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FICO to Embed Buy-Now-Pay-Later Data in Credit Scores Later This Year

Lenders will gain a fuller picture of consumer installment loan behavior by including BNPL repayments alongside traditional debt metrics.

Overview

  • FICO will launch FICO Score 10 BNPL and FICO Score 10 T BNPL later in 2025, marking the first major inclusion of buy-now-pay-later data in its scoring models.
  • Affirm and Klarna have begun reporting BNPL transactions and late payments to Experian and TransUnion, feeding the new FICO models with real-time installment histories.
  • Analysts say responsible BNPL use could lift credit scores for younger consumers with sparse credit records; missed payments will carry a new penalty.
  • U.S. BNPL balances are projected to climb from $94 billion in 2024 to $108 billion by the end of 2025, driven by millennials and Gen Z using installment plans for essentials and discretionary buys.
  • By closing the “phantom debt” gap, the scores aim to improve lender decision-making and support emerging regulatory efforts to oversee the BNPL sector.