Last updated: 4 November 2026. General information, not financial advice.
Buy Now, Pay Later is everywhere: at the checkout for clothes, school shoes, even food shopping. Split it into three, pay nothing today, no interest. It feels harmless, and used carefully it can be. But lots of people now worry: does Klarna affect my credit score? Will it stop me getting a mortgage? And what’s changed with the new rules?
This guide explains how BNPL works in the UK, which credit reference agencies can see your plans, what the 2026 regulation means for you and how to use it without it causing problems. It’s part of my debt and credit UK guide.
What changed in July 2026
Since 15 July 2026, most new Buy Now, Pay Later agreements in the UK (the FCA calls them “deferred payment credit”) are regulated by the Financial Conduct Authority. For agreements taken out from that date, the FCA says:
- Lenders must check you can afford it before lending
- You must get clear information before you agree, including repayment dates, amounts and late fees
- If you miss a payment, the firm must contact you, explain what happens next and support you if you’re struggling
- You can complain to the Financial Ombudsman Service if you’re not happy with how the firm handles a complaint
- Section 75 protection may help if something goes wrong with an eligible purchase over £100
Agreements taken out before 15 July 2026 aren’t covered by these new protections.
Does Buy Now, Pay Later affect your credit score?
It can. The answer depends on the provider and on how you use it.
Which agencies can see your BNPL plans?
According to MoneySavingExpert’s research (checked November 2026):
| Provider | Experian | Equifax | TransUnion |
|---|---|---|---|
| Klarna | Yes | No | Yes |
| Clearpay | No | No | Yes |
| PayPal Pay in 3 | No | No | Yes |
Providers change their reporting, so check each provider’s own website for the latest.
How it can affect you
- Paying on time: usually unlikely to harm your file, and some agencies may treat on-time repayment as part of your history.
- Missing payments: can be reported to credit reference agencies and stay on your file for six years, like any missed payment.
- Lots of active plans: even if you pay on time, mortgage lenders and other lenders can see BNPL plans on reports that include them, and many plans at once can make you look stretched.
- Credit checks: applying for BNPL usually involves a soft check, which other lenders can’t see. Since regulation, affordability checks are stricter, which may affect how much you’re allowed to spend.
Is Klarna bad for your credit score?
Not automatically. Klarna reports to Experian and TransUnion. If you pay on time and don’t have lots of plans running at once, it’s unlikely to cause a problem. If you miss payments, it can harm your credit file.
Klarna’s late fees depend on the product and agreement. Its UK information says a fee of up to £5 may apply after a missed payment, with no more than two late fees per order and total fees capped at 25% of the order value. Check your agreement for the applicable grace period and current terms.
Does Clearpay or PayPal Pay in 3 affect your credit score?
Both report to TransUnion, according to MoneySavingExpert. Missed payments can show on your TransUnion report.
- Clearpay: a £6 fee for a missed instalment, plus a further £6 if it remains unpaid seven days later. For orders under £24, fees are capped at £6; for larger orders, the cap is the lower of £24 or 25% of the order value.
- PayPal Pay in 3: no late fees, but PayPal may stop you using it in future.
Fees checked November 2026; always check the provider’s current terms.
BNPL and getting a mortgage
Mortgage lenders look at your whole financial picture. BNPL plans can show up on your credit report and in your bank statements, and lenders may count your repayments as regular commitments when working out what you can afford.
If you’re planning to apply for a mortgage in the next few months:
- Try to clear and avoid new BNPL plans before you apply
- Never miss a payment
- Check what’s on your credit reports with each agency
My guide to bank statements for a mortgage explains what lenders may look for, and my first-time buyer mortgage checklist covers the credit checks to do first.
How to use BNPL safely
- Only use it for things you could afford to pay for today. If you couldn’t, it’s borrowing you can’t afford.
- Keep it to one or two plans at a time.
- Link a debit card, not a credit card, so you’re not borrowing to repay borrowing.
- Add every payment date to your calendar, or turn on app reminders.
- Keep money in your account for each payment date.
- Avoid using it for everyday essentials like food. If you need to, that’s a sign your budget needs attention, and you might find my guide on what to do if you can’t pay your bills useful.
- Treat it as debt: add it to your debt list and budget.
Warning signs BNPL is becoming a problem
- You have several plans running and lose track of payment dates
- You’re using it to pay for food or bills
- You’re using one form of credit to pay off another
- You feel anxious checking your app
If this sounds familiar, list all your plans, stop taking new ones and speak to the provider if you’re struggling. Since July 2026, regulated providers must offer support. Free debt advice is available from National Debtline (0808 808 4000) and StepChange (0800 138 1111).
Buy Now, Pay Later: people also ask
Does Klarna affect your credit score?
It can. Klarna reports to Experian and TransUnion. Paying on time is unlikely to harm your score, but missed payments can be reported and stay on your file for six years. Lots of active plans may also make lenders cautious.
Does Clearpay do a credit check?
BNPL providers usually use soft checks that do not affect your score; visibility can depend on the provider. PayPal says its soft check is visible only to you, while Clearpay says its soft check is visible to other lenders. Since the July 2026 rules, providers must check you can afford the agreement, so checks may be more detailed than before.
Is Buy Now, Pay Later regulated in the UK?
Yes, for most new agreements taken out from 15 July 2026. That means affordability checks, clearer information, support if you struggle and access to the Financial Ombudsman. Older agreements aren’t covered.
Will BNPL stop me getting a mortgage?
Not on its own, but mortgage lenders may see BNPL on your credit report and bank statements and count the repayments when working out affordability. Missed payments would be a bigger concern. Try to clear plans before you apply.
What happens if I miss a Klarna payment?
You get some time to pay, then a late fee may be added, and the missed payment can be reported to credit reference agencies. Contact Klarna straight away if you can’t pay. Regulated providers must offer support if you’re struggling.
Is BNPL better than a credit card?
It depends. BNPL is usually interest-free if you pay on time, but offers less flexibility. A credit card can be interest-free if you clear it in full each month and gives Section 75 protection. Either can become a problem if you borrow more than you can afford.
Summary
- Since 15 July 2026, most new BNPL agreements are FCA-regulated, with affordability checks and Ombudsman access.
- Klarna reports to Experian and TransUnion. Clearpay and PayPal Pay in 3 report to TransUnion.
- On-time payments are unlikely to harm you; missed payments can.
- Before a mortgage, clear plans and avoid new ones.
- Treat BNPL as debt and keep it to one or two plans.
Next step: read how to check your credit score for free, or go back to the debt and credit UK guide.
General information only, not financial advice.
Sources (checked 4 November 2026): Official source for corrected claim · Official source for corrected claim · Official source for corrected claim · FCA: Buy Now Pay Later · MoneySavingExpert: Buy now, pay later guide · MoneyHelper: how to improve your credit score