How does Klarna work?<\/h3>
Klarna partners with a huge range of brands like boohoo, ASOS and PrettyLittleThing. When you shop with one of these stores, you can select Klarna as your payment method at the checkout. <\/p>
In the UK, Klarna doesn\u2019t charge any interest on its \u201cPay in 30 days\u201d or \u201cPay in 3 instalments\u201d plans. But the service\u2019s \u201cFinancing\u201d option is more like a credit card and this does charge interest (representative APR 27.90% variable). You can find out more about each plan below.<\/p>
Klarna offers 4 payment structures for delaying payments for those who want to pay via Klarna:<\/p>
- Pay in 30 days.<\/strong> This is a credit option that allows you to complete your order without paying. After your goods are shipped, you\u2019ll receive an invoice with up to 30 days to pay the full amount.<\/li>
- Pay in 3 instalments.<\/strong> This credit option allows you to spread the cost of your purchase equally over 2 months. It requires an affordability assessment (not a full credit check) and no interest is charged. Payments are due first at the time of ordering, and then 30 and 60 days later.<\/li>
- Financing.<\/strong> This is a regulated financial service and it allows you to split your payments into monthly instalments over 6-36 months. Like a loan or a credit card, it requires a full credit check and can charge interest \u2013 currently 27.90% APR representative. At the checkout, you can choose the term of the finance deal and you\u2019ll be told how much interest will be payable \u2013 retailers have the option to offer different deals. You have to pay at least the minimum amount each month (if you only pay the minimum, though, this will increase the total interest amount). Your monthly statement will show an \u201cinterest-saver\u201d amount and paying this will keep you on track to repay your purchase within the originally agreed term. Your credit score can be impacted by the Financing option.<\/li>
- Sofort.<\/strong> Also known as \u201cPay Now\u201d, Sofort allows you to make a fast and easy payment of your online purchases using your online banking details.<\/li><\/ul>
How to use Klarna: Step-by-step video<\/h3>
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\n 14:42<\/div>\n<\/div>\n - Pay in 3 instalments.<\/strong> This credit option allows you to spread the cost of your purchase equally over 2 months. It requires an affordability assessment (not a full credit check) and no interest is charged. Payments are due first at the time of ordering, and then 30 and 60 days later.<\/li>