Does Klarna affect your credit score?
Written by
Emily Tye
Reviewed by
Amy LancashireBuy Now, Pay Later (BNPL) services like Klarna are popular ways to spread the cost of purchases, but yes, they can affect your credit score. This could be in both a positive way (if you make all payments on time) and in a negative way (if you miss payments). Let me break it down for you.
How does Klarna affect your credit score?
Klarna offers three main ways to spread your payment:
Pay in 3: Split the cost into three interest-free monthly payments.
Pay in 30 days: Get up to 30 days to pay for your order in full.
Financing: A longer-term credit agreement with interest.
Since June 2022, Klarna has shared data from its Buy Now, Pay Later products (Pay in 3 and Pay in 30 days) with Experian and TransUnion. This means your repayments on these products, whether on-time or late, are reported to your credit file. So:
⬇️Any missed or late payments can show up on your credit file and cause your score to lower.
⬆️ But, if you use Klarna responsibly and make your payments on time, you can actually boost your score, which may make it easier for you to apply for a loan, mortgage or credit card.
Note: The soft credit check Klarna runs for 'Pay in 3' and 'Pay in 30 days' doesn't affect your credit score when you apply. 'Financing' is different: it's a fixed-term credit agreement with interest, regulated under the Consumer Credit Act 1974. Taking it out involves a full (hard) credit search that's recorded on your file and visible to other lenders, and your repayments on it are reported to credit reference agencies as well. So with Financing, both the initial search and any missed payments can affect your score.
What happens if you miss a Klarna payment?
Missing a payment has real-world consequences:
Late fees: Since March 2023, Klarna have charged a late fee (typically £5 per instalment), though these are capped to prevent debt from spiralling (at 25% of the order value).
Credit score damage: Unlike in the early days of BNPL, missed payments on any Klarna product (including Pay in 3) are reported to credit agencies. This can lower your credit score.
Debt collection: If a balance remains unpaid, Klarna may pass your debt to a collections agency, which can have a more severe impact on your credit file.
The 'Pay in 3' service will take your payment automatically from your debit or credit card, however 'Pay in 30 days' payments are manual. To ensure you never miss a payment, it's a good idea to set up the 'Autopay' feature. To do this:
Download the Klarna app and navigate to the control centre.
Tap 'Payment methods'.
Select Autopay.
Enter your card details (or select a card from the list if you've previously done so).
Toggle on Autopay.
Is Klarna regulated in the UK?
Yes. From 15 July 2026, the interest-free Buy Now, Pay Later products Klarna offers (known as Deferred Payment Credit) are regulated by the Financial Conduct Authority. Before this date, this type of BNPL was not regulated.
Here's what that means when you use Klarna:
Affordability checks: providers must check you can afford the repayments before approving an agreement.
Clear information upfront: you should be told how much you're borrowing, when repayments are due, how much they'll be, any late fee, and the protections you have.
Support if you fall behind: if you're struggling to repay, your provider has to help.
The right to complain: if something goes wrong, you can escalate to the Financial Ombudsman Service.
This covers Klarna's interest-free products. Klarna's 'Financing' option is a credit agreement with interest and was already regulated under the Consumer Credit Act 1974.
These rules cover how BNPL is sold and managed. They don't change the fact that Klarna already shares your repayment data with credit reference agencies, which has applied since 2022 and is separate from the new regulation.
Read more about what can affect your credit score in our full guide.
This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions. Always check terms before using Buy Now, Pay Later services.
