Klarna does not always run a hard credit check, but it may pull your credit report in some cases

Klarna, the buy-now-pay-later service, uses a soft credit inquiry for most purchase decisions. A soft inquiry does not affect your credit score and does not appear on your credit report to other lenders. However, Klarna may occasionally run a hard inquiry — which does show up on your report and can lower your score by a few points — depending on the transaction size, your account history, or the merchant.

The company also performs identity verification and fraud checks that do not involve your credit file at all. These checks look at your name, address, phone number, email, and bank account information to confirm you are who you say you are. Klarna's decision to approve or decline you depends more on your payment history with them and your bank account status than on your traditional credit score.

Key Takeaways

  • Klarna typically uses a soft credit pull that does not affect your credit score or show up on your credit report.
  • A hard inquiry may occur on larger purchases or if Klarna suspects fraud, and this will lower your score slightly and remain visible for two years.
  • Klarna approves or declines you based mainly on your payment history with them, your bank account verification, and identity checks — not your credit score alone.
  • You can see whether Klarna ran a hard or soft inquiry by checking your credit report through Equifax, Experian, or TransUnion.

When Klarna runs a soft inquiry versus a hard inquiry

For routine purchases under a few hundred dollars, Klarna almost always uses a soft inquiry. The company checks your identity and verifies your bank account, but does not pull your credit file in a way that lenders can see. This is why many people with low credit scores or no credit history can still use Klarna.

Klarna may switch to a hard inquiry if the purchase amount is large, if you are a new user and the transaction seems high-risk, or if you have missed payments with Klarna before. A hard inquiry will appear on your credit report under the name "Klarna" and will remain there for two years. Each hard inquiry can lower your score by 5 to 10 points, though the impact fades over time.

You will not receive a warning before Klarna runs a hard inquiry. The best way to know whether it happened is to check your credit report 30 to 60 days after your purchase. You can request a free report once per year from each of the three major bureaus — Equifax, Experian, and TransUnion — through AnnualCreditReport.com.

What Klarna actually checks to approve you

Klarna's approval decision rests mainly on whether your bank account is active and whether you have paid Klarna on time in the past. The company does not require a minimum credit score. If you have never used Klarna before, the company verifies your identity and checks for fraud signals — things like a mismatched address or a phone number that has been used for multiple accounts in a short time.

Your payment history with Klarna matters far more than your credit score. If you have missed payments or defaulted on a Klarna plan, you are much more likely to be declined on future purchases, even if your credit score is high. Conversely, if you have a low credit score but a clean payment record with Klarna, you can still be approved.

Klarna also checks whether your bank account has sufficient funds to cover the first payment. If your account is overdrawn or flagged for fraud, Klarna will decline you. The company does not require a minimum bank balance, but your account must be in good standing.

How a Klarna hard inquiry affects your credit score

A hard inquiry from Klarna will lower your credit score, but the impact is usually small and temporary. Most scoring models drop your score by 5 to 10 points per inquiry. The effect is largest when ready after the inquiry and fades over the next few months as other activity on your report takes precedence.

Hard inquiries remain on your credit report for two years, but after about 12 months they stop affecting your score at all. If you are planning to explore for a mortgage, auto loan, or other major credit product in the next few months, multiple hard inquiries from Klarna or other lenders can add up and make you look riskier to traditional lenders.

Soft inquiries, by contrast, have zero impact on your score and do not appear on your report to other lenders. Only you and Klarna can see that a soft inquiry happened. This is why most Klarna users see no change in their credit score after using the service.

Why Klarna does not rely on credit scores

Klarna was designed to serve people who do not have a long credit history or who have damaged credit. The company makes money by charging merchants a fee (usually 2 to 8 percent of the purchase), not by charging you interest. Because Klarna earns money regardless of whether you pay on time, the company can afford to take on customers that traditional lenders would decline.

Instead of betting on your credit score, Klarna bets on your bank account. If your account is active and you have money to cover the first payment, Klarna assumes you can manage a short-term payment plan. The company also uses machine learning to spot fraud patterns and to predict which customers are likely to default, based on thousands of data points that have nothing to do with your credit file.

This approach means Klarna can approve you faster than a traditional lender — often in seconds — and without penalizing you for past credit problems. However, it also means Klarna has less incentive to report your payment history to the credit bureaus, so using Klarna responsibly will not help you build credit the way a credit card would.

How to check whether Klarna ran a hard inquiry on you

The only reliable way to know whether Klarna ran a hard inquiry is to check your credit report. You are may have access to to one free report per year from each of the three major bureaus. Visit AnnualCreditReport.com, enter your name, address, date of birth, and Social Security number, and request your report from Equifax, Experian, or TransUnion.

Look for an entry under "Inquiries" or "Hard Inquiries" that lists Klarna or Klarna Financial Services. If you see it, note the date. If you do not see Klarna listed, Klarna ran a soft inquiry instead. You can also sign up for free credit monitoring through services like Credit Karma or Experian, which will alert you when a hard inquiry appears on your report.

If you see a hard inquiry from Klarna that you did not authorize, contact Klarna when ready through the app or website. Unauthorized inquiries are rare, but if one appears, Klarna can dispute it with the credit bureau on your behalf.

Frequently Asked Questions

Will using Klarna hurt my credit score?

Most Klarna purchases involve only a soft inquiry, which does not affect your score. If Klarna runs a hard inquiry, your score may drop 5 to 10 points temporarily. The impact fades over time and disappears after 12 months, though the inquiry remains on your report for two years.

Can I get approved for Klarna if I have bad credit?

Yes. Klarna does not require a minimum credit score and approves many customers with low scores or no credit history. Approval depends mainly on bank account verification and identity checks, not your credit file. However, if you have missed payments with Klarna before, you may be declined.

Does Klarna report my payments to the credit bureaus?

Klarna does not report on-time payments to the credit bureaus, so using Klarna responsibly will not help you build credit. However, Klarna may report missed or defaulted payments, which can hurt your score. Check your Klarna account terms or contact customer service to confirm their reporting practices.

What is the difference between a soft and hard inquiry?

A soft inquiry does not affect your credit score and does not appear on your report to other lenders. A hard inquiry lowers your score by a few points and appears on your report for two years. Only hard inquiries are visible to mortgage lenders, credit card companies, and other creditors.

How can I avoid a hard inquiry from Klarna?

Keep your Klarna account in good standing by paying on time, and avoid very large purchases on your first use. Klarna is more likely to run a soft inquiry on smaller purchases and on accounts with a history of on-time payments. There is no way to may provide Klarna will not run a hard inquiry, but these steps reduce the likelihood.