There is competition in all industries, businesses, and even applications. Usually, we can get several alternatives for any product or service we may want, and each has its benefits.
This is the case for Buy Now Pay Later apps. We find many options, among which we get Affirm and Klarna. Because of this, we may wonder which of the two would be better to make our payments, and today we have come to take you out of the doubt.
Are affirm and Klarna the same?
No. Both are Buy Now Pay Later methods, but they work through different apps, have different ways of paying fees, and are not applied for in the same way.
Affirm or Klarna?
Before we decide which of the two apps is better, we will first tell how they work, the interest, how many installments they are paid in, and the benefits they offer.
|Payments and interest||4 biweekly payments with 25% APR||4 biweekly payments without interest, and 36 months of credit with 24.99% APR|
|Stores||Walmart, Amazon, Overstock and Pottery Barn||H&M, Sephora, Bed Bath & Beyond, Etsy, Macy's and Oakley|
|Credit score||Both perform credit checks|
|Late payment fees||No fees||$7 to one-fourth of the overdue installments|
Payment options and interest
In the case of Affirm, it offers different ways to pay off your debts. You can choose to pay biweekly or monthly.
The bi-weekly payments are divided into four payments, of which you must pay 25% of your total at the time of purchase. The rest will be divided into equal parts with the remaining installments. In this option, you do not have to pay interest.
For the monthly payments, you can make them for six months or one year, with an interest rate of 10% to 30% APR. In both Affirm options, automated payments can be set up.
On the other hand, Klarna also offers the option to pay in 4 interest-free payments. In addition, you can choose to pay 30. That is, you will be able to pay the amount of your purchase after 30 days. Finally, they also offer 36-month payment plans with an interest rate of up to 24.99% APR.
Which stores can I use them at?
The list of both is long. However, we can mention the main ones of each that offer different benefits.
Affirm is accepted in hotels, vacation plans, Walmart’s official website, its physical stores, Amazon, Overstock’s website, and Pottery Barn.
Then there is Klarna, which is accepted mainly at H&M, Sephora, Bed Bath & Beyond, Etsy, Macy’s, and Oakley.
Could using any of these apps affect my credit score?
This is up to you. As long as you pay your debts on time, you don’t have to worry about your score, but if you don’t, it will be affected. In Affirm’s case, users with late payments are notified by Experian. In addition, having late payments could affect future credit approvals.
Both Klarna and Affirm perform a soft credit check on applicants. This type of check does not affect credit scores. Klarna can be used in the UK and the US, with the difference being that they only report credit to UK agencies.
Are there any late payment fees?
Affirm does not have late payment fees, but Klarna does. If you do not pay your installments on time, you can receive a fee somewhere between $7 to a quarter of the late installment.
So… Which is better?
After everything explained above, we can see that each has its pros and cons. However, we believe that Klarna is the better option.
You don’t have to worry about anything as long as you meet your payment quotas. You will be able to enjoy the benefits it offers with its 36-month payment plan, which plans to pay your purchase 30 days later or make payments in 4 interest-free installments.