Using buy now, pay later services could affect a person's credit score, as these are credit products, according to Citizens Advice. The charity warns that failure to make BNPL payments could lead to being referred to debt collectors. Late payment charges on BNPL agreements can increase the amount owed, National Debtline advises.
The Financial Conduct Authority does not currently regulate all buy now, pay later services. New regulations for BNPL services will come into force in July 2026. From July 15, 2026, lenders of Deferred Payment Credit BNPL agreements will need to be authorized by the FCA or be part of its temporary permissions regime, according to the regulator.
Buy Now Pay Later services are credit products, and missing payments on them can affect your credit score! Our advice could help if you're struggling with debt or feeling overwhelmed by your payments.
However, the new FCA protections will not apply to DPC agreements taken out before July 15, 2026. If customers purchase from a business and use the DPC provided by that business, it will not be regulated by the FCA. It remains unclear what specific BNPL services are currently regulated by the FCA and how many people have been affected by credit score issues due to BNPL payments.
The FCA has not detailed how it will enforce the new regulations starting in July 2026.
Buy Now Pay Later can be a useful way of spreading the cost of large purchases, but failure to make your payments will impact your credit score, and you could be referred to debt collectors.
Always read the T&C's, and make sure you know how much you'll have to repay and when!