Business Insider's personal finance team compared compared buy now, pay later loans and found it to be an industry leader.
Klarna can help make purchases more affordable for shoppers through its deferred repayment options that charge zero interest. As one of the major buy now, pay later services, Klarna works with thousands of brands and retailers to allow you to split a purchase up among four even repayments or get a full month to pay off a bill at no extra cost.
Klarna Pros and Cons
Here's a list of the pros and cons of Klarna:
Klarna Pros
- Multiple types of repayment plans available. You can choose between Pay in 4, Pay in 30, or a longer-term financing plan. This type of flexibility allows you to tailor your repayment to your budget.
- No interest charged. You won't pay interest on the Pay in 4 or Pay in 30 payment options. If you choose a long-term finance option, you may pay interest.
- Convenient shopping on the mobile app. Klarna's mobile app is extremely well-reviewed. It has 4.9 stars on the Google Play store and 4.8 stars on the Apple store.
- Soft credit check. When making an approval decision for a Pay in 4 or Pay in 30 plan, Klarna will run a soft credit check. A soft credit check will give the lender a look at your credit history without hurting your credit score.
- Can be used with thousands of retailers. With its expansive network, you'll likely be able to use Klarna at your favorite stores.
Klarna Cons
- Late fee. If you don't make a payment up to 10 days after its due date, you will pay a late fee of up to $7. This fee won't be higher than 25% of the installment payment amount.
- Late and missed payments may be reported to credit bureaus. If you fall behind on payments, Klarna might report them to credit bureaus, which could hurt your credit score.
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- Multiple types of repayment plans offered
- No interest charged
- Convenient shopping on mobile app
- Soft credit check
- Can use with thousands of retailers
- Physical card available
- Late fee
- Late and missed payments may be reported to credit bureaus
Compare Klarna
8.99% to 35.49% fixed (with all discounts)
$5,000 to $100,000
680
- High maximum loan limit
- No fees required
- Competitive APR
- High minimum credit score requirement
- High minimum loan amount
- No in-person support
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
6.49% to 25.29% (with AutoPay discount, rates vary by loan purpose)
$5,000 to $100,000
660
- Competitive APR
- Approval decisions should come shortly after applying
- Loans can be funded the same day
- Wide range of borrowing amounts and terms
- No fees
- Only available to people with good credit
- No pre-approval option
LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
LightStream Personal Loan- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 12 years
- Apply online and you'll receive a response shortly during business hours.
- Receive your funds as soon as the same day
- Loans are made by Truist Bank, member FDIC
6.99% to 35.99%
$2,000 to $50,000
600
- Fast access to funds
- High customer satisfaction
- No prepayment penalty
- Origination fees
- High maximum APR
- Unavailable in a few states and DC
- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 3 to 5 years
- You may get your money by the next business day after your loan is reviewed and approved
- Loans made by Best Egg's lending partners
- Unavailable if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories
Klarna Overview
What Is Klarna?
Klarna is a buy now, pay later (BNPL) lender that allows you to defer the full cost of an item until a later time. It offers multiple repayment options — including ones that don't charge any interest.
Borrowers who can effectively fit items they're buying into their budget might like Klarna to spread out payments over a longer period without forking over the same interest they would with a Klarna, you'll choose between two payment options when you check out: Pay in 4 or Pay in 30 days. With the first option, you split the cost of your item into four interest-free payments due every two weeks, with the first payment due when you get the item. With the second option, you'll receive an invoice for the item due in 30 days, and you'll have to pay off the item by then.
For some large purchases, you may also see the option to get financing over a longer period, usually between three months to three years. Some items come with no interest charges, but it depends on the item and the individual store you're buying from.
Klarna Features and Benefits
Klarna Benefits and Key Features
- Multiple interest-free payment plan options, such as Pay in 4 and Pay in 30
- Klarna can be used online and in-store
- You can shop at thousands of stores with Klarna
- Klarna only performs soft credit checks, so using Klarna payment plans won't impact your credit score
- Quick approval process
Who Should Use Klarna?
rating system that considers a range of factors from fees to customer support. The categories taken into consideration are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
We highlight the strengths and weaknesses of each company in our guides and compare them with those of others that are available so you can decide which BNPL plan suits your needs best.
Klarna FAQs
How does Klarna compare to other buy now, pay later services?
Klarna stands out with its variety of payment options, including Pay in 4, Pay Later, and long-term financing. Compared to other BNPL services, Klarna offers a robust app and the ability to shop in-store for additional convenience. It does charge late fees, unlike some other BNPL services.
Are there any fees associated with using Klarna?
Klarna may charge late fees if payments are missed, and its longer-term financing options come with interest costs.
Can you return items on Klarna?
Yes, you can return items on Klarna. To do so, follow the return instructions from the store where you purchased the item. Then, let Klarna know you've returned the items by making a note of the tracking number. Finally, check your Klarna app for refund updates.
Is Klarna reliable?
Yes, Klarna is reliable to use. Klarna promises that all its users' payment information is handled in a secure manner and that no details are held by its retailers. Also, Klarna will not approve new purchases if you have too much outstanding debt.
Does Klarna accept SoFi?
Klarna accepts the SoFi Mastercard as well as most credit cards, such as Visa, Discover, Mastercard, and Maestro. Capital One and prepaid cards are not accepted.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 08/08/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000— $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your "Loan"), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi's reasonable procedures and requirements to be determined at SoFi's sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
Terms and conditions apply. Offer good for personal loan customers with credit cards and personal loans in their name only and subject to lender approval. To receive the offer, you must: (1) register and/or apply through this landing page; (2) complete a loan application with SoFi within 90 days of your application submit date; (3) meet SoFi's underwriting criteria; (4) apply 50% or more of your loan proceeds directly to your lenders/creditors. Once conditions are met and the loan has been disbursed, the interest rate shown in the Final Disclosure Statement will include an additional 0.25% rate discount. SoFi reserves the right to change or terminate the Direct Pay Rate Discount Program to unenrolled participants at any time with or without notice. It takes about 3 business days for your creditor/lender to receive payment after your loan is signed. You will be responsible for making all required payments to avoid credit card and other loan fees.
