Klarna does not report to the three major credit bureaus, so using it will not help your credit score
Klarna is a buy now, pay later service that lets you split purchases into smaller payments over weeks or months. Unlike a credit card or a secured card, Klarna does not send payment information to Equifax, Experian, or TransUnion — the bureaus that calculate your credit score. This means on-time Klarna payments do not build your credit history, and missed payments do not damage it either.
If you are considering Klarna because you want to build credit while borrowing, it will not do that job. A secured credit card, by contrast, reports every payment to all three bureaus, so each on-time payment strengthens your score. That difference matters if you are rebuilding after a poor credit history or establishing credit for the first time.
Klarna can still be useful for managing cash flow — you might use it to spread a large purchase across four interest-free payments. But it is a borrowing tool, not a credit-building tool.
Key Takeaways
- Klarna does not report to Equifax, Experian, or TransUnion, so your payment history with Klarna will not appear on your credit report.
- A secured credit card reports to all three bureaus and builds your score with every on-time payment, while Klarna does neither.
- Klarna charges no interest on purchases split into four payments, but charges interest if you extend payments beyond that window.
- If building credit is your goal, a secured card is a more direct path than any buy now, pay later service.
When Klarna might charge you interest
Klarna's most advertised feature is splitting a purchase into four equal payments with no interest. That offer is real, but it is not the only way to use Klarna. If you choose a longer payment plan — say, six months or twelve months — Klarna charges interest, and those rates vary by purchase and by your account history.
Because Klarna does not report to credit bureaus, the company has no credit score to base its decision on. Instead, Klarna uses its own internal scoring system, which looks at your payment history with Klarna itself, your bank account information, and other data it collects. A customer with a strong history of on-time Klarna payments may see lower interest rates than a new user.
The catch: since Klarna does not report to bureaus, building a good history with Klarna does not help you build a credit score that matters to banks, landlords, or other lenders. You are building a history only within Klarna's system.
How a secured card actually builds credit
A secured credit card works differently. You deposit cash as collateral — usually $200 to $2,500 — and the card issuer gives you a credit line equal to that deposit. You use the card like any other credit card, and the issuer reports your balance and payment history to Equifax, Experian, and TransUnion each month.
Every on-time payment adds to your credit history and raises your score. After six to eighteen months of responsible use, many issuers will convert your secured card to a regular unsecured card and return your deposit. At that point, you have both a credit score and a credit history that other lenders recognize.
Klarna cannot do this because it does not participate in the credit reporting system. No matter how long you use Klarna or how reliably you pay, your credit score will not change.
Why Klarna does not report to credit bureaus
Klarna is regulated differently than credit card companies. Credit card issuers are required to report account activity to credit bureaus as part of the Truth in Lending Act and related regulations. Klarna, as a fintech lender, operates under a different set of rules and has chosen not to report to the bureaus.
This is a business decision, not a legal requirement. Klarna could report to the bureaus if it wanted to, but doing so would require building infrastructure and paying reporting fees. The company has decided that its business model — quick approvals based on its own data — works better without bureau reporting.
That choice benefits Klarna (faster approvals, lower costs) but not you if you are trying to build credit. It also means Klarna has less incentive to verify your income or employment the way a credit card issuer does, which is why Klarna approvals are often faster and easier.
What to do if you want to build credit and borrow
If you need to borrow money and build your credit score at the same time, a secured credit card is the direct path. You will have a credit line, a monthly statement, and monthly reporting to all three bureaus. Your payment history will show up on your credit report within 30 to 45 days of your first statement.
You can also use Klarna for purchases if you want — there is no rule against using both. But if your goal is to raise your credit score, the secured card is doing the work, not Klarna. Use the secured card for regular purchases, pay the full balance or a large portion of it each month, and let the reporting do its job.
Some people use both tools for different reasons: a secured card to build credit, and Klarna to manage a specific large purchase without interest. That is a reasonable approach as long as you understand what each tool does and does not do.
The difference between Klarna's approval and a credit card's approval
Klarna approves you in minutes based on your bank account balance, income, and Klarna's own payment history with you. It does not pull your credit report and does not care about your credit score. This is why people with poor credit or no credit history can often get approved for Klarna when they would be turned down for a credit card.
A secured card issuer, by contrast, will pull your credit report and may ask for proof of income. The approval process takes days or weeks. But once approved, every payment you make strengthens your credit profile in a way that matters to every other lender, landlord, and creditor in the country.
Klarna's speed and ease come at a cost: your responsible behavior with Klarna is invisible to the rest of the financial system. A secured card's slower approval process leads to visibility that compounds over time.
Frequently Asked Questions
Can I use Klarna to build credit if I have no credit history?
No. Klarna does not report to credit bureaus, so using it will not create a credit history or a credit score. A secured credit card is designed for people with no credit history and will build one from your first payment onward.
What happens to my Klarna payment history if I miss a payment?
Klarna will charge late fees and may suspend your account, but the missed payment will not appear on your credit report because Klarna does not report to bureaus. However, Klarna may use the missed payment to lower your internal score with them, which could affect your interest rates on future Klarna purchases.
Is Klarna safer than a credit card because it does not affect my credit?
Klarna is not safer — it is just different. You can still owe money you cannot pay back, and Klarna can still send your account to a debt collector if you default. The lack of credit reporting means missed payments do not hurt your score, but they can still hurt your wallet and your relationship with Klarna.
Should I choose Klarna or a secured card?
If you want to build credit, choose a secured card. If you want to split a specific purchase into payments without interest, Klarna can work for that. Many people use both: a secured card as their main credit-building tool, and Klarna occasionally for large purchases.
Does Klarna ever report to credit bureaus?
Not currently. Klarna has not announced plans to report to the three major bureaus. Some buy now, pay later services have started reporting to alternative credit bureaus, but Klarna's standard service does not report anywhere that affects your traditional credit score.