In a significant update to credit scoring coming this fall, FICO will now include Buy Now, Pay Later (BNPL) data in its credit scores.
On Monday, June 23, 2025, FICO announced the launch of FICO Score 10 BNPL and FICO Score 10 T BNPL — the first scores from a leading provider to incorporate BNPL data.
BNPL is an interest-free loan that lets consumers split their purchases into smaller payments, AFROTECH™ previously reported. While short-term financing can benefit those with credit cards or who are managing debt, it can also cause harm if late payments occur; lenders can charge high fees, posing a risk for individuals with multiple loans.
“Buy Now, Pay Later loans are playing an increasingly important role in consumers’ financial lives,” said Julie May, FICO’s vice president and general manager of B2B Scores. “By expanding our FICO Score 10 Suite with new models designed to incorporate BNPL data, we’re enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products.”
FICO’s new models aim to enhance financial inclusion by integrating BNPL data with traditional credit reports, per its news release. They provide lenders with deeper insights into consumer repayment behavior and a more comprehensive view of credit readiness.
“This innovation also supports our mission to expand financial inclusion by helping more consumers gain access to credit,” May added.
According to a recent LendingTree analysis, 23% of BNPL users report having three or more active BNPL loans simultaneously, primarily among high-income individuals.
To address this, FICO developed a method to aggregate various BNPL loans when calculating key score variables, the software leader noted.
In creating the new scores, FICO collaborated with major U.S. lenders, who widely agreed that including BNPL data is essential for more accurate lending decisions and responsible credit expansion.
LendingTree also found that 25% of Americans — up from 14% in 2024 — use BNPL loans from companies like Klarna and Affirm to buy groceries, AFROTECH™ noted.
Per LendingTree, 33% of people view BNPL services as a “bridge” to their next paycheck, an increase from 30% last year.
During the study, 62% of BNPL users incorrectly believed that on-time payments improved their credit scores, while only 13% correctly understood they had no impact — a reality that is about to change.
“Our clients tell us that FICO’s initiative to include BNPL data in credit scoring is a progressive step that acknowledges the evolving landscape of consumer financing,” May said. “By capturing a broader view of consumer credit behavior, lenders believe they can make more informed decisions, ultimately benefiting both the industry and consumers.”