Jan 22, 202010 min read

Klarna Mythbusters.

Klarna K logo

by Klarna

It’s no coincidence that the Swedish translation of ‘Klarna’ is ‘clear.’ We want to be simple and transparent in everything we do – because life is complicated enough already. Being smoooth means being crystal clear with you about how our products work and what our T&Cs mean for you and your money.
Some of what we’re doing here in the UK is a little bit new, which is why we want to tackle specific questions about our products head on. We always want to make sure you know where you stand. If something isn’t clear, we will help explain it. Our dedicated customer support team are always on hand to answer your questions, big or small.
Klarna by name, Klarna by nature.


Klarna instalments allow you to spread the cost of your purchase over 3 equal payments, meaning greater purchasing power and less hassle. The payment for each instalment will automatically be collected from the debit or credit card you entered at checkout. Your first instalment will be collected live at the till by the retailer, and instalments 2 and 3 are scheduled 30 and 60 days later, respectively. Full transparency, full control, minimum effort.

How will I know if I’m eligible to use Instalments?

Just like Pay in 30 days, you must be at least 18 to use Instalments, and eligibility is determined through an affordability assessment and ‘soft credit check’. But remember, a ‘soft check’ will not affect your credit rating or be visible to other lenders.

Does use of Instalments require a full or ‘hard’ credit check?

No, a full sometimes referred to as a ‘hard’ credit check is not required to use Instalments, but we will carry out a ‘soft search’ and an affordability assessment, where you will be asked to provide or confirm some details of your financial situation. This is in your best interests, so we can check you are able to meet your repayment obligations.

Will I be charged interest or fees?

No. We charge no interest, fees or additional repayment costs on your purchase. You can simply spread the cost of your purchase over 60 days – but it won’t cost you a penny more than if you paid for it in one go upfront. Simple.

Can I pay off my purchase before the due date?

No, three equal payments for Instalments purchases are automatically collected monthly from your debit or credit card. So you can manage your cash flow without maxing out your card!

What would happen if I don’t pay off my purchase?

Firstly, we would automatically try to collect payment for your purchase from the debit or credit card you entered at checkout. If we’re unable to collect your payment on the scheduled due date we’ll make one further attempt to automatically collect payment two days later. If this attempt also fails, we will issue you a statement for the full outstanding order amount which will become payable 15 days later. As always, we’re committed to clarity of communication, and will notify you when a payment is due two days before we attempt to collect it. Your credit score will not be impacted by using Klarna’s ‘Pay later’ products even if you have failed to pay on time.

What happens if I cancel or return my order between payment windows?

Changed your mind? No problem. As soon as the retailer has accepted your cancellation or return, we will cancel any future scheduled payments as well as refund any amounts already settled.

What should I do If I am being charged fees for using Instalments with a Credit Card?

We have been made aware that some customers are being charged fees by their banks when using our Instalments product with a Credit Card.

If you bank with Tesco Bank, Halifax or Bank of Scotland and have spotted any additional charge on your purchase please contact your bank and raise a dispute. We would also advise changing the card associated with your Instalments account to avoid further fees. You can do this at any time in the Klarna app. Simply, download the app (here) and once you are logged in, select your Instalments order and hit the ‘change card’ button.

We would like to make clear that Klarna is not charging this fee, it is the banks themselves. The root cause of the issue is thought to be that the card issuers are classifying Klarna’s Instalments product in a way that allows them to levy a cash advance fee according to their own terms and conditions. Klarna is working with providers to try and resolve this issue as soon as possible, but it will need to be a combined effort, as we are unable to solve it alone.

Pay in 30 days

Pay in 30 days is a form of invoice which allows you to pay for items later, after your items have been shipped. Here in the UK, our Pay in 30 days product has no interest or fees, which lets you make sure you love your purchase before paying anything.

Can I buy as much as I’d like?

Pay in 30 days is designed to give you a better shopping experience, whether that’s buying a new coat or expanding your shoe collection (trust us, we get it)! But you should only spend what you can afford to pay back. To make sure of this, we take time to get to know you as a customer before enabling you to spend more. From the first transaction we set limits for how often and how much you can spend using Pay later. Limits are determined on a case-by-case basis using affordability checks and a soft credit check, and just because you are accepted for Pay later once, doesn’t mean this will always be the case.

Can anybody use Pay in 30 days?

In short, no. It wouldn’t be responsible of us to offer this to everyone. Pay in 30 days is only available to shoppers who can use it safely and in a sustainable way. Pay in 30 days acceptance depends on several factors including your previous credit history, your age (you must be at least 18) and a soft credit check. We also have eligibility checks in place and don’t let anyone make a second Pay in 30 days purchase until the payment on their first transaction is complete.

What information do you use to carry out a soft credit check for Pay in 30 days? Will my credit score be affected?

A soft credit check does not affect your credit score and is not visible to other lenders. It stays strictly between us, you, and the agency we use to conduct the credit check. Your credit rating will not be impacted if you don’t complete your Pay in 30 days transaction on time. We will however send you multiple payment reminders and work together with you to try and make sure this doesn’t happen.

Will I be charged for late payments?

No. There are no interest, or late payment fees with Pay in 30 days in the UK, ever. We understand that life is busy, and sometimes we all need a little prompt to stay on top of things. So to help you pay on time, we’ll alert you by email before a payment is due. Payment is typically due 14 or 30 days after the order is shipped, depending on the store.

What happens if I don’t pay my bills?

For our Pay in 30 days service, if the debt remains unpaid after several months despite multiple payment reminders being sent, the account will be classed as in arrears and then passed to a debt collection agency. We’d never try to catch you out and will do everything we can to help you to find alternative payment arrangements. Your credit score will not be impacted by using Klarna’s ‘Pay later’ products even if you have failed to pay on time.


Financing allows you to spread the cost of your purchase into equal monthly payments. This means you can buy those bigger purchases when you need them by splitting the cost into monthly instalments.

How will I know if I’m eligible to use Financing and what checks will you carry out?

When you select Financing in the checkout, you will be notified that you are about to undertake a full credit check. A full credit check, often referred to as a hard credit check will review your previous credit history, we also conduct an affordability assessment, review your age (must be 18+) and several other factors. We’ll use this information to decide whether or not you are eligible. A hard credit check can influence your credit rating. However, we encourage all our customers to spend responsibly. And successful use of Financing – paying it off on time, management of monthly financials – can improve your credit score in the long term.

How will I know when I need to pay?

We’ve got your back. We’ll always tell you when your monthly statement is ready and when it’s time to make your payment either by text or email depending on what you choose. If a payment is due, you need to pay at least the minimum amount each month (though only paying this amount will increase the total interest you have to pay). That’s why we recommend you pay the interest-saver amount shown on your statement each month which will keep you on track to pay your purchase in full in the originally specified Financing promotional period.

What is the maximum Annual Percentage Rate (APR) I could be charged?

The highest APR rate on Klarna Financing is 18.9%. It will never be more than that, no compound interest. Each of our retail partners may have different APR rates depending on how they’ve chosen to use our service, so it’s worth checking direct with the retailer what your rates will be, but remember – never over 18.9%! Here’s an example of how it works: if you make a £100 purchase, and use Financing to split your payments, you’ll pay us £34.39 each month for 3 months. That means your overall repayment to us would add up to £103.17. Simple.

How long do I have to repay with Financing – how many months can I spread it over?

The retailers we work with can choose to offer customers between 6 to 36 month payment terms. When you’re presented with the Financing option at the retailer’s checkout, it will be made clear what the specific payment time period is.

What happens if I get into trouble, and can’t make my repayments?

Money worries are stressful, and we’re not here to make that stress any worse. That’s why we have a specially trained team to step in and help you should you run into any difficulties when it comes to meeting your repayments. We’re here to find a solution that works best for you. You can contact our customer services team if you want to talk via our App (24/7 live-chat) or on 020 300 50833.