Archive · 30 Jun 2025
Buy Now, Pay Later Loans Set to Affect Your Credit Scores
Currently, using 'buy now, pay later' plans usually doesn't affect your credit score.
But soon, that will change!
The company that creates FICO scores is adding BNPL information to their system.
This means if you pay your BNPL loans on time, your score could go up!
If you are late on payments, your score might go down.
This change could also help people with little or bad credit build better credit.
The new system will be available soon, but it will take time to see changes in your credit report.
Buy now, pay later (BNPL) loans are changing, and will be included in FICO credit scores.
FICO will start including BNPL payment history in credit-scoring models, according to The New York Times.
Timely BNPL payments are critical; missing payments could negatively impact credit scores.
BNPL inclusion may give people with limited or poor credit the opportunity to build credit.
The new FICO scores that include BNPL data will be available in the fall, but changes will be gradual.
- Who
- Fair Isaac Corp. (FICO) will include BNPL data; Experian, Equifax, and TransUnion will determine when data is available to consumers.
- What
- FICO credit scoring models will incorporate buy now, pay later (BNPL) payment history.
- When
- The new FICO scores will be available in the fall, with gradual changes expected.
- Where
- Not explicitly stated.
- Why
- To provide a more complete picture of a person's debt and ability to repay.
Potential Risks
Potential Benefits
Credit Building
Potential Risks
BNPL may lead to overspending.
Potential Benefits
BNPL provides an opportunity to build credit for those with blemished or no credit.
- BNPL impact on credit scores
- Changing from no impact to being included in FICO scores.
- FICO Score 10 BNPL rollout
- Available in the fall
- BNPL impact on credit
- Can improve or negatively impact credit, depending on payment behavior
- Key to avoiding negative impacts
- Making BNPL payments on time