Buy now, pay later giant Klarna has announced that using its products will start to impact people’s credit scores.
In Brief:
Klarna will report the use of its products, as well as missed payments, to UK credit referencing agencies.
Repaying on time could boost credit scores.
Meanwhile, it will also prevent people being able to build up multiple lines of credit.
What does this mean?
Klarna, which currently has 16mn UK users, will be reporting the use of its products to Experian and Trans Union as of 1 June. The real impact for customers will come later this year when scoring mechanisms are updated, says the CRA.
