What is Financing and how does it work?

Klarna’s Financing Account is a credit option offered at the checkout of our partnering online stores that provides you with a revolving account and is similar to a traditional credit card, but without the physical card.

To use Klarna’s financing options, simply select to pay later with financing and choose your preferred payment plan. You’ll be informed of an annual interest rate upfront before you complete the transaction. To apply for the one-time credit agreement complete a simple, 4-step credit application with your personal information. You will know instantly if you are approved and can complete the order right away. The credit is issued by WebBank in partnership with Klarna and allows you to pay for your purchases over time.

As soon as the store ships your order, you will receive an email from Klarna outlining your payment schedule and your purchase will be added to your account balance. If you already have a Klarna credit account the order amount of any purchases you make with the Financing option will be added to your total balance, provided the new purchase does not take you over your available credit limit.

We’ll email you on the 2nd of every month to let you know that your monthly statement is ready. You can view your minimum payment anytime after your first statement has been emailed to you. Your payment will be due on the 26th of every month, and payments will need to be received by 8:00 p.m. Eastern Time to be credited to your account on that same day. At this time, we’re not able to change your due date. However, we’ll remind you of upcoming payments.

Your statements and payments will be visible and manageable in your Klarna App. So make sure to download the Klarna App to stay in full control and never miss a payment!


What payment plans can I choose from?

Flexible Month-to-Month: Flexible Month-to-Month purchases are standard purchases with no fixed-term commitment, similar to a traditional credit line. You decide what’s best for you; you simply need to make at least your minimum monthly payment. These are also sometimes called “standard purchases.”

Planned Payments: Planned Payments is a promotional offer that allows eligible orders to be purchased with a reduced APR. With planned payments, you will have a fixed monthly payment. The APR varies based on the currently available promotions.

Good to know: The Annual Percentage Rate (APR) for standard purchases is 19.99%. However, the APR may vary for special offers and promotional purchases. If you are charged interest, the charge will be no less than $2.00 per month. For more information, please view our terms and conditions.

No Interest If Paid In Full: No Interest If Paid In Full is a promotional offer in which interest is deferred during the promotional period. If the entire balance is paid before the expiration date, no interest will be charged. Keep in mind, you still need to make at least your minimum monthly payment. These are also sometimes called “deferred interest purchases.” To avoid paying interest on No Interest If Paid In Full purchases, pay your promotional balance in full before the expiration date. You can view the expiration date in the “Deferred Interest Calculation” section of your statement. You must also pay at least the minimum payment due each month to avoid paying late fees.


How is the minimum payment due calculated?

Your minimum payment due each month will be the greater of:



2% of the balance of the account (not including promotional orders and past due amounts)
Interest on the account (not including interest on promotional orders)
Late fees, NSF fees, minimum finance charges
Monthly Planned Payment amounts
Any past due amounts

Find more information about your payment options with Klarna here.

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