Credit Building > Is Klarna Safe? Here's What You Need to Know

Is Klarna Safe? Here's What You Need to Know

Wollit Team1 minute read · Updated 18th February 2025

Wondering about Klarna's safety as a payment option? The short answer is yes - Klarna is a legitimate, secure payment service that's regulated in the UK. However, understanding how it works and its potential impact on your finances is crucial for using it safely.

Is Klarna Trustworthy?

Klarna has established itself as a major player in financial technology since its founding in 2005. As a licensed bank in the EU and regulated service in the UK, it partners with over 200,000 retailers globally. This background and regulatory oversight provide a strong foundation of security for users.

How Klarna Protects Your Information

Klarna takes several measures to protect your financial data:

Bank-grade encryption for all transactions
Real-time fraud monitoring systems
GDPR compliance for personal information
Regular security updates and audits

Understanding Payment Safety

When you use Klarna, your payment information is encrypted and protected. They don't share your card details with retailers, and transactions are secured with the same protections as standard bank transfers. For credit card payments, you maintain your usual consumer protection rights, including Section 75 protection for eligible purchases.

Impact on Your Credit Score

While Klarna is technically secure, it's important to understand how it might affect your credit:

Pay in 3 or Pay in 30: These options typically involve only a soft credit check, which doesn't impact your score. However, Klarna now reports payment history to credit agencies, so missed payments could affect your credit score.

Financing Options: Longer-term financing requires a hard credit check that can temporarily lower your score. Making regular payments can help your credit, but missing them will harm it.

Using Klarna Responsibly

To use Klarna safely:

Monitor your payment schedules carefully and ensure you have sufficient funds for automatic payments. Only make purchases you can comfortably afford to repay. Keep your account information secure and enable two-factor authentication where available.