Benefits - Your Debit Account is replaced by Klarna's Virtual Cards(Secure Payment) You're making Installments that can range from pay in 4, or 6 Months to a year and so on. With that being said, you're saving so much Money up front, instead of paying out right like with a Credit Card. Also, the more you responsibly use them the more your Purchasing power goes up. When you use this Card in store, Klarna pays for your entire Purchase upfront, and then your purchase is split up automatically into separate payments over time.
I actually loved the old card that they're now replacing. You basically paid off in full in four installments. Anything you purchased. There was a small fee during the initial purchase, but it's better than the 30% interest rate. They're about to apply to the new card to use it in the same fashion.
Hey Gustav , very good video . I can do better editing in your videos which can help you to get more engagement in your videos . Pls lmk what do you think ?
so, they only do BNPL in 4: #1 25% @purchase, #2 in 2wks 25%, #3 in 2wks 25%, & finally #4 in a wks last 25% = 100% Total purchase paid in full. OR AM I WRONG ??
There is actually some benefits. If something happens to the product or it doesn’t arrive at all Klarna is responsible not you. Because you are using their credit they have an obligation to help you. You can also see your spendings later on as a reminder what you spend on. It can also be good when buying clothes because if you do return the product you don’t have to pay anything because you never paid in the first place. There are benefits but you also have to use a credit card wisely. :)
If you use it like this then yeah, it's quite bad. However you can use it when you have the money and don't need it for anything else, transfer the money tI o a savings account and get the interest for the month. When you have to pay you just take the original payment amount and keep the interest. Of course you have to be quite diligent when doing so as not overextend yourself but that's also the case for credit cards. Basically, as I see it, using any vehicle to spend money you don't have can lead to similar issues, be it credit cards, BNPL or anything else. However, if you do have the money to spend, BNPLs + parking the money in some interest-bearing asset is a valid option that can be compared to using credit cards strategically, which, considering the channel this comments are on you wouldn't consider always a bad idea. Bottom line is: BNPLs can be predatory, so can credit cards. They might have some systemic implications and debating if they should be allowed to exists is a valid position argument to have. However, given this channel's perspective of strategic use of consumer credit products(credit cards) for the rewards I think BNPL belongs to similar-ish category and can be compared as another option when paired with interest-bearing risk-free savings product to park the money in the meantime.
A three months free interest credit is much better than paying cash. Why? Because people can invest their money and earn interests, instead of blowing them on shopping. That's a business mentality. No airline in the world buys plane in cash, they all buys in credit. why spending your hard earned $1000 at once, when you have the option to pay $333.4 per month in 3 months?
I us d klarna because I had to buy an upgraded turbo since mine. Blew. I needed my car back plus had to pay mechanic ECT. It helps because I was able to get it done right then
