Klarna vs Affirm: which one to choose?

Klarna To affirm
Amount due on purchase 25% As low as $ 0
Refund conditions Pay 25% every 2 weeks Varies according to the type of loan
Interest None if paid on time 0% or 10% to 30%
Credit check required Soft credit check Varies according to the type of loan
Late fee $ 7 Nothing
Popular brands available Tommy Hilfiger, Bed Bath & Beyond, Sephora, Nike Platoon, Target, Best Buy, Walmart.com
Other financial products Pay in 30 days without interest
Funding from 6 to 36 months Virtual card numbers
Virtual card numbers
Affirm Savings Account Affirm Credit Card

Klarna vs. Affirm: terms

Klarna and Affirm both offer “buy now, pay later” (BNPL) financing for purchases at participating retailers. Four-payment financing is Klarna’s primary option, while Affirm’s repayment terms vary depending on the lender and the size of your purchase.

When you make a purchase with Klarna’s quarterly payback loan product, you immediately pay 25% and then the remaining balance is divided into three installments made every two weeks. Within six weeks, your entire purchase is refunded without interest or fees if you pay on time.

Affirm offers customers several reimbursement options at checkout. The repayment tenure varies and ranges from popular four-way loans to loans up to 36 months. Affirm offers loans up to $ 17,500, while purchases under $ 50 must be repaid within 30 days. Depending on the retailer you buy from, you may need to make a deposit at the time of purchase.

Klarna vs Affirm: credit requirements

During the four-way payment approval process, Klarna performs a soft credit check on your credit history. It does not affect your credit score and does not appear on your credit report. Klarna does not have a minimum credit score requirement for its pay-in-four credit product. Although Klarna does not report on-time payments for back-pay loans to the credit bureaus, she can report missed payments.

However, if you want to take advantage of Klarna’s long term financing options for up to 36 months, a serious credit check is required. Approval will be based on your credit score and payment history.

When you create an account with Affirm, it will perform a credit check to prequalify you for purchases. Your credit score can be affected by a purchase, your payment history, the amount of credit you’ve used, and the length of time you opened your account.

Klarna vs Affirm: interest and fees

Klarna does not charge any interest or fees as long as your payments are made on time. When you miss a payment, Klarna will try to collect the payment once again. If payment is not made on the second attempt, the missed amount will be added to the next payment with an additional $ 7 fee added.

There are no hidden costs with Affirm. He doesn’t charge late fees on his loans, even if you pay late. Affirm has funded over 17 million transactions to date and has yet to invoice a late charge. The company earns money by charging companies a commission for managing the financing, and some clients pay interest on their loans.

Klarna vs. Affirm: mobile app

With Klarna and Affirm, you can shop online or through a mobile app. On the mobile app, you can perform standard actions such as viewing your purchase history, tracking deliveries, viewing your payments, and updating your payment method.

Klarna’s app is available for both Apple and Android. In the app you will find new offers every day with exclusive offers and discounts for Klarna users at over 200,000 retailers. And if an American online retailer doesn’t offer Klarna, you can create a virtual card number to make a purchase and pay in four. When you join Klarna’s free rewards club called Vibe, you earn rewards on your purchases and unlock a $ 5 welcome reward after making your first payment.

The app provides automatic price drop alerts on items saved on your wishlist and you can share your wishlist with family and friends so they know what gifts to buy from you. The more you use Pay-in-Four when shopping with Klarna and paying your bills on time, you’ll unlock more purchasing power with a higher spending limit and receive even more exclusive deals and offers.

The Affirm app is available for both Apple and Android also. There are over 11,500 merchants who offer financing through Affirm. You can shop online or in a physical store with the mobile app. In the app, you can browse offers from participating merchants and receive exclusive offers with funding as low as 0%. The app also allows you to open a high yield online savings account with no minimums or fees.

Klarna vs Affirm: other products

While four-way shopping As the cash register grows in popularity, Klarna and Affirm also offer other financing options to their customers.

Pay in 30 days or Funding from 6 to 36 months: If you don’t want to use Klarna’s four-month financing, you can choose “Pay in 30 days” or six- to 36-month financing. Pay in 30 loans have no interest and are best for people who want to order things to try, return what they don’t like, and then pay the rest. Your loan balance will automatically be debited from your bank account or credit card 30 days after your purchase date. The standard interest rate on Klarna’s six- to 36-month finance options is 19.99%. Late payments on long term loans are charged up to $ 35 per incident.

Virtual card: For stores that don’t offer Klarna at checkout, you can create a virtual card online or in the app that works like a credit card. This is a single-use card that can be used at any online store located in the United States. Your purchases are treated as quarter payment transactions and require an upfront payment of 25% and three payments of 25% each every two weeks.

Affirm’s loan periods often extend beyond the four bi-weekly payments for traditional Buy-It-Now and Pay-On-Pay services. When you make a purchase, you are presented with options and you can choose the number of payments you want to make. This makes it easier to block payments that fit your budget. You’ll never pay more than what you see at checkout because Affirm doesn’t charge any hidden fees.

Affirm savings account: In addition to loan products, Affirm also offers the Affirm Savings Account, which is insured by the FDIC, high yield savings account which has no minimum balance or charge. Interest rates vary over time, but as of May 29, 2021, the offered interest rate is 0.65%. Affirm announces that this rate is 13 times higher than the national average. You can open your account with just one cent.

Credit card: Affirm will soon be launching a credit card that will allow customers to split large purchases into smaller, more economical payments. Each qualifying purchase over $ 100 can be broken down into four easy payments, just like quad repayment loans. The card will have no annual fee, no late fee and no prepayment charge. While you cannot open this card today, there is a waiting list you can sign up for.

Frequently Asked Questions (FAQ)

How do Klarna and Affirm work?

Klarna and Affirm are point-of-sale finance companies that allow customers to buy now and pay over time, much like a credit card works. The main difference is that most Buy It Now services make instant credit decisions on every transaction and don’t charge interest if you make your payments on time. You’ll pay 25% upfront, then be charged 25% of the original purchase amount every two weeks until your balance is fully paid six weeks later.

What is the minimum credit score for Affirm and Klarna?

Neither company discloses the minimum credit score you need to be approved. In general, higher credit scores are more likely to be approved for a loan. Since quarterly loans are short term in nature and 25% are paid off immediately, these loans tend to have a high approval rating. Since quarterly loans are so short, they usually don’t get reported to the credit bureaus unless a borrower starts to miss payments. For longer term loans, your credit score is a bigger factor in the decision with Affirm and Klarna.

Does Klarna or Affirm Affect Your Credit Score?

Like most Buy It Now and Pay Later services, Klarna and Affirm use a flexible credit check when approving your transactions. They do not report your quarterly repayment loans or your payment history at credit bureaus. Since these loans are closed within six weeks if you make all payments on time, the payment history is not long enough to be worth reporting to the offices. However, missed payments can be reported to the credit bureaus, which could negatively affect your credit score.

Longer term loans generally require a serious credit investigation and these loans are reported to the credit bureaus. Provided you make each payment on time, these loans could help you build a stronger credit history.


To determine if Klarna or Affirm is the best buy now, pay later, we analyzed each service’s features, interest rates, fees, and more. We looked at their loan options, the number of stores accepting their financing, and their impact on users’ credit scores.


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