What the Klarna Credit Card Is
Klarna is a buy now, pay later service that also offers a credit card. The card itself works like a standard credit card — you get a card number, make purchases, and pay a monthly bill. The difference is that Klarna also lets you split purchases into smaller payments at checkout, even if you are not using the card.
The company is based in Sweden and operates in the United States through a partnership with WebBank, a Utah-based bank that issues the actual card. When you use the Klarna card at a store or online, the transaction goes through Visa's network, so most places that take Visa will take it.
Klarna makes money two ways: interest and fees from cardholders, and fees from merchants when you use the buy now, pay later feature. Understanding which applies to you depends on how you use the card.
Key Takeaways
- The Klarna card charges interest on purchases you do not pay off in full each month, with rates that vary based on your credit history and the current market.
- You can split any purchase into four interest-free payments at checkout, whether you are using the card or not, though late payments trigger fees.
- The card itself has no annual fee, but you will pay interest on any balance you carry past the due date.
- Klarna reports your card activity to the three major credit bureaus, so on-time payments help your credit score and missed payments hurt it.
- The buy now, pay later feature is separate from the card and works through Klarna's own payment system, not through Visa.
How the Card Works vs. the Buy Now, Pay Later Feature
The Klarna card and the buy now, pay later feature are related but separate. When you use the card as a regular credit card — swiping it or entering the number online — you are using Visa's payment network. You get a monthly bill, and if you pay it in full by the due date, you owe no interest.
The buy now, pay later feature is different. At checkout on participating websites, or through the Klarna app, you can choose to split a purchase into four equal payments due every two weeks. The first payment is due at checkout, and the other three follow. This feature charges no interest if you pay on time, but a late fee applies if you miss a payment.
You do not need the Klarna card to use the buy now, pay later feature — you can use it with a debit card or bank account. But if you have the card, you can also use it to pay for the installments themselves, which means you could end up carrying a balance on the card.
Interest Rates and Fees
Klarna does not publish a single interest rate for the card. Instead, the company says rates vary based on your creditworthiness and current market conditions. This is common among credit card issuers, but it means you will not know your exact rate until you are approved and receive your card agreement.
The card has no annual fee. There is no fee for using the buy now, pay later feature if you pay on time. If you miss a payment on an installment plan, Klarna charges a late fee — the amount varies but is typically $7 to $10 per missed payment.
If you carry a balance on the card itself past the due date, you will pay interest on that balance at your card's annual percentage rate (APR). Interest accrues daily and is added to your next bill.
How Klarna Reports to Credit Bureaus
Klarna reports your card activity to Equifax, Experian, and TransUnion — the three major credit reporting agencies. This means your payment history on the Klarna card affects your credit score. Paying on time helps your score; missing payments or carrying high balances hurts it.
The buy now, pay later feature does not automatically appear on your credit report unless you miss a payment. However, Klarna may report missed installment payments to the credit bureaus, which would show up as a negative mark on your credit history.
If you are trying to build credit, using the Klarna card responsibly — making purchases and paying them off in full each month — can help. If you are already managing other credit cards well, adding the Klarna card may have a small temporary impact on your score due to the hard inquiry Klarna runs when you explore.
When the Buy Now, Pay Later Feature Makes Sense
The four-payment installment plan is useful if you want to spread out a purchase without paying interest, as long as you can afford all four payments. Because the first payment is due when ready, you are not actually delaying the full cost — you are just breaking it into smaller chunks.
The feature works best for planned purchases where you know you have the money coming in over the next six weeks. If you are unsure whether you can make all four payments, using it is risky because a single missed payment triggers a late fee and a potential credit report entry.
If you are comparing this to a regular credit card, the advantage is that there is no interest if you pay on time. The disadvantage is that you have less flexibility — you must make four specific payments on four specific dates, whereas a credit card lets you pay any amount by the due date.
Comparing Klarna to Other Credit Cards
Klarna's main selling point is the buy now, pay later feature built into the card. Most traditional credit cards do not offer this. However, many credit cards offer rewards — cash back, points, or miles — on purchases, and Klarna does not.
If you are looking for a card that earns rewards, a traditional card from a bank or credit union will likely serve you better. If you want the flexibility of splitting purchases into interest-free payments and do not care about rewards, Klarna is worth considering.
The lack of an annual fee puts Klarna in line with most mainstream credit cards. The interest rate you receive will depend on your credit history, so comparing Klarna to other cards requires knowing your own rate first. If you have good credit, you may find lower rates elsewhere. If your credit is newer or less established, Klarna may be competitive.
What Happens If You Miss a Payment
Missing a payment on the Klarna card works like missing a payment on any credit card. Your account goes past due, a late fee is charged, and interest continues to accrue on your balance. If you miss a payment by 30 days or more, Klarna reports it to the credit bureaus, which damages your credit score.
Missing a payment on a buy now, pay later installment triggers a late fee when ready. If you miss multiple installments, Klarna may close your account or refer the debt to a collection agency. A collection account on your credit report is a serious negative mark that can affect your ability to borrow for years.
If you fall behind, contact Klarna as soon as possible. The company may be willing to work out a payment plan or waive a single late fee if you have a good history. The sooner you reach out, the more options you typically have.
Frequently Asked Questions
Can I use the Klarna card anywhere Visa is accepted?
Yes. Because the card runs on the Visa network, you can use it at any merchant that takes Visa — online, in stores, and over the phone. The buy now, pay later feature only works at participating retailers, but the card itself works everywhere Visa does.
Do I have to use the buy now, pay later feature?
No. You can use the Klarna card as a regular credit card and ignore the installment feature entirely. You will still get a monthly bill and can pay it off in full to avoid interest, just like any other card.
What credit score do I need to get approved?
Klarna does not publish a minimum credit score requirement. The company reviews your full credit history, income, and other factors. People with fair credit have been approved, but approval is not may provide for anyone. The best way to know is to explore.
Does Klarna do a hard inquiry on my credit?
Yes. When you explore for the Klarna card, the company performs a hard inquiry, which appears on your credit report and may lower your score slightly. This is standard for credit card applications. The impact is usually small and temporary.
Can I pay off my installments early?
Yes. You can pay off any remaining installments at any time without penalty. Paying early does not earn you a discount, but it does free up your money and reduce the risk of a missed payment.