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5d ago

FICO Introduces Credit Scores Incorporating Buy Now, Pay Later Data

Lenders will gain insight into consumers’ installment borrowing habits.

Buy Now, Pay Later installment loans are an increasingly popular way for Americans to buy clothes, flights, concerts and even groceries. However, these financing offerings aren't fully reported to credit agencies, lenders and the government data-crunchers.
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Overview

  • FICO announced two new scoring models—FICO Score 10 BNPL and FICO Score 10 T BNPL—on June 23, 2025, to factor buy now, pay later loans into credit assessments.
  • The new scores will reach lenders later this year, though experts warn that integration could proceed slowly due to credit reporting complexities and varied scoring model adoption.
  • By aggregating installment repayment data, the scores aim to give lenders a fuller picture of consumer borrowing behavior for more informed lending decisions.
  • Younger consumers who manage BNPL payments responsibly may benefit by establishing or improving their credit profiles through the new scoring methodology.
  • Concerns persist over overspending and phantom debt among BNPL users, highlighting potential risks as the installment financing sector becomes more transparent.