When you use BNPL, a payment option that lets you split purchases into small installments, often with no interest. Also known as Buy Now Pay Later, it's become a default choice for online shoppers who want to avoid credit card debt—but that’s changing fast. Starting in 2025, major BNPL providers like Klarna and Affirm will start reporting your payment history to credit bureaus. That means on-time payments could help your credit score, but missed payments will hurt it—just like a missed credit card bill.
BNPL isn’t just a payment tool. It’s a behavioral shift. People use it because it feels less risky than maxing out a card. You see $50 today, not $300 total. But that ease can lead to overspending. A 2024 study found users of BNPL were 30% more likely to buy things they didn’t plan for, and nearly half didn’t track how many BNPL orders they had open at once. That’s not just a budgeting issue—it’s a hidden debt trap. And now, with credit reporting in play, those habits could stick with you for years.
Related tools like Klarna, a popular BNPL service that partners with major retailers and now reports to Experian and Equifax and Affirm, a lender that checks your credit before approving payments and now reports to all three major bureaus are leading the shift. They’re no longer just offering convenience—they’re becoming part of your financial footprint. Even if you’ve never had a credit card, using BNPL now builds or breaks your credit history.
So what should you do? If you’re already using BNPL, start treating it like a loan. Pay on time. Don’t stack multiple orders. Check your credit report once a year—free sites like AnnualCreditReport.com will show if BNPL activity is being reported. And if you’re thinking about signing up? Ask yourself: Is this something I’d buy with cash? If not, maybe wait.
The posts below dive into exactly how BNPL affects your credit score, what lenders see when they check your file, and how to use these services without shooting yourself in the foot. You’ll find real breakdowns of Klarna’s new reporting rules, how Affirm’s credit checks work, and what happens if you miss a payment. No fluff. Just what you need to know to stay in control.
