Klarna 0% interest - negative impact on credit score?

JustMe111111

Hi there - assuming I pay on time, can anyone advise whether using Klarna 0% interest free finance (payable over 3 instalments) will have any negative impact on my credit rating please? My current credit score is excellent and I don't want to impact this negatively by using Klarna, just for the convenience of being able to pay in instalments. Thanks so much in advance for any advice! 

TadleyBaggie

Since your credit score is meaningless and cannot be seen by anyone else, who cares.

Brie

As I understand it these unregulated free for 3 payment systems are not looked on as a good sign from mainstream lenders such as banks when they look at your credit history.  It's similar to the lower end of the credit card range where you might be given a very low credit limit and an exceedingly high interest if you don't pay in full.  It shows that you are a high risk.

That said, if it's just a bit to get you over the seasonal hump and everything is paid off properly those will show as green lights on your credit history.  Which is great.  And if it's a one off and then everything else ticks along nicely there should be no long lasting impact.  If however it's a regular occurrence it potentially indicates a higher risk.

sourcrates

You take out a financial product, you repay on time, all green ticks, all fine and dandy.

Almost 100% of credit granting decisions are made using an automated process, it may or may not be in your next lenders algorithm to check for unregulated credit usage, as all lenders look at different criteria.

If you want to use the service Klarna provides, then by all means do so, but give it no more thought than that.