Klarna customers are being warned that an upcoming change to the shopping and payments service could impact credit scores of up to 16 million people.
Big retailers, including H&M, ASOS, Pretty Little Thing, Missguided and Debenhams offer customers the option to pay for products using the Klarna service. It means customers can 'buy now and pay later' and have the freedom to pay in 30 days and cover the cost of their shop in instalments.
However, a change to the service means it will start to report the use of buy now pay later (BNPL) products to UK credit reference agencies from June. Klarna will report consumer purchases paid on time, late payments and unpaid purchases for "pay in 30" and "pay in three" orders made on or after June 1 to Experian and TransUnion, Liverpool Echo reports.
