Does Klarna affect your credit score?
*This article is based on information correct as of March 2025*
Buy Now, Pay Later services like Klarna, Clearpay etc. have become popular ways to spread the cost of purchases. But, do they impact your credit score?
How does Klarna work?
Klarna offers three payment options:
Pay in 3 - split the cost into three interest-free payments.
Pay Later - get 30 days to pay for your order.
Financing - a longer-term credit agreement with interest.
Does Klarna affect your credit score?
Since June 2022, Klarna has been reporting payment information to Experian and TransUnion. This means that your Klarna payment history, including on-time payments and missed payments, will be visible on your credit report if you check via Experian or TransUnion. And, when you use Klarna financing - this involves a formal credit agreement, meaning: a hard credit check is performed, your repayments are reported to credit agencies and late or missed payments can lower your credit score!
So, what if you miss a Klarna payment?
Firstly, late fees may apply. Klarna can also pass your debt to a collections agency and if you’re using Klarna financing, missed payments can really damage your credit score.
Want to build your credit score? Consider using a credit card for purchases instead of Buy Now, Pay Later.
If used responsibly, Klarna won’t harm your credit score - but missed payments on Klarna financing can. Always check terms before using Buy Now, Pay Later services.
This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions.