re using Klarna as it can help you stay on top of your debt. The app can also send you important notifications.

Klarna Financing

Klarna Financing is the service that offers longer-term borrowing and requires a hard credit check. This service is designed for high-value purchases and requires you to sign a formal credit agreement. Klarna will report your Financing activity to credit referencing bureaus, but this can work in your favor if you manage your credit well. ay off everything in full and on time and this could make it easier to obtain personal loans and even mortgages in future.

How can I improve my credit score so I can use Klarna?

Steps you can take to boost the likelihood of being approved by Klarna include boosting your credit rating, putting yourself on the Electoral roll and avoiding applying for several forms of credit in a short period of time.

Try to pay off existing debts on time and get hold of a copy of your credit report so you can see if there are any errors on it that could be bringing down your score. If you do spot any mistakes, you can get in touch with the reporting bureau or lender to get these resolved.


Klarna can affect your credit score in a number of ways. These include the hard checks it carries out when you need longer-term financing and the reports that it will make if you make your payments late. However, it can also help you to improve your credit score if you pay everything on time.

If you do want to use Klarna to spread the cost of payments on the items you want, make sure you understand the terms and conditions clearly so you can comply with what you’re agreeing to.