News > Welcome news on BNPL regulation – and what it means for credit building in the UK

Welcome news on BNPL regulation – and what it means for credit building in the UK

Wollit Team2 minute read · Updated 19th May 2025

The HM Treasury has just published its response to the consultation on Buy-Now, Pay-Later regulation, confirming these products will be brought into FCA regulation by mid-2026.

This is a positive step for UK consumers that strikes the right balance: protecting the 10 million+ BNPL users while preserving access to valuable products from providers like Klarna.

Key changes include mandatory affordability and creditworthiness checks for all BNPL products. While this adds protection, it also means:

1. Many consumers who currently use BNPL may find themselves declined as lenders implement stricter checks
2. Having a thin credit file will become an even greater barrier to accessing financial products
3. Building a positive credit history is now more important than ever for UK consumers

At Wollit, we've always championed responsible credit building and our straightforward approach is unaffected by these regulatory changes. Our credit builder and rent reporting tools help consumers establish the positive payment history they need to access affordable credit - whether that's a mortgage, car finance, or indeed regulated BNPL products in future.

Consumers checking their credit scores via platforms like ClearScore or comparing financial products on MoneySuperMarket will soon notice the increasing importance of having a strong credit history for accessing even everyday financial services.

As the credit landscape evolves, Wollit remains perfectly positioned to help consumers build essential credit history, allowing us to help ensure no one is left behind as credit access criteria tighten.

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