FICO Adds BNPL Data to Credit Scores

FICO has announced new credit scoring models, FICO Score 10 BNPL and FICO Score 10 T BNPL, which will for the first time incorporate Buy Now, Pay Later (BNPL) loan data into credit scores. Aimed at giving lenders a fuller picture of consumer repayment behavior, these models respond to the growing use of BNPL, particularly among younger and limited-credit borrowers. The integration may help responsible BNPL users build credit, but studies also show many users struggle with repayment or use BNPL for basic expenses like groceries. Rising consumer debt and increasing credit losses at BNPL providers such as Klarna highlight the risks associated with these products. FICO developed the new models in consultation with major lenders, and they are scheduled for release in Fall 2025, initially offered alongside existing FICO scores at no extra cost. The initiative reflects both the benefits and potential pitfalls of BNPL in today's economy.