12/08/2026
Ever wondered if using Klarna or another Buy Now, Pay Later service could affect your mortgage application?
It is more relevant than most people realise, so here is what you need to know.
Since 2022, Klarna has been sharing payment data with the major credit reference agencies (Experian, Equifax and TransUnion).
From April 2026, BNPL products came under FCA regulation, which means active plans now show up on your credit file as open credit accounts, not just a footnote.
That does not mean using Klarna will automatically hurt your chances. It is really about the details:
- Paying on time has little to no negative impact
- Missing a payment can knock your score noticeably, and stays on your file for six years
- Several active BNPL plans at once can make your finances look more stretched to a lender, even if you are managing them fine
- Longer term financing products can trigger a hard credit check, which is visible to other lenders
The main thing to be aware of is how it looks to a mortgage lender doing an affordability assessment, not just your credit score. A file with multiple open BNPL agreements can raise questions, even without any missed payments.
If you are planning to apply for a mortgage in the next six to twelve months, it is worth taking a look at your BNPL usage and tidying things up where you can.
Every situation is different though, so if you would like to know how your own credit profile might be viewed by lenders, get in touch and we will talk it through with you.
Call Lee 07811 210404
