Boost Your Credit Score Without Credit Checks (UK) – Klarna

Klarna, the popular “Buy Now, Pay Later” platform, can potentially help build your credit without conducting traditional credit checks. Starting June 1, 2022, Buy Now Pay Later transactions made through Klarna in the UK will be shared with credit reference agencies, Experian and TransUnion. This includes purchases made using Klarna’s convenient Pay in 30, Pay in 3, and in-app shopping options on or after June 1, which will be reflected in your Experian and TransUnion credit reports. This is excellent news for consumers looking to improve their credit scores without relying on high-interest credit cards. Boost your credit with Klarna in the following ways;

1. On-Time Payments:

   Klarna allows users to make purchases and pay for them in instalments, usually over several weeks. By consistently making on-time payments, you demonstrate responsible financial behaviour. Timely payments are one of the most significant factors in building a positive credit history.

2. Improved Credit Mix:

   A diverse credit mix can positively impact your credit score. Klarna’s “Buy Now, Pay Later” service provides an additional credit type to your portfolio. Having both revolving credit (credit cards) and instalment credit (like Klarna’s payment plans) can be beneficial.

3. Debt Management:

   Klarna helps you manage your debt in a structured way with scheduled payments. This can help you avoid missing payments, which can negatively impact your credit score.

4. Credit Utilization:

   While Klarna doesn’t issue credit cards, it can indirectly affect your credit utilization ratio. If you use Klarna to make purchases and free up your available credit on credit cards for emergencies or other uses, you may maintain a lower credit utilization rate, which is another factor that affects your credit score positively.

5. Preventing Late Payments:

   Klarna’s features can help you avoid late payment fees and negative marks on your credit report, which can be a significant benefit for individuals who struggle with remembering payment due dates.

Heinrich Busumuru (ShaeSuS)

Heinrich Busumuru is a seasoned contributor to Nfinithub.com, where they provide their specialized knowledge on a wide range of subjects, including finance, technology, gaming, travel, and more. Their enthusiasm for learning and sharing insights is evident in each of their contributions. Heinrich possesses extensive expertise and experience in the technology industry, with a particular focus on IT and electrical engineering.