Overview

• FICO launched two new scoring models — FICO Score 10 BNPL and FICO Score 10 T BNPL — that incorporate BNPL installment data and are slated to be available to lenders later this year.
• Lenders using these scores will see aggregated repayment history from BNPL services for a more comprehensive credit assessment.
• FICO’s research indicates that borrowers with limited or blemished credit histories can see score improvements when BNPL data are included.
• Industry experts predict adoption may be gradual due to credit reporting complexities and the prevalence of older FICO models among lenders.
• BNPL providers historically have not reported payment activity consistently, making FICO’s novel data-aggregation approach a potentially pivotal shift.