Trending: BNPL becomes FCA-regulated from 15 July 2026, bringing tougher checks

Does Klarna Affect Your Credit Score in the UK?

Since June 2023, Klarna reports both on-time and missed payments to UK credit reference agencies. That means responsible use can help build your credit, but missed payments can now damage it — a real change from the early days of BNPL.

Last reviewed: 30 May 2026 · 2 min read

Key Facts

Klarna reports payment data to all three UK credit agencies since June 2023
Missed payments can lower your credit score
BNPL becomes FCA-regulated from 15 July 2026

How Klarna affects your credit now

Before June 2023, Klarna's buy-now-pay-later products only did a soft credit check that didn't show on your file. Since then, Klarna reports both positive and negative payment data to Experian, TransUnion and Equifax.

That cuts both ways. Pay on time and you build a record of managed credit, which can help a thin credit file. Miss payments and it can now drag your score down, just like a missed credit card payment.

What changes in July 2026

From 15 July 2026, buy-now-pay-later becomes formally regulated by the FCA, bringing it in line with other credit. Lenders will have to run affordability checks — even on small purchases — and you'll gain the right to complain to the Financial Ombudsman.

For users, this means BNPL becomes a touch harder to get if you can't comfortably afford it, but with stronger protections. The era of frictionless, unchecked instalments is ending.

FAQ

Frequently Asked Questions

Will using Klarna once hurt my credit score? +

Using it and paying on time is unlikely to hurt and may even help slightly by showing managed credit. The risk comes from missed payments, which Klarna now reports and which can lower your score. Juggling several BNPL purchases at once also makes missed payments more likely.

Does paying Klarna on time improve my credit score? +

It can help, especially if you have little credit history, because Klarna now reports on-time payments to the credit agencies. It won't transform your score overnight, but a record of paying instalments as agreed contributes positively, alongside other well-managed credit.

Can BNPL stop me getting a mortgage? +

Heavy BNPL use can be a red flag to mortgage lenders, who may see it as a sign of stretched finances, and missed payments on your credit file can hurt. Once BNPL is regulated from July 2026, it's likely to feature more clearly in lending decisions, so keeping it modest and paid on time is wise.

Topics covered

bnpl klarna credit score

This article is for informational purposes only and does not constitute financial advice. Always do your own research or speak to a qualified financial adviser before making financial decisions.