Buy Now, Pay Later Loans Set To Affect Credit Scores Under New FICO Models

Buy Now, Pay Later Loans Set To Affect Credit Scores Under New FICO Models

FICO announced it will include buy now, pay later (BNPL) data in its credit scores for the first time through the new FICO Score 10 BNPL and FICO Score 10 T BNPL models.

Julie May, vice president of B2B Scores at FICO, said:

“Buy Now, Pay Later loans are playing an increasingly important role in consumers’ financial lives.”

 

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She added that the updated scores will help lenders “more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products.”

This move comes after Klarna reported $136 million in consumer credit losses in the first quarter of 2025.

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