Inside Klarna
Aug 5, 20203 min read

Protecting our customers is important to us.

Fran Ereira profile picture

by Fran Ereira

Klarna is transparent about the fact that we do a credit check on each of our customers before they make their first purchase with us.

In fact, we’re proud of our approach.

Why do we do a credit check? Simple. Because it’s the right thing to do, to make sure our product is suitable for an individual. And to protect someone who may be potentially vulnerable from getting into a difficult situation.

Not every buy now pay later provider takes this important step, and that’s a shame.

It’s all about us being a responsible lender. We want to make sure we’re helping our customers make the right financial decisions for their circumstances, and we really don’t want to provide credit to someone who may get into difficulty using it.

So how does this check work and what does it mean?

As part of your first transaction we do a broad assessment based on several considerations, one of these is requesting an independent external credit agency Illion to provide your credit score. The check has no impact on your credit score, however the fact that we have checked is visible on your report.

We may check again in certain limited circumstances, usually if there has been no activity on a customer’s account for an extended period. That’s because, in this case, we may need to make sure that an individual’s circumstances have not changed during the period they have not used Klarna.

Naturally, a positive, regular repayment record with Klarna will help ensure your ability to check out with Klarna in the future without the need for further checks.

What do we do if a customer does get into difficulty when using our products?

Thankfully, in most cases a late repayment is simply due to oversight or a temporary issue and is soon rectified. However, in some rare cases the issue is more difficult. Our customer service team is highly trained and if a customer is experiencing hardship then we will work directly with that customer on a plan to help them fulfill their outstanding payment.

Add to this the fact that we purposely go out of our way to avoid our customers incurring late fees. We just don’t like late fees! That’s why they’re strictly capped and we’ve introduced the ability to snooze a repayment by 14 days.

Doing the right thing by our customers and being a responsible lender is important to every member of our team. That’s why we started our Mindful Money program that is being rolled out through our Extra O blog and other channels. We will continue to add helpful tips and insights from experts like Canna Campbell to help you shop mindfully and in a financially sustainable way.

If you are experiencing any difficulties and need help with your Klarna repayments, please contact our customer service team directly via the app, we are here to help.