Payment firm Klarna messed up my credit score, says student

molerat

https://www.bbc.co.uk/news/business-50306563
No, you messed it up yourself :mad:

Willing2Learn

Is it even possible to mess up one's credit score, when a CRA score is meaningless?

[Deleted User]

Multiple media outlets posted this same "story"

Ben8282

The article states …. 'she missed a few payments' …….

So if I miss a few payments and my credit score goes down can I call the BBC and get an article written about my misfortune and my photograph put on their webste?

[Deleted User]

Failing to pay Klarna has no impact on your credit history. They do a soft search but they do not report as a credit account on your credit report. No credit agreement is created and they do not sell on the debt.

DCFC79

What did she expect would happen ?

Maybe she needs to learn from the experience and be more responsible for her actions.

boo_star

[Deleted User] wrote:

Failing to pay Klarna has no impact on your credit history. They do a soft search but they do not report as a credit account on your credit report. No credit agreement is created and they do not sell on the debt.

Are you sure?

Pay later is dependent on a soft credit check, a customer’s previous credit history, and the customer’s age, along with several other factors, including at what time they place their order.

A soft credit check does not affect your credit score/rating and is strictly between you and us; this is not visible to other lenders.

There are no interest fees, surcharges or late payment penalties with Pay later in the UK. However, non-payment will affect your credit score.

https://www.klarna.com/uk/csr/openness/

I know your score in meaningless but it won't be affected if nothing is being reported, so presumably they ARE reporting something.

Also

https://www.clearscore.com/loans/buy-now-pay-later-credit

It can affect your credit score
When you choose to pay later with Klarna, they’ll run a soft search against your credit report. This won’t affect your credit score and will only be visible to you. But missing or making a late payment could damage your credit score.

A missed payment will show up on your credit report and will be visible to lenders if you apply for credit. Missed payments stay on your report for 6 years, and are a sign that you could be struggling financially. So not only could your credit score take a hit, but credit providers might be more hesitant to lend to you in the future.

Seems like they will report it.

Ben8282

Other than perhaps they may believe that the possibility of fraud increases if the order is placed at an odd time of the day, I can't really see what the time of placing the order has got to do with anything.
I used Klarma once. It was for a relatively small value order. I had intended to pay immediately by credit card but was not given that option by the website which used Klarma to process their transactions. When the goods arrived and I received the invoice from Klarma I just paid it there and then by credit card. I am not aware of any soft search being carried out but only regularly check Experian so if they used a different CRA wouldn't know about it.

SnowTiger

!!! wrote: »

Multiple media outlets posted this same "story"

YouTube video demonstrating that local news programmes in the US buy in stories from a third party and regurgitate them word for word:

https://www.youtube.com/watch?v=ksb3KD6DfSI.

Journalism seems to be mostly about rewording stories written by others.

boo_star

SnowTiger wrote: »

YouTube video demonstrating that local news programmes in the US buy in stories from a third party and regurgitate them word for word:

https://www.youtube.com/watch?v=ksb3KD6DfSI.

Journalism seems to be mostly about rewording stories written by others.

It's not that they buy these stories, it's that the Sinclair Broadcast Group owns an incredibly large number of local news channels and give them all the same stories.

https://www.youtube.com/watch?v=GvtNyOzGogc

dr_adidas01

[Deleted User] wrote:

Failing to pay Klarna has no impact on your credit history. They do a soft search but they do not report as a credit account on your credit report. No credit agreement is created and they do not sell on the debt.

Actually they do report your account conduct to the CRA's as ive used Klarna on a few occasions and it shows on my reports as a mail order account with Klarna Ab.