Does klarna negatively effect your credit rating?

jazzyja

I do use it often. I have growing kids so its mega handy for buying them shoes and clothes and spreading the cost over 3 months. I've used them a few times over the years and they've never done a hard search nor does it actually appear on my file. Im planning to apply for a mortgage next year, do you think it would effect it me using klarna? I know ive probably answered my own question as it doesn't appear on file but when it comes to me being assessed they would see ive had it a few times in the past? Thanks 

D3xt3r5L4b

Probably not no if it’s paid off in good time etc. 

A_Random_Man

If you use the pay in 3 instalments than no as this is not reported to the CRA

adamp87

A_Random_Man said:

If you use the pay in 3 instalments than no as this is not reported to the CRA

Is that right even though it’s a line of credit? How do they decide if they can offer you that or not? Just interested

A_Random_Man

Yes this is correct it is on their website https://www.klarna.com/uk/blog/does-klarna-impact-my-credit-score/, the only offer one product which is a more longer term loan which they do a credit search as it's a regulated product. I also use Klarna myself and have not seen it on any credit file. I would recommend that the OP clears any payments to Klarna before making any application as they may factor this in the affordability assessment. 

Klarna also do a soft credit search to determine whether someone is eligible for buy now pay in 30 days or the instalments  

onthemend88

Klarna use Transunion (Credit Karma) and when I have bought through them in the past, they have only ever performed soft searches.