Klana - no discount alllowed

MrFrugalFever

Ebe_Scrooge said:

MrFrugalFever said:

Now that Klarna reports to CRA’s, I’d be dubious at the impact this would have and how lenders may perceive this.

The original question was about retailers giving/not giving discounts for those who use Klarna.

However, as far as your credit history goes, it would most likely be viewed as a positive - you've been given a loan on which you've repaid all instalments correctly (assuming you do, indeed, make the correct payments when required!).  A lender will not have any idea (or care) whether you paid a fair price for the goods - what they will be interested in is that someone was prepared to give you a loan, and that you made all agreed repayments on time.  Which will actually go some way to building up a positive credit history.

Whilst I agree this is what should happen in principle, but does it in reality? Are they not treated in a similar vain as ‘payday’ loans, which we all know are often regarded as detractors on reports.

In relation to the OP’s reference to discounts, I do agree that there should be no disparity, however, the retailer is not obliged to offer any discount at all so the options offered are kind of take it or leave it offers.

Perhaps the OP has a CC that enables them to BT for 0% or close to and this could benefit them from the discount perspective as opposed to Klarna.

Ebe_Scrooge

MrFrugalFever said:

Ebe_Scrooge said:

MrFrugalFever said:

Now that Klarna reports to CRA’s, I’d be dubious at the impact this would have and how lenders may perceive this.

The original question was about retailers giving/not giving discounts for those who use Klarna.

However, as far as your credit history goes, it would most likely be viewed as a positive - you've been given a loan on which you've repaid all instalments correctly (assuming you do, indeed, make the correct payments when required!).  A lender will not have any idea (or care) whether you paid a fair price for the goods - what they will be interested in is that someone was prepared to give you a loan, and that you made all agreed repayments on time.  Which will actually go some way to building up a positive credit history.

Whilst I agree this is what should happen in principle, but does it in reality? Are they not treated in a similar vain as ‘payday’ loans, which we all know are often regarded as detractors on reports.

Must admit I don't know for sure in all cases, but I'd hazard a guess that they're less "frowned-upon" than a payday loan.  Buy-Now-Pay-Later is certainly not classed as a negative in the algorithms where I work.

I guess the bottom line, from a consumer perspective, is that it can be a good way to spread the cost.  However, if you "have" to use it because you can't really afford to buy the item, and don't have the discipline to save up beforehand and pay cash, then one would question whether you should be buying the item at all.

easy

Anis28 said:

Two different retailers have told me the instore or online discounts can’t be applied if paying for goods via klana. Why is this? It doesn’t feel right that people needing to spread the cost over longer are penalised and need to pay more than someone who can pay that day. As if that’s the case it’s not really interest free as you’re paying 10/15 or whatever % more as you’re not getting the discount. Any views or ideas on this. Just felt wrong so wanted to post especially as expect a lot of people may use klana over Christmas Thanks for reading 

I'm afraid it is because the retailers lose money by using Klarna.  When you pay by Klarna the retailer doesn't receive the money you have paid until several days later,  and Klarna has deducted fees from that payment before handing it over. 
The retailer has other costs involved too,  as it costs time and money for them to set up the link to Klarna in the first place,  and there are bookkeeping costs involved for them too.  
That's why they won't offer a discount on a sale via Klarna. 

I'm a bookkeeper,  I do the accounts for several online retailers.

User_101122

About 18 years ago I negotiated a discount on a guitar from £899 to £799 which was a hefty discount.  They did stipulate that this was conditional upon it being a credit card sale cash and wouldn't apply to credit sales.  I therefore paid by Visa on a 0% credit card, left with my discount and paid the £799 off within the interest free period.
Roll onto 2010 I bought a guitar in the same store off the same guy who discounted me down from £2000 to £1850 with a number of goodies thrown in.  Again he stipulated that this has to be by cash or credit card, when I enquired why he said that for credit payments they pay a commission to the finance company which with the discount already given would eat into their margin even further.  I didn't ask about the credit card fees in case he factored that in and insisted on cash Lol.
I suppose if you are relying on a credit line other than your own credit card you are at a weaker negotiating position as you have to shop at a retailer that offers store credit, a retailer is unlikely to give a discount on a product if they feel you are unable to shop elsewhere.
I did however buy a mountain bike in halfords last year using Klarna and still obtained 10% Forces discount on it, so it probably depends on the retailer.