Credit Score Basics > Does Klarna Check Credit? Your Complete Guide to Klarna Credit Checks in the UK

Does Klarna Check Credit? Your Complete Guide to Klarna Credit Checks in the UK

Wollit Team2 minute read · Updated 18th February 2025

If you're considering using Klarna for online shopping, you might wonder about their credit check process. Does Klarna check credit? And if they do, is it going to impact my credit score? This guide explains exactly how Klarna handles credit checks in the UK and what it means for your credit score.

Does Klarna Check Credit in the UK?

Klarna uses different types of credit checks depending on which payment option you choose:

• Pay in 30 Days & Pay in 3: Klarna performs a soft credit check only
• Financing (6-36 months): Requires a hard credit check
• Pay Now: No credit check needed

A soft credit check means Klarna reviews your credit information, but this check isn't visible to other lenders and won't affect your credit score. However, for longer-term financing options, Klarna will conduct a hard credit check, which other lenders can see and may temporarily impact your credit score.

Does Klarna Report to Credit Reference Agencies?

Since June 2022, Klarna reports certain borrowing information to UK credit reference agencies:

• Reports to Experian and TransUnion
• Includes Buy Now, Pay Later (BNPL) transactions
• Records both positive and negative payment history

This means your Klarna payment behaviour can now affect your credit score, whether you make payments on time or miss them.

How Can Klarna Affect Your Credit Score?

Your credit score might be impacted in several ways when using Klarna:

Positive Effects:

• On-time payments can demonstrate responsible borrowing
• Regular repayments may help build your credit history
• Successfully managing BNPL agreements shows creditworthiness

Negative Effects:

• Missed payments are reported and can harm your score
• Multiple applications for financing options may leave hard searches
• Defaults stay on your credit file for six years

What Credit Score Do You Need for Klarna?

Klarna doesn't publish a minimum credit score requirement. Instead, they consider various factors:

• Your UK address history
• Your payment history with Klarna (if any)
• Information from credit reference agencies
• Your shopping behaviour and purchase amount

Even if you have a lower credit score, you might still be approved for Pay in 30 Days or Pay in 3, as these use soft checks. However, financing options with hard credit checks typically require a stronger credit profile.

Managing Your Klarna Account Responsibly

To protect your credit score while using Klarna:

1. Only use BNPL for planned purchases you can afford
2. Set up payment reminders or automatic payments
3. Keep track of multiple BNPL agreements
4. Contact Klarna immediately if you're struggling to pay
5. Regularly check your credit report for accuracy

Important Considerations Before Using Klarna

Before choosing Klarna as a payment option, consider:

• Payment Schedule: Ensure you can meet the payment dates
• Total Borrowing: Track your combined BNPL commitments
• Credit Impact: Remember that payment history is now reported
• Alternative Options: Consider if a traditional payment method might be better

Final Thoughts

While Klarna offers convenient payment options, it's important to understand how their credit checks and reporting might affect your financial profile. Used responsibly, Klarna can be a helpful tool for managing purchases, but missed payments can now have longer-lasting consequences on your credit file.

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