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 models, named FICO® Score 10 BNPL and FICO® Score 10 T BNPL, are expected to launch in fall 2025. Initially, these scores will be offered to lenders at no additional cost.
The integration of BNPL data into credit scoring aims to provide a more comprehensive assessment of consumers' financial behaviors. With over 90 million Americans projected to use BNPL services this year, many individuals have been making on-time payments without these transactions being reflected in traditional credit scores. By including BNPL data, FICO intends to enhance financial inclusion, particularly for borrowers who may qualify for BNPL loans but lack access to other forms of credit.
However, the adoption of these new scoring models will ultimately depend on financial institutions' decisions to incorporate them into their lending criteria. Consumers are encouraged to familiarize themselves with how BNPL loans operate, compare them to traditional credit cards, and understand their potential impact on credit scores. Additionally, automating savings and investments can help individuals manage their finances more effectively.
As the financial landscape continues to evolve, staying informed about changes in credit scoring and available financial products is crucial. By proactively managing their financial health, consumers can make informed decisions that align with their long-term goals.
In summary, FICO's forthcoming credit scoring models represent a significant step toward integrating modern financial behaviors into traditional credit assessments. This development underscores the importance of adapting financial tools to reflect the diverse ways consumers manage credit in today's economy.
