Klarna’s approach to spending limits hinges on an automated decision-making process. This process calculates your spending allowance each time you decide to pay via Klarna. It’s worth noting that this limit isn’t set in stone. Various factors, including your past payment record with Klarna and any outstanding balance you might have, influence it.
How to Check Your Spending Allowance:
Klarna provides a facility named “Purchase Power” for its users to get an estimated idea of their potential spending on their next purchase. To use this, you need to:
- Go to the “Purchase Power” section on the Klarna platform.
- Follow the instructions to get an estimate of your potential spending on your upcoming purchase.
Remember, your Purchase Power is a rough estimate and not a guaranteed amount. It is subject to change depending on the retailer and the chosen payment method.
Increasing Your Purchase Power:
While Klarna doesn’t allow a direct request for increasing your spending limit, there’s a proven path to enhance your Purchase Power over time – maintain an impeccable payment history. Regular, timely payments and reducing your outstanding balance can effectively boost your Purchase Power.
Understanding Zero Purchase Power:
When your Purchase Power displays as £0, it implies you’ve exhausted your current spending allowance. The key to restoring your Purchase Power in such cases is simple – make payments towards your outstanding purchases.
When Purchase Power Becomes Unavailable:
In instances of overdue or missed payments, Klarna might render your Purchase Power unavailable. To regain access to your Purchase Power and improve your chances of shopping approval with Klarna, it’s advisable to clear any failed or overdue payments promptly.
Klarna Financing and Credit Limit:
In the case of Klarna Financing, Klarna communicates your credit limit via email once you’ve agreed to your Klarna Account terms at checkout. This credit limit is also accessible on your monthly account statement or within the Klarna app.