Klarna Is Hitting Your Credit? Why That’s Unfair—and Dangerous

Let’s talk about something that’s not getting enough attention: how companies like Klarna, Afterpay, and other “Buy Now, Pay Later” (BNPL) services are now starting to report your payment behavior to credit bureaus—and how that shift might hurt people who are just trying to make ends meet.

Sis… we didn’t sign up for that.

What’s Really Going On?

Klarna, along with other BNPL platforms, used to be a way to split up payments without interest and without affecting your credit score. Sounds like a good deal, right?

You want those sneakers, that outfit for the event, or those essentials you can’t quite afford all at once—BNPL gave you a chance to breathe.

But now? Klarna announced that starting in 2024, they’ll begin reporting your on-time and missed payments to TransUnion. That’s right. Your little four-payment plan for that $75 order could now affect your credit score just like a credit card or loan would.

Here’s Why That’s a Problem

1. No One Told Us the Rules Changed

People signed up for BNPL thinking it was an alternative to traditional credit. Something outside the system. Now it’s becoming part of the system, and folks are being blindsided.

A $20 missed payment on a $200 order could now lower your credit score just like a missed credit card payment.

That’s not transparency. That’s a bait-and-switch.

2. The System Was Already Targeting the Vulnerable

Let’s be honest: BNPL platforms are heavily marketed to young people, low-income consumers, and people of color—especially in our communities.

They’re designed to look easy, cute, and harmless. But they’re not.

And now that these companies are reporting to the credit bureaus, the same people who used BNPL to survive inflation are the ones who’ll suffer when they can’t keep up.

That’s not financial empowerment. That’s exploitation.

3. There’s No Financial Education Built In

You want to act like a credit lender? Then where’s the financial literacy component? Where’s the warning before people sign up that this could now hurt their credit?

Most folks using Klarna don’t realize they’re building a credit profile with each transaction. One slip-up, and suddenly your FICO score dips, and now you’re being denied for real loans, cars, or homes.

How is that fair?

4. It’s Not Regulated Like Credit—But Acts Like It

Credit cards and banks have laws, disclosures, interest rate limits, and oversight. Klarna and similar platforms? Not so much.

They want to act like lenders but avoid the accountability that comes with it. They operate in a grey zone. And now, they’re allowed to impact your credit file without giving you the same consumer protections traditional lenders must provide?

Make it make sense.

So What Can You Do?

• Check your credit report regularly. See if Klarna or any BNPL purchases are being reported.

• Don’t assume BNPL is “safe” from credit impact—those days are gone.

• Use only when absolutely necessary, and try to pay on time or early.

• Speak up—contact your elected officials and financial regulators and demand fairness and transparency in this new credit reporting system.

It’s not wrong to want to spread out payments when times are hard. But it is wrong for these companies to flip the script, report to credit bureaus without full warning, and trap people in a cycle they never agreed to.

This is just another way financial systems continue to hurt those already at a disadvantage.

We deserve better. We deserve transparency. And we deserve financial tools that help—not harm—our futures.

What do YOU think? Should Klarna and BNPL services be able to hit your credit score? Drop a comment or share this with someone who needs to know the truth.