Does extending due date on Klarna affect Credit Score

It might be tough to figure out which actions really affect your credit score and which do not. Knowing what affects your credit score positively and negatively might be even more of a challenge.

But don’t worry; we’ll be here to help you every step of the way and explain all you need to know about credit scores.

Buy now, pay later offerings can be found on the majority of online retail websites, with Klarna being one of the most well-known. Their offers may seem enticing, but they may not be good for your credit.

So, without further ado, let’s find out whether Klarna impacts your credit score if you extend the due date or if you use Klarna in general.

Does extending due date on Klarna affect credit score?

Short Answer: Extending your Klarna payment date won’t have a negative impact on your credit score when you require extra time to pay.

Does extending due date on Klarna affect credit score?
Image Source: Klarna

Klarna’s “Pay later” option provides two different payment schedules, both of which are interest-free: “Pay 30 days later” and “Instalments” (formerly “Pay in 3”). In the United Kingdom, Klarna is exempt from some restrictions since its two most popular products do not need users to enter into a controlled credit arrangement.

By opting into Klarna’s “Pay 30 days later” or “Instalments” payment plans, customers are subject to a light credit check. There will be no impact on the client’s credit score, and the information will not be shared with other lenders via credit reporting agencies.

Does Klarna affect credit score?

Both the application process and ongoing payments via Klarna might have an impact on your credit rating.

For now, let’s focus on how this could change things for you throughout the application process. Klarna would only do a soft check of your credit if you want to utilize their service only as a buy-now-pay-later option (such that you will pay back in 30 days or in 3 installments).

This will prevent the search from appearing on your credit report and will also prevent other lenders from seeing it. When you select the “Financing” payment option, however, Klarna will do a thorough credit check on you. This option is only available for 6-36 month payment plans. Your credit score may be impacted as a result of this information appearing on your credit report.

Klarna has only lately altered its policy with regard to how repayments are handled. Starting on June 1st, 2022, all payments made via financing plans and “buy now, pay later” options will be notified to the three main credit bureaus. This implies they might have an impact on your credit rating as well.

However, this isn’t always a negative thing, since Klarna has been shown to have a beneficial effect on credit scores so long as accounts are kept current and payments are made on time. Having a solid budget in place and knowing that you can comfortably make the required payments is essential.

Does Klarna affect your credit score if you don’t pay?

Yes. With effect from June 1, 2022, Klarna will begin sharing information about your purchases and debts with Experian and TransUnion, two main UK credit agencies. This is in addition to reporting consumers to credit agencies if they skip repayments or utilize financing.

Klarna has announced that it would provide data pertaining to its “Pay in 30 days” and “Pay in 3” products, including the percentage of customers who made on-time, late, or unpaid transactions.

As with the usage of a credit card, the impact of using Klarna on your credit score may vary based on how well you handle your repayments and borrowing.

Use of Klarna may have a favorable impact on your credit score if you use it responsibly, such as by borrowing a little amount and paying it back on time. This is because you will be able to demonstrate to prospective lenders that you have a track record of consistently returning the money that you owe in a timely manner.

On the other hand, Klarna has the right to report you to credit reference agencies if you are late with your repayments, which may have a negative impact on your credit score.

Applying for financing via Klarna and/or taking advantage of a payment holiday might have a negative impact on your credit score. New credit card applications and mortgage applications may be affected by these factors.

To what extent utilizing Klarna will affect your credit score is unknown because of the novelty of the system through which Klarna will disclose your debt and repayment information to credit bureaus. Klarna plans to collaborate with the bureaus “to guarantee that any future influence on credit scores is fair and appropriate,” as the company put it.


1. Does Klarna show on your credit file?

Credit reference agencies may see Klarna on your report if you do not make repayments or if you choose the “Financing” option, both of which require Klarna to submit information about you to these agencies.

Start making on-time Klarna repayments beginning 1 June 2022, and you’ll start seeing Klarna on your credit record. Your credit score may increase as a result of this action. All of the data in your credit report goes into the final tally that represents your credit score.

2. Does using Klarna help you establish credit?

Starting on June 1st, 2022, if you use Klarna’s “Pay in 3,” “Pay in 30,” or “One-time card” payment options and consistently submit repayments in full and on time, you may be able to develop credit.


There are other methods available to you if increasing your credit score is your objective. It is important for customers to realize that using Klarna does not cost them anything since the service assists shops in selling more inventory.

If you really must use Klarna, you should aim to limit the total amount of money spent using it to the absolute minimum. You should consistently pay your bills on time and establish a routine to evaluate whether or not you really need the things you’re planning to acquire.