In response to the growing popularity of Buy Now, Pay Later services, FICO has announced the development of two new credit scoring models designed to incorporate BNPL data. The FICO® Score 10 BNPL and FICO® Score 10 T BNPL are expected to launch in fall 2025, with initial offerings to lenders at no extra cost.
The integration of BNPL data into credit scoring aims to enhance financial inclusion, particularly for borrowers who utilize BNPL services but lack access to traditional forms of credit. With over 90 million Americans projected to use BNPL services this year, the new models seek to provide a more comprehensive assessment of an individual's creditworthiness.
However, the adoption of these new scoring models will ultimately depend on financial institutions' decisions to incorporate them into their lending processes. Consumers are encouraged to understand how BNPL loans work, compare them to credit cards, and be aware of their impact on credit scores.
As BNPL services continue to gain traction, the financial industry is closely monitoring these developments to assess their potential impact on credit scoring and lending practices. The introduction of these models represents a significant shift in how consumer credit is evaluated, reflecting the evolving landscape of personal finance.
Consumers are advised to stay informed about these changes and consider how BNPL services may affect their financial health and credit standing. Engaging with financial advisors or utilizing educational resources can provide valuable insights into managing credit in this new era.
