What happens if you miss a buy now pay later payment

Buy now pay later (BNPL) is a way of spreading payments, interest free, for something you buy over a short period of time¹. You might pay in instalments over three months or more, or agree to clear the balance in one go by a fixed date². The catch is what happens when a payment does not go through.

If you miss a payment, the provider can add a late fee, and that fee can make the purchase cost more than paying upfront⁴. Klarna, for example, adds a £5 late payment fee for payments made more than seven days after the due date, capped at two late payment fees per order⁵. Missed payments can also be shared with credit reference agencies, and falling 90 days or more behind can mean the account is reported as defaulted⁵.

This is not a rare problem. 21% of BNPL users missed or made late payments in the 12 months to November 2023, according to an official impact assessment⁷. The rules changed on 15 July 2026, and providers now have to contact you promptly if you miss a payment, explain the consequences, and offer support if you are struggling⁸.

Late fees can make buy now pay later cost more than paying upfront

BNPL is marketed as interest free, and for most people who pay on time it is. The Financial Ombudsman Service describes it as "a way of spreading payments, interest free, for something you buy over a short period of time"¹. But the interest-free label only holds while you keep to the schedule.

Miss a payment and the picture changes. Providers can charge a penalty fee if your payments are late or missed, and they may pass information about the missed payment to credit reference agencies³. Independent guidance is blunt about the effect: if you miss payments, providers "can add on fees. This means you may end up paying more than you would have if you bought something outright"⁴. Late fees can quickly make BNPL expensive¹¹, and on some products you can also be charged high fees and interest if you fall behind¹².

The size of the fee varies by provider and product. Klarna's short-term product charges £5 for payments more than seven days late, capped at two fees per order, so the most you can pay in late fees on one order is £10⁵. Longer repayment terms, sometimes called store finance or buy now pay later credit, can carry interest as well as fees¹³.

There is a wider point about how these products are sold. StepChange argues that firms should not be able to use the term "buy now pay later" to market credit products that carry interest during the offer period¹⁴. If you are choosing between a short instalment plan and a longer credit agreement, the interest treatment is the thing to check.

How a missed payment shows on your credit file

A missed BNPL payment does not disappear. Missed payments on a BNPL agreement show on your credit score and can make it harder to get credit in the future⁶. Some BNPL purchases appear on your credit report, and missed payments can be recorded and seen by future lenders¹⁵.

The reporting works in stages. If you miss a payment, it is added to your next scheduled payment, and missed payments can be shared with credit reference agencies⁵. If you fall 90 days or more behind, the account may be reported as "defaulted"⁵. A default is a heavier mark than a single late payment and signals to lenders that the debt went seriously wrong.

Once a mark is on your file, it affects more than new borrowing. Missed payments go on your credit file and can make it harder to get credit in future and to remortgage¹⁷. That matters if your fixed mortgage deal is ending and you need to move to a new lender.

Two details catch people out. First, BNPL does not help build your credit score even when used correctly, unlike a well-managed credit card, so there is no positive record to offset a missed payment¹⁸. Second, if a debt is joint, a missed payment is recorded on both parties' credit files even if the other person agreed to repay it¹⁹.

Missed payments can limit the credit you get offered later

The consequence of a missed BNPL payment is not just the fee. Missing or making late payments on a BNPL agreement can limit your options in future, and you might be turned down when you next apply for any kind of credit²². That applies across the market, not just with the BNPL provider.

Lenders look at patterns, not just single events. Missed payments lower your score and can lead to fines, defaults and even legal action²³. Missed payments on other debts follow the same path: they are recorded on your credit file, and after three or four the creditor will soon think about sending a default notice for credit card or buy now pay later debts, and will be considering other recovery steps²⁴.

Mortgage lenders are a particular concern. A pattern of regular BNPL use may be fed into the affordability calculation or lead to delays through further questions²⁵. That does not mean BNPL use rules you out, but it can slow an application down or reduce what a lender is willing to offer.

The effect is not limited to BNPL. Missed payments on a mortgage can make it harder to get credit in future and to remortgage¹⁷, and missed payments on same day loans can lead to extra charges, damage your credit score and make it harder to get credit in future²⁶. The principle is the same across borrowing: a missed payment is a signal that lenders price in.

Is paying late on BNPL worse than missing a credit card payment?

Neither is good, and both leave a mark. The difference is in the size of the immediate charge and in what the account does for you when things go well.

On cost, a BNPL late fee is usually smaller and capped. Klarna's £5 fee, capped at two per order, is a fixed penalty⁵. Credit cards work differently: miss the minimum payment and you face interest on the balance, plus a late payment charge set by the card, and the account can move into persistent debt over time.

On credit scoring, the impact can be larger than people expect. One late payment on a credit card or loan can dent your score by as much as 130 points, according to Experian²⁷. BNPL providers report missed payments too, and the same logic applies: a mark on your file is a mark on your file, whichever product produced it.

The asymmetry is that BNPL gives you nothing back. Unlike a well-managed credit card, BNPL services do not currently help you with your credit score, even when used correctly¹⁸. A credit card used well builds a positive payment history. A BNPL plan used well leaves no positive trace, so a missed payment is the only thing a lender may see.

There is also a protection difference. From 15 July 2026, BNPL shoppers can make Section 75 claims, with the provider jointly liable with the retailer for purchases costing between £100 and £30,000¹⁰. Before that date, BNPL sat outside that protection. If you are weighing up how to pay, the purchase protection comparison sets out how the two routes differ.

What should I do if I know I will miss a BNPL payment?

Contact the provider before the due date, not after. All BNPL providers must give you clear information about your agreement, the payment amount and due date, and must explain what happens if you miss a payment³. That information tells you the fee and the deadline you are working to.

The rules now put duties on the provider too. From 15 July 2026, if you miss a repayment, firms need to contact you to let you know and explain what this means, and lenders need to provide support if you are struggling to make repayments⁹. Under the same rules, if you miss a payment your provider will need to contact you promptly, explain the consequences and give you reasonable notice before taking further action, and offer appropriate support and signpost free debt advice if you show signs of financial difficulty⁸.

If you have missed a payment, the company must offer you support to help you pay it back, for example pausing interest and charges, before taking further action like taking you to court²⁹. That is a right, not a favour, and it applies before enforcement steps.

Practical steps that follow from the rules:

1. Check the agreement for the payment amount, due date and the fee for late payment³.
2. Contact the provider before the due date if you know the payment will fail.
3. Ask what support is available, including pausing interest and charges²⁹.
4. If you are in financial difficulty, ask to be signposted to free debt advice⁸.
5. Keep a record of what was agreed and when.

One timing detail from research on BNPL users: at least one provider required payment before 8pm on the due date to avoid a payment fee³⁰. Check the cut-off time in your own agreement, because a payment made late in the evening may not clear in time.

Where to get help if you cannot keep up with payments

Free, impartial debt advice is available and it does not cost anything. StepChange and National Debtline both provide guidance for people struggling with BNPL and other debts, and the Financial Ombudsman Service can look at complaints about BNPL agreements taken out from 15 July 2026 onwards⁵.

If you are behind on several debts, the order you pay them in matters. BNPL debts are non-priority debts, so essential costs such as your mortgage or rent, gas, electricity and food come first²¹. Within your non-priority debts, contact each lender and ask what support it can offer.

Lenders do respond. Post Office Personal Loans, for example, says: "If you miss a payment or are struggling with your repayments as a whole, contact us as soon as possible. We'll work with you to find a solution"³². AIB (NI) has support pages covering missing a payment, missed payments, and alternative repayment options for mortgages, personal loans, overdrafts and credit cards³³. Barclays has a helpline on 0345 703 4034 for overdrafts and Barclayloan payments already missed³⁴.

If a lender will not help, or you think it has not followed the rules, you can complain. Citizens Advice explains how to check whether a financial service has followed the rules³⁵. For BNPL specifically, you have six months from the date of the final response from your lender to take your complaint to the Financial Ombudsman Service, for most BNPL agreements taken out from 15 July 2026 onwards⁵. The guide to complaining about BNPL covers how that process works.

Where enforcement escalates, the pattern is predictable. If you do not contact your lender or you miss up to three payments, your lender may start legal action against you³⁶. On car finance, the lender may issue a default notice if you keep missing payments, then take further action to collect the debt and recover the car, possibly using a debt collection agency or applying for a county court judgment³⁷. The earlier you make contact, the more options remain open.