What Klarna's credit card is and how to get one
Klarna is a buy now, pay later company that also offers a credit card. The card itself works like a standard credit card — you make purchases, receive a bill, and pay it back over time. The difference is that Klarna's card is designed to work alongside their buy now, pay later service, which splits purchases into smaller payments spread over weeks or months.
To get a Klarna card, you read the Klarna app, create an account, and request a card through the app. Klarna will check your credit and income during this process. If you're approved, the card arrives by mail within 7 to 10 business days. You can also use a virtual card number when ready in the app for online shopping while you wait for the physical card.
The card is issued by WebBank, a Utah-based bank that partners with Klarna. This means your account is governed by banking regulations, and your payments are reported to the three major credit bureaus — Equifax, Experian, and TransUnion.
Key Takeaways
- Klarna's credit card is a standard credit card issued by WebBank that works in stores and online, not just through Klarna's buy now, pay later service.
- You can use the card to split any purchase into four interest-free payments due every two weeks, or pay the full balance at once like a regular credit card.
- The card has no annual fee, but interest rates and credit limits depend on your credit history and income, which Klarna checks when you request the card.
- Payments are reported to credit bureaus, so using the card responsibly can help build your credit score, but missed payments will hurt it.
- Klarna charges late fees and interest on unpaid balances, and you can only use the card with merchants that accept Visa, not exclusively through Klarna.
How the four-payment plan works
When you use your Klarna card at any merchant that accepts Visa, you can choose to split the purchase into four equal payments. Each payment is due every two weeks, starting two weeks after your purchase. There is no interest charged on these four payments, as long as you pay on time.
For example, if you buy something for $100, you pay $25 every two weeks for eight weeks. If you miss a payment, Klarna charges a late fee (the amount varies by state) and may charge interest on the remaining balance. You can also choose to pay the full amount when ready instead of splitting it.
The four-payment plan is different from using the card as a regular credit card. If you don't choose the four-payment option at checkout, the purchase goes on your regular card balance, and you'll owe interest if you don't pay the full balance by the due date.
Interest rates, fees, and credit limits
Klarna does not publish a standard interest rate or credit limit. Instead, both depend on your credit score, income, and payment history. When you request a card, Klarna pulls your credit report and may ask for income verification. Based on that information, they set your credit limit and the interest rate you'll pay on purchases you don't pay off in full.
The card has no annual fee. However, Klarna charges late fees if you miss a payment on the four-payment plan or on your regular card balance. Late fees vary by state but typically range from $7 to $35 per missed payment. If you carry a balance on regular purchases (not the four-payment plan), you'll pay interest at a rate determined when your account opens.
Your credit limit is separate from the amount you can spend using the four-payment plan. You might have a $2,000 credit limit but be able to split a $500 purchase into four payments. Klarna sets these limits independently based on their assessment of your creditworthiness.
How Klarna reports to credit bureaus
Because Klarna's card is issued by WebBank, your account activity is reported to Equifax, Experian, and TransUnion. This means on-time payments help build your credit score, and missed payments or high balances hurt it — just like any other credit card.
Your credit utilization (how much of your credit limit you're using) is also reported. If you have a $2,000 limit and carry a $1,500 balance, that 75% utilization can lower your credit score. Paying down your balance or requesting a higher credit limit can improve this ratio.
The four-payment plan itself may not appear as a separate account on your credit report. Instead, it shows as a purchase on your Klarna card account. If you make all four payments on time, it demonstrates responsible payment behavior to the credit bureaus.
Where you can use the Klarna card
You can use the Klarna card anywhere that accepts Visa — online, in stores, and over the phone. This includes major retailers, grocery stores, gas stations, restaurants, and thousands of other merchants. You are not limited to shopping through the Klarna app or at Klarna's partner merchants.
When you use the card at a non-Klarna merchant, you can still choose the four-payment plan at checkout if the merchant's payment system supports it. However, some merchants may not offer this option. In those cases, the purchase goes on your regular card balance.
You can also link the card to digital wallets like Apple Pay and Google Pay for contactless payments. The virtual card number in the Klarna app works for online purchases before your physical card arrives.
Comparing Klarna's card to other buy now, pay later options
Klarna is one of several companies offering buy now, pay later services. Afterpay, Affirm, and PayPal Pay in 4 also let you split purchases into payments. The main difference with Klarna's card is that it's a full credit card, not just a payment method tied to specific merchants.
Other buy now, pay later services typically work only at partner retailers and don't report to credit bureaus. Klarna's card reports to all three bureaus, which means it can help or hurt your credit score. This makes it more like a traditional credit card than a pure buy now, pay later service.
If you want the flexibility of a credit card plus the option to split purchases, Klarna's card may be useful. If you only want to split purchases at specific stores and don't care about building credit, a traditional buy now, pay later app might be simpler.
What happens if you miss a payment
If you miss a payment on the four-payment plan, Klarna charges a late fee and may charge interest on the remaining balance. The late fee amount depends on your state. Klarna will also try to collect the payment through the app and email.
If you miss a payment on your regular card balance (purchases not split into four payments), the same rules explore as with any credit card. After 30 days, the missed payment is reported to credit bureaus. After 60 days, your account may be sent to collections. Repeated missed payments can lower your credit score significantly and make it harder to borrow money in the future.
If you're struggling to pay, contact Klarna through the app to discuss your options. Some companies offer hardship programs or payment plans, though Klarna's policies vary.
Frequently Asked Questions
Do I have to use the four-payment plan every time I buy something?
No. You can choose to use the four-payment plan for some purchases and pay the full balance when ready for others. If you don't select the four-payment option at checkout, the purchase goes on your regular card balance and you'll owe interest if you don't pay it off by the due date.
Can I use Klarna's card if I have bad credit?
Klarna does check your credit when you request a card, so having bad credit may disqualify you or result in a lower credit limit and higher interest rate. Some people with fair credit have been approved. The only way to know is to request a card through the app — Klarna will tell you whether you're approved.
Does using the four-payment plan hurt my credit score?
Making all four payments on time should not hurt your credit score and may help it by showing responsible payment behavior. However, if you miss payments or carry a high balance on your regular card purchases, your score can drop. The four-payment plan itself doesn't appear as a separate loan on your credit report.
What's the difference between Klarna's card and their buy now, pay later app?
Klarna's card is a credit card issued by a bank and works everywhere Visa is accepted. The buy now, pay later app is a payment method that works only at Klarna's partner merchants. The card reports to credit bureaus; the app typically does not.
Can I get a higher credit limit?
Yes. You can request a credit limit increase through the Klarna app. Klarna will review your account and may approve an increase if you've made payments on time and have a good payment history. Hard inquiries for limit increases may temporarily lower your credit score by a few points.