Buy now, pay later (BNPL) rules are changing - and it should give shoppers more protection. We explain exactly what’s happening and how it affects you.
Key takeaways:
- New BNPL rules from 15 July 2026 will give shoppers greater protection, including affordability checks, clearer information and access to the Financial Ombudsman if something goes wrong.
- The changes only apply to new BNPL agreements taken out from 15 July 2026, and shoppers who miss repayments will be offered more support if they're struggling to pay.
- BNPL can be a useful way to spread the cost of purchases, but missed repayments could affect your credit score, so only use it if you're confident you can keep up with the payments.
What is BNPL?
BNPL, such as Klarna or Clearpay, is a form of credit which is usually repayable in 12 or fewer instalments over 12 months or less.
When it’s used correctly it can be useful as a money management tool. You can spread out the cost of buying items and you won’t pay interest.
Millions of people use BNPL, but they haven’t had the same protection as those using a credit or debit card. However, new rules being introduced from July 15 2026 means shoppers will have more protection.
New BNPL rules - what’s changing?
From July, lenders will need to do affordability checks to make sure you can afford to repay before using BNPL.
They must also provide more information on what taking out an agreement means. For example, the amount you’ll borrow, when you need to make repayments and how much, as well as any late fees and rights and protections.
If you miss a repayment lenders will need to contact you to let you know what this means. And, if you’re struggling to repay, they must give you support, such as setting up an affordable repayment plan.
The new rules only apply to BNPL agreements taken out after July 15, when the new legislation kicks in.
What does this mean for shoppers?
The biggest benefit is that you get more protection when you make a purchase through BNPL.
For example, you’ll be able to take a complaint to the Financial Ombudsman if something goes wrong. And, there’ll be stronger refund protections, meaning you’re more likely to get your money back from the lender.
This is because Section 75 of the Consumer Credit Act, which covers payments over £100 and under £10,000, will apply to BNPL payments. This gives you the same protection as using a credit card.
Will using BNPL affect my credit score?
Big BNPL firms like Klarna and Clearpay already run soft credit checks when you apply for some of their products, but this doesn’t affect your credit score.
But they can report missed payments to credit reference firms which could affect your credit score.
BNPL is a game changer for many shoppers, it allows customers to spread out the cost without paying any interest - but you must keep up with repayments or you could get hit with a late fee or a dent in your credit score.
If you’re weighing up whether to use BNPL, here’s what to keep in mind:
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Before using BNPL, consider whether you can wait to buy the items outright and save up the cash instead.
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If you go ahead and use BNPL, make sure the repayments are within budget and you’re able to make them on time.
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Do your research into any late payment fees or how different products work, so you’re not caught out.
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Consider whether using a 0% credit card (especially one which pays a reward) is an option for you.
If you’re unsure about your credit card eligibility, you can compare them without affecting your credit score using our tool. However, you must pay off the balance in full each month or before the end of the interest-free period to avoid paying higher interest.
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