Klarna does not report to the major credit bureaus, so using Klarna will not build your credit score
Klarna is a buy-now-pay-later service that lets you split purchases into smaller payments over time. Unlike a secured credit card, Klarna does not send payment information to Equifax, Experian, or TransUnion — the three major credit bureaus that calculate your credit score. This means on-time Klarna payments will not show up on your credit report and will not help you establish or improve your credit history.
If building credit is your goal, a secured credit card remains a more direct path. Secured cards report every payment to the major bureaus, so consistent on-time payments create a visible payment history. Klarna can be useful for managing cash flow on specific purchases, but it should not be your primary tool for credit building.
Key Takeaways
- Klarna does not report payment activity to Equifax, Experian, or TransUnion, so it will not affect your credit score either way.
- A secured credit card reports all payments to the major bureaus and is designed specifically for building credit history.
- Klarna may perform a soft credit check when you sign up, which does not affect your score, but some lenders may do a hard inquiry that does.
- Missing a Klarna payment can hurt your credit indirectly if Klarna sends the debt to a collection agency, which then reports to the bureaus.
- If you want to build credit while managing payments, a secured card paired with responsible use is more effective than Klarna alone.
How Klarna checks your credit when you sign up
When you create a Klarna account, the company performs a soft credit inquiry to verify your identity and assess risk. A soft inquiry does not affect your credit score and does not appear on your credit report. It is similar to what a landlord or employer might do when screening you.
However, if you increase your Klarna spending limit or explore for a Klarna Card (a physical debit card), Klarna may perform a hard inquiry. A hard inquiry does show up on your credit report and can lower your score by a few points. The impact is temporary — it typically fades within a few months — but it is worth knowing before you request a limit increase.
What happens if you miss a Klarna payment
Missing a Klarna payment will not directly damage your credit score because Klarna does not report to the bureaus. However, the consequences can still be serious. Klarna will charge late fees, and repeated missed payments may result in your account being sent to a collection agency.
Once a debt collector takes over your account, they may report the debt to the credit bureaus. A collection account on your credit report can significantly lower your score and stay on your report for up to seven years. Klarna may also pursue legal action or garnish your wages, depending on your state and the amount owed.
The lesson: even though Klarna does not build credit on-time payments, it can damage your credit through the collection route if you fall behind.
Klarna versus a secured credit card for credit building
A secured credit card is specifically designed to help people build or rebuild credit. You deposit money as collateral, receive a credit limit equal to that deposit, and make purchases like you would with any card. Every payment you make gets reported to all three major bureaus, creating a visible payment history that lenders can see.
Klarna, by contrast, is a payment tool for specific purchases, not a credit-building product. It does not report positive payment history, so it does not help you demonstrate creditworthiness to future lenders. If you are trying to improve your credit score or establish a credit history from scratch, a secured card is the more direct choice.
That said, Klarna and a secured card are not mutually exclusive. You could use both — a secured card for regular credit building and Klarna for specific large purchases where you want to spread payments. Just remember that only the secured card will show up on your credit report.
Other buy-now-pay-later services and credit reporting
Most major buy-now-pay-later services, including Affirm, Afterpay, and PayPal Pay in 4, do not report to the credit bureaus either. A few newer services have begun reporting to alternative credit bureaus or niche lenders, but this is not standard across the industry. If credit building is important to you, do not assume any buy-now-pay-later service will help — check the company's website or contact their customer service to confirm.
Some services may report to alternative credit bureaus like Clarity Services or Equifax's alternative data division, which are used by some lenders but not by most mainstream credit scoring models. Even if a service reports to an alternative bureau, it will not affect your traditional FICO or VantageScore credit score.
How to use Klarna responsibly while building credit elsewhere
If you use Klarna, treat it like any other debt: pay on time and do not spend more than you can afford. Set up automatic payments if Klarna offers that option, so you do not miss a due date by accident. Keep track of your payment schedule — Klarna typically breaks purchases into four payments over six weeks, but terms vary by purchase amount.
At the same time, open a secured credit card and use it for small, regular purchases that you pay off in full each month. This dual approach lets you manage cash flow with Klarna while building a credit history with the secured card. Over time, the secured card will create the payment history that lenders look at, while Klarna remains a convenience tool.
Once your credit score improves, you can graduate from the secured card to an unsecured card and eventually close the secured account. Klarna can stay in your toolkit for specific purchases, but it should not be your primary credit-building strategy.
Frequently Asked Questions
Can Klarna hurt my credit score?
Klarna will not directly lower your score because it does not report to the major bureaus. However, a hard inquiry when you request a limit increase can cause a small, temporary dip. More importantly, if you miss payments and the debt goes to a collection agency, that collection account will appear on your credit report and damage your score significantly.
Does Klarna show up on my credit report at all?
No. Klarna does not appear on your credit report from Equifax, Experian, or TransUnion. Your Klarna account history is private to Klarna and does not become part of your credit file, even if you pay perfectly on time.
Should I use Klarna if I am trying to build credit?
Klarna alone will not build credit. If credit building is your goal, use a secured credit card instead — it reports to all three major bureaus and is designed for this purpose. You can use Klarna for specific purchases, but do not rely on it to improve your credit score.
What is the difference between a soft and hard credit inquiry from Klarna?
A soft inquiry (when you sign up) does not affect your score or appear on your report. A hard inquiry (when you request a higher limit) does appear on your report and can lower your score by a few points temporarily. Both are used to assess your creditworthiness, but only the hard inquiry has a visible impact.
If I pay Klarna on time every month, will that help my credit?
No. On-time Klarna payments do not report to the credit bureaus, so they will not build your credit history or improve your score. Only accounts that report to Equifax, Experian, or TransUnion — like credit cards, loans, and secured cards — contribute to your credit score.