Increase Your Credit Limit With Klarna In 6 Easy Steps [98% Success]

What Is Klarna?

Klarna is an app that lets you buy something now and pay for it over time.

It’s just one of several installment payment plans (like Afterpay and Affirm) you’ve probably seen while shopping online, tempting you to buy things you can’t afford right now by giving you extra time to pay for it.

Here’s a quick history lesson so we know who we’re dealing with: Klarna started in 2005 in Stockholm, Sweden, but its parent company—The Klarna Group—didn’t form until 2014.1 But y’all, in the past few years, this company has exploded. And unfortunately, people are buying into it. By June 2021, the company was valued at $45.6 billion.2Needless to say, they’re doing a lot better than you financially. I said it anyway.

Klarna claims to offer “shopping freedom” to its users with “flexible payments, full transparency, and free rewards.” I don’t know about you guys, but getting roped into monthly payments does not sound like freedom to me. You know what Klarna sounds like to me? A credit card. And you know how I feel about those! Stay far, far away—just like your mom told you to stay away from strangers on the playground.

What is the Max Klarna Limit?

The max Klarna limit only applies to purchases with fixed installment plans. There’s no definite max Klarna limit because users’ purchases are all different from each other. 

The recommended route for Klarna users is to assess their budget for the long term. Also, spending more than you can afford is not a wise choice.

A possibility of additional fees may happen if a user happens to spend beyond the limits. However, it will rarely happen because Klarna can limit it based on the situation.

But some approved Klarna users have more tendency to overspend. It is most probable that some of them can underestimate the total amount of their spending.

Still, the max Klarna limit will mostly depend on the user’s spending habit and how Klarna will assess a specific purchase. 


Common Questions About Klarna

Here are the answers to some other common questions about how Klarna works.

Can You Use Klarna to Pay Bills?

No. While some buy now, pay later financing platforms might allow for bill payment, Klarna is designed strictly for shopping.

Is There a Credit Limit?

As mentioned, Klarna doesn’t specify any preset credit or spending limit. Instead, that’s determined on a purchase-by-purchase basis. So if you’re wondering, “Where can I see my credit limit?” the answer is that you can’t. There’s no way to determine with certainty how much you’ll be able to spend until you actually attempt to complete a purchase with Klarna.

Does Klarna Affect Your Credit Score?

Short-term financing options like buy now, pay later can have an impact on your credit score. Your credit may be affected when you apply, as you make loan payments, or if you happen to miss a payment.

Klarna does not specify whether it reports payments to any of the three major credit bureaus. But it’s possible that if you miss a payment or default on a payment agreement, that might be reported. Also, Klarna may assign your account to a debt collection agency to recover any outstanding amounts that you owe.

Does Klarna Check Your Credit?

Yes, Klarna can check your credit. But whether this involves a soft or hard credit check depends on which payment option you choose.

If you choose the Pay in 4 option, with loans split into four installment payments, then Klarna will use a soft credit pull. If you’re interested in monthly financing with Klarna, then a hard credit check may be required.

A soft credit check will have no impact on your credit score, while a hard credit check can have a small, negative impact.

What Credit Score Do You Need to Use Klarna?

Klarna doesn’t specify any minimum credit score that you need to use its services. But generally, the better your credit is, the easier it may be to get approved with financing through Klarna.

Can You Get Klarna if You Don’t Have a Credit Card? 

Klarna is designed to be a convenient way to pay for purchases online. Not having a credit card isn’t a barrier to qualification as long as you have a sufficient credit history for a soft or hard credit check.

While Klarna can look at your credit, it also considers other factors when making approval decisions. You might be turned down if, for example:

  • You’ve made too many purchase requests in a short period of time.
  • You have a poor payment history for previous Klarna loans.

Rejections don’t negatively affect your credit score. And even if you’re denied Klarna financing once, it’s possible that you could be approved at another time.

Does Klarna Charge Interest?

Klarna charges no interest when you choose the Pay in 4 or Pay in 30 Days options. Both of these buy now, pay later loans are interest free as long as you pay what you owe in full within the allotted time frame.

You may, however, pay interest charges if you use one of Klarna’s financing options. This includes month-to-month financing or planned payments. The annual percentage rate (APR) for purchases is between 0-24.99%, but you may be able to avoid interest if you’re eligible for a No Interest If Paid In Full promotional offer.

Does Klarna Charge Fees?

Klarna can charge fees if you miss a payment. A fee of $7 applies the second time Klarna tries and fails to collect a payment from you.

5. There is no Section 75 protection on purchases

Although you're borrowing when using the Klarna Card, it isn't covered under the Consumer Credit Act like other credit cards.This means if something goes wrong, you won't benefit from Section 75 protection.

Section 75 applies on purchases worth £100 up to £30,000 and means your credit provider is jointly liable if anything goes wrong with your purchase – so if a company goes bust and you don't receive your item, you can make a claim with your credit provider to get your money back.

Klarna Card users will not benefit from Section 75 protection or the Klarna Buyer Protection Policy that comes with its other 'Pay in 30 days' and 'Pay in 3 instalments' products.

However, the card is protected by Visa's chargeback rights, which allow you to claim money back from Klarna if you don't receive an item you've paid for.

Chargeback can be useful when the cost of goods or services is under £100, but chargeback isn't enshrined in law like Section 75.

A closer look at Klarna

Here are a few more things you should know about Klarna.

  • App availability — You can download the Klarna app via the Apple iOS App Store and Google Play Store.
  • Promotional offers — You can get access to exclusive deals and promotional offers through the Klarna app. You can also save items to a wish list and receive notifications when prices drop.
  • Minimum spending requirement — The minimum spend with Klarna is just $10. But you should carefully consider if a purchase that small is worth financing.
  • Rewards — Klarna allows customers to join Vibe, its rewards program. You’ll earn one vibe — Klarna’s version of rewards points — for every $1 spent through the app. You can redeem your rewards for gift cards from Amazon, Best Buy, Sephora and other major retailers.

How Klarna works

Like Afterpay, Klarna is a financial technology (fintech) company that allows consumers to purchase items without paying up-front. Consumers can choose to repay the amount in four interest-free fortnightly instalments or within 30 days. You can finance larger purchases between 6 to 36 months.

With Klarna, there is no sign-up required to use the platform. However, users will need to provide a working debit or credit card, and enough information for Klarna to perform a soft credit check.

Should users decide to repay their purchase in four instalments, they pay the first one upon shipping and the remaining three automatically every two weeks. If a retailer doesn’t display Klarna compatibility, you can shop using the Klarna app, which will provide a “ghost card” number at checkout. Alternatively, you can apply for financing plans or pay 30 days after you purchase an item.

Tips for shopping safely with your Klarna Card

Set up alerts for repayments in your diary or on your phone so you know exactly what to pay back and when. This is particularly useful if you have a number of different repayments to make. You should also be able to view all your Klarna repayments in one place in the app.

Draw up a budget so you know how much money you're paying back each month, and how much money you can spend. Don't be tempted to max your credit limit and make sure you'll be able to repay the amount within the 30-day repayment period before committing to the purchase. Remember that other credit lenders won't be able to see the spending limit on your Klarna card – so think carefully whether you'll be able to meet repayments before applying for credit from other providers.

Make any returns promptly so you don't end up making repayments for something that you want to send back. We've heard anecdotally from BNPL users that refunds can take longer to process if you've paid with a pay later scheme – so it's worth sending your items back asap.

Contact Klarna if you think you might miss a repayment Klarna allows you to snooze your repayments for 10 days if you don't think you'll be able to meet the initial 30-day deadline. Honesty is always the best policy in this situation – contact Klarna immediately if you're struggling.

Listen: find out what our in-depth interviews with BNPL shoppers uncovered in the Which? Money Podcast and why Which? is calling for BNPL companies to be regulated without delay.

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How Do I Pay Klarna?

Klarna offers several options for paying your debt, depending on what kind of payment plan you chose:

  • Pay in 4 or Pay in 30: You'll make payments with a credit or debit card. These payments will be automatically scheduled when you accept the loan, so you won't have to worry about remembering to make them. 
  • Financing: You can turn on autopay or remember to make payments on your own. You can use a debit card or link your bank account with Klarna to make your payments, but you won't be able to use a credit card. 

Klarna accepts all major credit cards, although you can’t use an American Express card to purchase a one-time card. You also can’t use prepaid debit cards. 

Be careful about using credit cards to make your payment. If you don’t pay off your full balance each month, you're essentially trading an interest-free loan for a loan with a much higher interest rate. 

What Happens If I Don’t Pay Klarna?

If you're having a hard time coming up with the money to pay back your Pay in 30 plan, Klarna allows you to postpone your payment for a fee. 

Otherwise, late or missed payments will incur fees. On a Pay in 4 plan, you'll be charged a late fee of $7. For financing accounts, you’ll pay a $35 late fee, although Klarna won't charge a fee that's bigger than your minimum payment due. 

Other downsides of not paying include being denied future loans and potential damage to your credit score if Klarna refers your past-due account to collections.

If you’re facing financial hardships, reach out to Klarna’s customer service team to ask for help planning your payments.

Does Klarna Increase Your Spending Limit? 

Yes, Klarna can increase your spending limit, but only for the current purchase and if they approve it. It’s the only known way for Klarna to increase the spending limit.

As mentioned before, only Klarna can increase the spending limit of a Klarna user. It also depends on whether they find a user to be trustworthy and pay them on time.

Even though there’s no actual limit on the amount of purchase you can make with Klarna, the actual limit is not known immediately. Using Klarna for your next purchase is the only way to find out.

After that, you can find out whether Klarna can increase your spending limit or not.