Financial services company FICO introduces credit scores that incorporate Buy Now Pay Later (BNPL) data
In the ever-evolving world of finance, FICO, a leading player in the scoring function market, has announced the launch of two new credit scoring models – FICO Score 10 BNPL and FICO Score 10 T BNPL – in 2025. These models aim to incorporate buy now, pay later (BNPL) data into credit scores, providing a more comprehensive view of a borrower’s creditworthiness [1].
The integration of BNPL data is a significant step, as it addresses a long-standing issue where BNPL loans were often overlooked in credit scoring, leaving uncertainties about borrowers’ true liabilities [2]. With the increasing popularity of BNPL services, over 90 million Americans are now using these services as of 2025 [3].
According to FICO, the inclusion of BNPL data causes approximately a 10-point credit score impact for over 85% of those with Affirm BNPL loans, indicating measurable effects, though not necessarily widespread drastic score changes [1]. It's essential to note that BNPL delinquency rates tend to be low, sometimes better than credit cards, suggesting that including BNPL data could reflect positive payment behavior as well as risks [1].
Experts warn that while BNPL reporting can help build credit with positive history, missed BNPL payments could cause significant credit damage under the new scoring models, raising concerns about a potential credit risk "catastrophe" if consumers are not careful or educated [2].
For lenders, the integration of BNPL data offers several advantages. It allows for a more complete picture of a borrower’s creditworthiness by accounting for BNPL loans, which have become widely used. This means lenders can better assess risk since BNPL loans now contribute to credit risk profiles, reflecting payment behavior and indebtedness more accurately [2][3].
Lenders such as Affirm have partnered with FICO on the new scoring models, making Affirm the only major BNPL provider to begin reporting its loan data [3]. FICO has also consulted with some of the largest lenders in the U.S. about integrating BNPL data into credit scoring [2].
It's important to note that these new FICO scores will be available at no additional cost and can be used alongside existing versions of the FICO Score [3]. Brian Riley, Director of Credit at Javelin Strategy & Research, stated that FICO Scores continue to be the top predictor in credit quality [3].
In conclusion, FICO Score 10 BNPL and 10 T BNPL are designed to make BNPL borrowing behavior a factor in credit evaluation. This is significant for lenders because it closes a gap in credit data, enabling more accurate assessment of borrower risk. However, it also means consumers need to manage BNPL loans carefully to protect their credit scores. As with any financial decision, education and responsible use are key.
- As lenders partner with FICO to incorporate BNPL data, they can now better assess the creditworthiness of borrowers, due to the inclusion of BNPL loans in credit risk profiles, which were historically overlooked.
- The integration of BNPL data into credit scores not only provides lenders with a more complete picture of borrowers' financial behavior but also poses potential risks for consumers, as missed BNPL payments could significantly impact credit scores under the new FICO scoring models.
%20data){kind=link}