It is estimated that over half of UK adults have used Buy Now, Pay Later (BNPL) at least once. From 15 July 2026, new rules will make using BNPL services safer for UK consumers.

If you've ever split the cost of a purchase into smaller payments at checkout, you've probably used BNPL. While it can be a convenient way to spread costs, it's still a form of borrowing.

Under the new rules:

• Lenders must check you can afford the repayments before offering BNPL.

• Terms and conditions must be clearer, so you'll better understand what you're signing up for.

• You'll have more protection if something goes wrong, including the right to complain to the Financial Ombudsman Service.

• Companies must provide more support if you're struggling to make repayments.

Does your credit score matter?

Yes is the short answer.  Although every lender makes its own lending decisions, your credit history plays an important role when you apply for credit. Using Buy Now, Pay Later responsibly and making payments on time can help you build good financial habits, while missed payments could affect future borrowing.

A healthy credit history may be considered when you apply for:

• Credit cards

• Loans

• Mortgages

• Mobile phone contracts

• Car finance

• Some Buy Now, Pay Later products

Most landlords and letting agents carry out credit checks during the referencing process, so maintaining a good credit history could help when you're looking for your next home. 

If you're looking to buy your own home

Mortgage lenders will assess a range of factors, including your income, outgoings and credit history when deciding whether to lend to you. Making repayments on time, keeping borrowing under control and using credit responsibly all help demonstrate that you're a reliable borrower and could improve your chances of securing a mortgage when the time comes.

Top tips for using BNPL wisely

• Only buy what you can comfortably afford to repay.

• Always make your payments on time.

• Read the agreement carefully before you commit.

• Avoid taking out multiple BNPL agreements at the same time unless you're confident you can manage them.

Remember, CreditLadder can help you improve your credit score.

CreditLadder can improve your credit position by reporting your rent payments. CreditLadder is the first way to improve your credit score and position across all three of the main Credit Reference Agencies in the UK, namely Experian, Equifax and TransUnion. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money. CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the content provided in this article is for information purposes only and should not be considered as advice.