Buy Now Pay Later: What You Should Know About the New Rules
- May 17
- 2 min read
You’ve probably seen options like Klarna or Clearpay at checkout.
Split the cost, no interest, just smaller payments. It can feel like an easy way to manage spending.
But it’s important to remember: Buy Now, Pay Later (BNPL) is still a form of credit. And from 15 July 2026, it will start to be treated more like one.
What’s changing?
Until now, most BNPL products haven’t been regulated in the same way as loans or credit cards.
From July 2026, that changes.
BNPL providers will need to follow the same rules as other lenders, meaning more checks, more transparency, and more support if things go wrong.
What this means for you
For members, this is mostly good news.
If you take out a BNPL plan after 15 July 2026, providers will need to:
Check you can afford it
Even for smaller purchases, lenders will need to look at your income and spending before approving payments
Be clearer at checkout
You’ll see exactly what you’re agreeing to, including payment dates and what happens if you miss one
Support you if you fall behind
This includes repayment options and signposting to free debt advice
Give you somewhere to complain
If something goes wrong, you’ll be able to take it to the Financial Ombudsman
One thing to note: any BNPL agreements taken out before July 2026 won’t be covered by these new rules.
Will anything else change?
You might notice a few differences when using BNPL:
Checkouts could take a little longer while affordability checks are completed
Your BNPL borrowing may appear on your credit file
Lenders will have a clearer picture of what you owe
In short, BNPL will feel more like using a traditional loan.
Is BNPL good or bad?
It depends on how you use it.
Used occasionally, BNPL can help spread the cost of something you’ve already planned for.
But problems can build when it becomes routine.
We often see people using multiple BNPL apps at once, losing track of payments, and ending up with fees and added stress.
How to use BNPL safely
If you do use BNPL, a few simple habits can help:
Treat it like any other credit
Ask yourself if you can afford the payments before you agree
Check the details
Know when payments are due and what happens if you miss one
Set reminders
A quick calendar alert can help you avoid late fees
Consider your options
For larger purchases, it may be worth comparing alternatives like a credit union loan
We offer clear, fixed-rate loans with no hidden fees, and options that help you build savings alongside borrowing.
Final thought
BNPL can be useful, but it’s not “free money”.
From July 2026, it will come with more protection and more visibility, which is a positive step.
The key is to use it in a way that supports your budget, not stretches it.
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