Credit Building > Does Klarna Improve Your Credit Score? Here's The Truth

Does Klarna Improve Your Credit Score? Here's The Truth

Wollit Team1 minute read · Updated 19th February 2025

As buy now, pay later (BNPL) services grow in popularity, many users wonder whether Klarna can help improve their credit score. When comparing Klarna to traditional credit options, the answer isn't straightforward - it depends on how you use the service and which payment option you choose.

How Klarna Affects Your Credit

Klarna's impact on your credit score varies based on your chosen payment method:

Pay in 30 Days or Pay in 3: These short-term options typically don't affect your credit score directly. Klarna performs only a soft credit check, which doesn't leave a mark on your credit file. However, they do share some payment information with credit reference agencies, meaning lenders can see your Klarna activity.

Financing Options: When you choose Klarna's longer-term financing (6-36 months), they perform a hard credit check that can temporarily lower your score. Making payments on time with these plans can help your credit score, but missed payments will harm it.

Understanding the Risks

While Klarna offers convenient payment options, it's important to understand potential drawbacks:

Easy access to credit might encourage overspending
Missing payments can damage your credit score
Multiple BNPL arrangements can make budgeting difficult
Frequent use might affect future credit applications

Using Klarna Responsibly

To protect your credit score while using Klarna: Keep track of payment dates and ensure sufficient funds for automatic payments. Only make purchases you can comfortably afford to repay. Consider whether you really need the item before using BNPL services.

Building Credit More Effectively

If your main goal is improving your credit score, Klarna might not be the best tool. While some Klarna products can help build credit when used responsibly, dedicated credit-building services often provide a more direct path to credit improvement.

Wollit's Credit Builder offers a structured approach to building your credit score through regular, manageable payments that are reported to all major credit reference agencies. Unlike BNPL services, which primarily focus on shopping convenience, Wollit is designed specifically to help improve your credit profile.

Making an Informed Choice

When deciding whether to use Klarna, consider your financial goals: If you need flexible payments for shopping, Klarna can be useful - just manage it carefully. However, if building credit is your priority, consider using a dedicated credit-building service that consistently reports positive payment behavior to credit reference agencies.

Remember that building good credit takes time and consistency. Choose financial tools that align with your goals and help you maintain responsible credit behavior.