Does Klarna Affect Credit Score? UK Guide
Klarna can be a handy way to spread a cost, but it’s still a form of credit in many cases. Here’s the simple UK answer: when it’s likely to show on your credit file, what can actually harm your score, and the calm habits that keep you safe.
Quick Answer
Does Klarna affect credit score in the UK?
It can, but it depends on which Klarna product you use, whether a credit check happens, and whether the account activity is reported to credit reference agencies. The part that most often harms your credit file is simple: late or missed payments.
If you treat Klarna like any other credit agreement (keep the number of open plans small, pay on time, and avoid using it when money is tight), it’s often neutral. If it turns into lots of overlapping commitments, it can get messy fast.
Klarna in plain English: BNPL is still credit
Klarna is usually grouped under buy now, pay later (BNPL). It can feel like a checkout feature, but from a lender’s point of view it can behave like credit: you’re taking goods now and committing future income to payments.
Two calm truths help here:
- Small plans stack. Three “easy” payments across different shops can be harder to manage than one bill you can see clearly.
- Credit scores react to stress. The biggest score drops usually come from missed payments, high utilisation, or lots of applications in a short time. (If your score recently moved, our guide Why Has My Credit Score Gone Down? helps you pinpoint the cause.)
Soft checks vs hard checks: what to look for
In the UK, when you apply for credit, a lender can run either a soft search or a hard search on your credit file.
- Soft search: used for identity checks or eligibility checks. It’s not visible to other lenders in the same way and it doesn’t usually affect your score.
- Hard search: typically recorded when you apply for credit. One hard search is usually fine, but several close together can have a small short-term impact and can make you look “credit hungry”.
With Klarna, the type of check can vary by product and by customer. If you’re unsure, assume two things: (1) Klarna will tell you during checkout/apply, and (2) your credit report will show recorded searches.
MoneyHelper’s overview of credit scores and reports is a good UK baseline: credit scores and credit reports.
Will Klarna show on your credit report?
It might. BNPL reporting in the UK has evolved quickly, and not every provider reports every product in the same way. The most practical approach is to focus on what you can verify:
- Check your full credit report (not just the score) and look for any Klarna account line item.
- Check your searches section for any Klarna-related search entries.
- Remember you don’t have one score. Lenders and credit reference agencies don’t all match. Our guide Average Credit Score UK explains why the number varies.
If a Klarna plan is reported, it may behave like other credit accounts: on-time payments can look stable; missed payments can hurt.
What actually hurts your credit score with Klarna (most of the time)
Most people don’t get into trouble because of one Klarna purchase. It’s the pattern. Here are the common ways BNPL can start showing up as “risk” on a credit file.
1) Missed payments (even by accident)
If your payment fails, you may be marked late depending on how the account is structured and reported. Either way, late payments create fees and stress, and stress leads to more missed payments.
2) Lots of open plans at once
Even if each plan is small, multiple commitments reduce your monthly breathing space. Lenders care about affordability, not just the score number.
3) Stacking new credit right before a big application
If you’re planning a mortgage, car finance, or a new card, it’s often smarter to keep your recent credit activity quiet and predictable.
4) Using BNPL to cover basics
If you’re using Klarna for essentials because payday feels far away, that’s a sign to pause. It’s not a character flaw. It’s a signal that the timing or budget needs a tweak.
10-Minute Check
A quick “BNPL safety check” before you tap confirm
- Count active plans. If you already have 2 or 3 running, consider paying one off before starting another.
- Check payment dates. Do any fall just before payday or alongside rent and bills?
- Pick one payment method you trust. If you switch bank accounts often, BNPL plans are easy to forget.
- Ask the honest question: “Would I still buy this if I had to pay it all today?”
- Pause for 24 hours if it’s not urgent. Most impulse buys don’t feel urgent tomorrow.
If you’re worried your spending is being nudged by recurring costs, our Subscriptions guides help you tidy the “small leaks” that eat breathing space.
If you’re applying for a mortgage soon
Mortgage lenders look at your credit file and your affordability. Even if BNPL isn’t the main factor, it can contribute to a picture of lots of monthly commitments.
A steady approach in the 2–3 months before applying:
- Keep payments boring and on time.
- Avoid stacking new credit unless you genuinely need it.
- Reduce “near-miss” moments like overdraft dips. (Related: Does Overdraft Affect Credit Score?)
What to do if a Klarna payment is late
If you’ve missed a payment, don’t panic and don’t ignore it. The goal is to reduce damage and stop it from repeating.
- Pay what you can today and bring the account back up to date.
- Check your email/app notifications for what’s overdue and what’s next.
- Move the payment date (if available) so it’s after payday, not before.
- Open your credit report and look for any late-payment markers so you’re working with facts.
- Reduce new commitments until things feel calm again.
If you ever spot an account or search you don’t recognise, treat it as urgent. Our checklist in Why Has My Credit Score Gone Down? includes quick fraud and error steps.
About 118M8: a simple pause before you spend
BNPL works best when it’s a deliberate choice, not the default. 118M8 helps you pause by showing what a price costs in hours worked, so you can decide quickly if it’s actually worth your time.
- Turn any price into hours (based on your take-home earnings)
- Tap “Sleep on it” for a 24-hour reminder
- Track the wins when you skip a purchase
Keep learning: Blog home · Credit Scores · Subscriptions
Frequently Asked Questions
Does Klarna affect your credit score in the UK?
It can, depending on the product and how it’s used. Some Klarna products may involve a credit check and some activity may be reported to credit reference agencies. The biggest risk to your credit file is late or missed payments.
Is Klarna a hard or soft credit check?
It depends on the product and your situation. Some checks may be soft and some may be hard. Klarna should show you what type of check is being used during the application or checkout flow.
Will Klarna show on my credit report?
It may. Reporting can differ by product type and over time. If you want certainty, check your credit report line items and the searches section.
Can missing a Klarna payment damage your credit score?
Yes. If a BNPL payment becomes overdue and is reported as late, in arrears, or defaults, it can harm your credit file. Even if it isn’t reported, missed payments can lead to fees and debt collection, which can create knock-on problems.
Does using Klarna help build credit?
Sometimes, but it isn’t a reliable ‘credit builder’. If the product is reported and you pay on time, it may contribute positive history. If it isn’t reported, it won’t help. Either way, the priority is to avoid missed payments.
Should I use Klarna before applying for a mortgage?
If a mortgage is soon, keep your credit profile boring: avoid stacking new credit agreements, keep payments on time, and limit new applications. If you use BNPL, do it sparingly and only if you’re confident it won’t create multiple commitments.
Stock images by rupixen, SumUp, dlxmedia.hu, Markus Spiske, and Kelly Sikkema via Unsplash.