Credit Building > How to Handle a Klarna Late Payment Step-by-Step

How to Handle a Klarna Late Payment Step-by-Step

Wollit Team4 minute read · Updated 26th February 2025

Missing a payment deadline with Klarna can happen to anyone. Perhaps you forgot the due date, experienced temporary financial difficulties, or encountered a technical issue when attempting to pay. Whatever the reason for your Klarna late payment, it's important to address the situation promptly to minimise potential consequences. This step-by-step guide will help you navigate the process and resolve the issue effectively.

Step 1: Understand the consequences of a missed Klarna payment

When you miss a payment with Klarna, several things can happen. First, you may incur late fees that add to your outstanding balance. Additionally, Klarna might restrict your ability to make future purchases using their services until the missed payment is resolved.

After a missed payment, Klarna typically attempts to collect the payment multiple times over the following days. If these attempts are unsuccessful, Klarna may add the missed amount to your next scheduled payment, potentially creating a larger financial burden.

One of the more serious consequences is that persistent late payments might be reported to credit reference agencies. This reporting could negatively impact your credit score, making it more difficult to obtain credit in the future. Understanding these potential outcomes can help motivate prompt action to resolve the situation.

Step 2: Check for a grace period or payment extension options

Before panicking about a missed payment, check whether Klarna offers any flexibility with your payment schedule. Klarna allows you to extend your payment due date once per order, giving you additional time to arrange payment. However, this extension option is not available for all payment plans, particularly for financing agreements.

To check if an extension is available for your order:

1. Log into your Klarna account or app
2. Navigate to the specific order with the late payment
3. Look for an option to "Extend Due Date" or manage payment settings
4. Follow the prompts to request an extension if available

If the extension option isn't available or you need additional assistance, consider contacting Klarna's customer service directly. They may be able to provide alternative solutions based on your specific circumstances and payment history.

Step 3: Review Klarna's late payment fees

Understanding the potential financial impact of late payments can help you prioritise resolving the issue. Klarna charges late fees if payments are not made within the specified timeframe, though these fees vary depending on the total value of your order.

For orders over £30, a standard late fee of £5 may apply for each missed payment. For smaller orders under £30, the late fee is capped at 25% of the purchase price. These fees can accumulate if payments remain outstanding for extended periods.

To avoid incurring these fees, ensure sufficient funds are available in your linked payment method before the scheduled payment date. If you've already missed a payment, making the payment as soon as possible can prevent additional fees from accruing.

Step 4: Assess the impact on your credit score

Depending on the type of Klarna product you're using and how long the payment has been overdue, missed payments may be reported to credit reference agencies. This reporting could negatively affect your credit score, which in turn might impact your ability to obtain mortgages, loans, or other credit products in the future.

Borrowing more than you can afford to repay or consistently missing payments may also result in Klarna restricting your access to their services. They may decline future applications or reduce your spending limits based on your payment history.

It's worth noting that not all Klarna products are reported to credit reference agencies in the same way. Short-term payment options like "Pay in 30 days" might be treated differently from longer-term financing arrangements. However, persistent non-payment of any Klarna product could eventually lead to negative credit reporting.

Step 5: Resolve the missed payment promptly

Once you understand the situation, take immediate action to resolve the missed payment:

1. Log into your Klarna account through the app or website
2. Check the status of your missed payment and the current amount due
3. Select the payment method you wish to use and complete the payment

If you're unable to pay the full amount immediately, contact Klarna to discuss your options. Depending on your circumstances, they may allow you to settle the balance in instalments or offer alternative arrangements to help you manage the debt.

For recurring financial difficulties that make it challenging to meet payment obligations, consider seeking advice from free debt counseling services such as StepChange or Citizens Advice. These organisations can provide guidance on managing your finances and developing a sustainable repayment plan.

Step 6: Understand Klarna's debt collection process

If payments remain unpaid after multiple reminders and attempts to collect, Klarna may eventually transfer the debt to a collection agency. This escalation typically occurs only after Klarna has made reasonable efforts to contact you and arrange payment.

When a debt is transferred to collections, the collection agency may add their own fees to the outstanding balance. The debt must then be settled either with Klarna or directly with the collection agency, depending on the stage of the process.

Having a debt in collections can have serious implications for your credit profile and financial reputation. To avoid this outcome, it's always best to communicate with Klarna proactively if you're experiencing payment difficulties. For more information about how Klarna handles debt collection, you might want to explore our guide on debt collectors and Klarna.

Step 7: Prevent future late payments

After resolving a late payment issue, take proactive steps to prevent similar situations in the future:

1. Set up payment reminders: Use calendar alerts, smartphone notifications, or the Klarna app's reminder features to stay aware of upcoming payment dates.
2. Consider automatic payments: If available, set up automatic payments to ensure you never miss a due date. Just ensure you have sufficient funds in your account on the payment date.
3. Review your budget regularly: Assess your income and expenses to ensure you can comfortably afford any Klarna payments you commit to. Avoid overextending yourself with multiple Buy Now, Pay Later arrangements simultaneously.
4. Keep your payment information current: Ensure your card details, expiry dates, and billing address are up to date in your Klarna account to prevent technical payment failures.
5. Monitor your spending: Use the Klarna app to track your outstanding obligations and upcoming payments, helping you maintain awareness of your financial commitments.

If you've experienced payment declines in the past despite having sufficient funds, you might want to explore our guide on understanding payment declines to identify and resolve underlying issues.

Taking control of your financial future

Managing a Klarna late payment effectively requires prompt action, clear communication, and a commitment to preventing similar issues in the future. By following the steps outlined in this guide, you can address the immediate problem while developing better financial habits for long-term success.

Remember that occasional financial difficulties happen to most people at some point. What matters most is how you respond to these challenges and the steps you take to maintain your financial health moving forward. With the right approach, you can resolve payment issues efficiently and continue to use Buy Now, Pay Later services responsibly as part of your overall financial strategy.

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