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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.

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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 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.