Has anyone used Clearpay or Klarna at Poundland? What's your experience?

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ukbot-nicolabot@reddit

No one answering question. Just making generalisations. Locked. Removed.

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Matthew94@reddit

Wait until you hear about credit cards.

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VolcanicBear@reddit

Credit cards are normally used in the place of a debit card, and immediately paid off in full.

Klarna has always given the "buy things you can't really afford over a longer period of time" impression.

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WarriorDan09@reddit

Wait until you discover credit card debt. A lot of people aren't able to pay off their credit card monthly

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VolcanicBear@reddit

Which is also grim.

Are you interpreting the fact that our country is in a bit of a shit state as a personal affront or something?

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Erm no? Not sure where you're getting that idea lol. You've completely glossed over the major issue with credit cards and acted as through everyone who uses them does so responsibly. People using them responsibly obviously aren't the people in question here, it's the millions that don't that end up trapped in debt cycles.

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VolcanicBear@reddit

That's pretty grim.

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WarriorDan09@reddit

Yes that's exactly what I'm saying, not sure what point you think you're making by repeating that phrase which wasnt even your comment originally. You were the one glossing over the issue.

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VolcanicBear@reddit

That's pretty grim.

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WarriorDan09@reddit

Wow so witty, so clever.

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VolcanicBear@reddit

That's pretty grim.

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WarriorDan09@reddit

Making yourself look like an absolute clown here 😂 keep going

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VolcanicBear@reddit

That's pretty grim.

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WarriorDan09@reddit

Keep going! Really driving that point home

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VolcanicBear@reddit

That's pretty grim.

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WarriorDan09@reddit

I can do this all day matey, keep going!

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VolcanicBear@reddit

That's pretty grim.

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Suspicious-Rub8976@reddit

You can get a big shop pay 1/3 then spread the other two payments over the next two months, I've done that when I was stuck for essentials, used my last £20 to get a £60 shop, it's interest free as long as you make the payments in time

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Chickenhugga@reddit

I’d hope that if my friends ever got that stuck that I’d know so I could help tbem

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ashyjay@reddit

Same, rather £100 vanish into the ether to help them than them ending up in a debt trap.

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WarriorDan09@reddit

That's a nice notion but a hundred quid isn't going to stop someone falling into a debt trap lol

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sapphire-sky-dragon@reddit

I wish I had a friend like you.

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a2021username@reddit

My friend is against BNPL.

He always says, if you miss a payment they charge you untold amounts and it will mess up someone's chance at getting a mortgage.

My thinking is, if you are not able to keep up payments should you even think about getting a mortgage. The consequences are worse.

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Happy_Chief@reddit

You're right, until you're not.

Some BNPLs offer cheaper prices if you take out credit with them - so its fiscally the right thing at the time. A mistake by your employer in not running payroll on time could find your automatic payments from your bills account not going out as expected.

Suddenly, through no real fault of your own, you can't get a mortgage, despite being liquid and otherwise fold with money.

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cardboard-collector@reddit

vision express tried offering us 20% off to sign up to their credit product

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OdBlow@reddit

Yeah does feel like a bit of a trap for people on lower incomes. We’ve been looking at sofas that we can afford outright but it’s 0% finance for 2 years meaning we can free up the cash for other things or at a minimum, stick it in an account to earn us the interest instead for the 2 years.

We’ve got the cash at the start but if you don’t have that and need the paycheque to come to pay the min each month, that’s a whole different problem. If done sensibly, BNPL is no different to saving up and buying at the end except you get the item at the start. However does rely on a stable income hitting your bank on time. Doesn’t mean it’s unaffordable though.

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Fluffy_Ad2274@reddit

I suspect BNPL will eventually be the subject of massive refunds to consumers who shouldn't have been offered the facility, and considerably overpaid as a result - a bit like what happened with payday loans.

Some people will use them as you say, but many will end up trapped by them.

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OdBlow@reddit

Oh absolutely, I seem to be offered it every time I pay via PayPal even on small purchases and I’m sure I’ve seen it when buying food. Either they somehow know I can afford it or they aren’t doing proper affordability checks. The later seems more likely/profitable…

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jamesckelsall@reddit

I’m sure I’ve seen it when buying food

Iceland accepts both Klarna and Clearpay. Other supermarkets can often be accessed via Klarna (which allows the creation of a one-time-use credit card at otherwise unsupported retailers, but charges fees for that service). Both Klarna and Clearpay allow users to buy gift cards for various retailers, including supermarkets.

Fucking Deliveroo has a partnership with Klarna. For when you need a takeaway, are willing to pay a premium to get it via Deliveroo, but don't actually have enough money for a fucking takeaway.

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reggieko13@reddit

With ones like klarma I don’t think customers pay more.they earn their money from seller (who sales on average more per customer) and then those that are late

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a2021username@reddit

If you use Klarna, there is no charge - Same with clearpay.

Pay on time.

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jamesckelsall@reddit

If you use Klarna, there is no charge

Klarna does now charge a service fee for some BNPL transactions (unless you have a paid subscription), even if you make every repayment on-time.

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jamesckelsall@reddit

it will mess up someone's chance at getting a mortgage.

would this not apply to someone getting a credit card

It's worth noting that until very recently, most BNPL lenders didn't even report to any of the credit reference agencies - meaning lenders often didn't know about BNPL use.

Obviously mortgages in particular tend to check bank statements (so they'd see the transactions), but most traditional non-mortgage lenders (unsecured loans, credit cards, overdrafts*) don't check statements (or do, but only to check income and rough outgoings rather than reviewing transactions in detail) - meaning BNPL use itself didn't generally harm chances of obtaining other credit.

* ^(Obviously most banks will consider transactions from your current account before approving an overdraft for that account (and similar if you take out a credit card or loan with the same bank), but they don't tend to check any other account - so if you had all BNPL transactions going via a second account, you could apply for an overdraft on your primary account and the bank would never know about your BNPL usage.)

It's easy to see why BNPL was so attractive to so many people - interest-free repayment over long periods, with great introductory offers and promises of no harm to your credit report...

It's worth saying that it can (note: it usually isn't, there's lots of conditions) be a good idea to use interest-free credit where it's available - the interest earned from keeping the money in savings until repayment is due means you can effectively save a bit on the transaction. That being said, it's only really true where: - You couldn't get the items at a lower price without credit (any discount from alternative retailers is usually worth more than the interest earned placing the amount into a savings account). - You pay off the full balance before the end of the interest-free period (in some cases with BNPL, having a balance remaining at the end of the interest-free period results in interest being backdated for the entire period). - EVERY repayment is made on-time (late repayment fees will destroy any financial benefit). - Credit is used within reasonable bounds (maxing out credit limits, even interest-free, looks terrible on your credit report as it looks like you can't afford to pay your debts). - You can afford to make the full purchase immediately. - You have the discipline to place the full amount into savings (not investments - it's too short term for a good return on investment to be likely) and keep it there until repayments are due.

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tacticall0tion@reddit

I thought we'd hit the bottom levels of predatory credit when you could klarna a takeaway....

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jamesckelsall@reddit

IMO BNPL for a takeaway is worse.

There's some items from poundland that could be considered essential - meaning in a moment of absolute desperation, it sort of makes sense to use BNPL as long as you have income coming that will cover it (it's still often a bad idea that will spiral, but there's definite logic).

There's never a need to buy an unaffordable takeaway on finance.

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tacticall0tion@reddit

Thats actually a fair point, and I hadn't actually looked at it that way. I actually agree with you.

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buzzlightyear999@reddit

Klarna isn’t just BNPL, it can be used exactly just like a credit card, so it’s interest free if paid off in 30 days or whatever.

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Lanky_Bus_1221@reddit

Are you sure it’s not just the virtual card that you can use the one you can preload money on?

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jamesckelsall@reddit

No - Clearpay is exclusively BNPL, so any retailer that accepts Clearpay must accept BNPL.

Klarna does have a pre-paid option, but AFAIK that option doesn't have different retailer availability - meaning a retailer which can be used for the pre-paid option can also be used for BNPL (assuming the user is approved for BNPL).

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ben_jamin_h@reddit

The worst predatory credit lending, attacking the lowest earners and the lowest spenders. Absolute scum.

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No-Door-3181@reddit

It's good to have options if you need them. I wouldn't use those providers anyway, since you can do the same with Monzo Flex on much better terms.

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OrganicPoet1823@reddit

If you need to use that to shop in Poundland something has gone terribly wrong

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LiorahLights@reddit

This is the most depressing thing I've read this week.

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Joshouken@reddit

Recession indicator

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Nythern@reddit

This is what the collapse of the Soviet Union means for the world.

Debt, which has risen astronomically for most households. We are now going into debt just to get our basic food and shopping.

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buginarugsnug@reddit

What does the collapse of the Soviet Union have to do with klarna being available in Poundland?

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MrStilton@reddit

I've never used it myself (as I prefer to use a credit card which offers some cashback on my spending).

But, I don't agree with the other comments in this thread describing this as grim/depressing/dystopian.

Personally, I don't see how using these services is any different than paying via credit card and paying off your balance in full. If someone's willing to offer you a 0% interest loan, it's perfectly rational to take it.

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evenifihateit@reddit

This has depressed me too much for any more reddit today

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Curious_Orange8592@reddit

That's grim. Don't get me wrong, I'll use those services for purchases like large Lego sets or Jordans but Poundland? 😱

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BestGirlNat@reddit

Good god what has this country come to

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Tzunamitom@reddit

Well, Klarna at Poundland, obviously.

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pruaga@reddit

£1 today, or just 3 easy monthly payments of 34p...

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lad4daddy@reddit

I have used Clearpay in the past when things have been tight, and needed to get to payday. £20 got me an £80 Asda voucher, so was able to buy a lot more food to last me, and just paid off the balance in full when I was paid. It’s a handy thing to have, but can very easily spiral out of control if you are late with payments.

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coleslawontoast@reddit

You know it's bad when you can pay klarna at a poundshop

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HawkwardGames@reddit

Feels grim tbh. BNPL for essentials like food and toiletries just normalises debt for basic living costs. It’s one thing using Klarna for a planned bigger purchase, but financing a Poundland shop feels like vultures circling people who are already skint. Bleak as hell.

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