The company says its UK customers will soon be able to build a positive credit history by using Klarna’s BNPL products
Klarna will report BNPL data to UK credit reference agencies. Source: facebook.com
Klarna will begin reporting the BNPL data the UK credit reference agencies to protect customers, provide the industry with greater visibility of BNPL use, and give UK consumers one less reason to use high-cost credit cards.
Klarna’s BNPL products in the UK are interest- and fee-free, and have inbuilt controls to prevent the accumulation of debt, making them a fairer alternative to traditional credit.
Klarna will report UK consumer purchases paid on time, late payments and unpaid purchases for Pay in 30 and Pay in 3 orders made on or after 1 June, 2022 to both Experian and TransUnion.
This will give the financial industry greater visibility on UK shoppers’ use of Klarna’s BNPL products, help to improve affordability assessments, and means Klarna consumers who make payments on time can build a positive credit history, showing lenders they use credit responsibly.
Whilst reporting on the use of BNPL products will be reflected in UK consumer credit files from June 2022, they will not initially impact UK consumer credit scores as this requires further updates to the scoring mechanisms used by the CRAs.
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