Does Klarna Affect Your Credit Score?
Expert analysis of how Klarna impacts your credit - soft checks, hard inquiries, and what happens if you miss payments.
One of the most common questions we receive is whether using Klarna affects your credit score. The short answer: it depends on which Klarna product you use.
💡 Quick Answer
Pay in 4 uses a soft credit check that does NOT impact your score. Monthly Financing may require a hard check. Missed payments on any product can hurt your credit.
Soft Check vs Hard Check
Soft credit checks (also called soft inquiries) don't affect your credit score. These are used for:
- Pay in 4 applications
- Pay in 30 Days
- Pre-qualification offers
Hard credit checks can temporarily lower your score by 5-10 points. These may be used for:
- Monthly Financing over $200-500
- Some longer-term payment plans
What Happens If You Miss a Payment?
This is where Klarna can significantly impact your credit:
- First missed payment: Klarna attempts to charge again, late fee applied
- 30+ days late: May be reported to credit bureaus
- 60+ days late: Account may be sent to collections
⚠️ Important
Klarna began reporting to credit bureaus in 2022. Missed payments can now appear on your credit report and affect your score for up to 7 years.
How to Protect Your Credit When Using Klarna
✅ Best Practices
Set up autopay, only buy what you can afford, track payment dates in the app, pay off early if possible, and keep your Klarna balance low relative to your spending limit.
Does Klarna Build Credit?
Currently, on-time Klarna payments are NOT typically reported to credit bureaus, so they won't help build your credit history. However, missed payments ARE reported. This means Klarna can hurt your credit but won't help build it.