Buy Now, Pay Later (BNPL) has become a major force in consumer finance over the past few years, but how this type of borrowing affects long-term financial health has remained something of a mysteryāuntil now.
This fall, FICO is set to unveil the first credit scores from a major scoring provider that incorporate BNPL data. The new modelsāFICO Score 10 BNPL and FICO Score 10 T BNPLāare designed to give lenders deeper insights into consumersā BNPL repayment habits, helping to paint a fuller picture of creditworthiness.
āThese scores represent a significant advancement in credit scoring,ā FICO stated, highlighting that BNPL loans are an increasingly important part of the U.S. credit ecosystem.
Julie May, Vice President and General Manager of B2B Scores at FICO, added that these new models are especially valuable for consumers whose first exposure to credit is through BNPL products. āBy incorporating BNPL data, weāre enabling lenders to more accurately evaluate credit readiness,ā she said. āThis innovation also supports broader financial inclusion, helping more consumers gain access to credit.āĀ
Despite BNPLās popularity, data reporting in the industry remains inconsistent. Some companies share only limited information with credit bureaus. For example, Klarna reports payment activity on longer-term loans to TransUnion but excludes its widely used “Pay in 4” option. Affirm, another major BNPL provider, now reports all pay-over-time transactions to both Experian and TransUnion, after previously reporting selectively.Ā
Still, bringing BNPL into mainstream credit scoring may not happen overnight. Ted Rossman, Chief Credit Analyst at Bankrate, told CNN that adoption could take longer than FICO anticipates. āCredit scoring has a long sales cycle,ā he said. āLenders can be slow to adopt new technologies and processes.āĀ
Meanwhile, the debate over the impact of BNPL on consumers continues to evolve. In June 2025, a new working paper from the Consumer Financial Protection Bureau (CFPB) suggested that BNPL services might not be as risky as once believed. Based on data from the six largest BNPL providers, the study found little evidence that BNPL use leads to financial harm. Most users, the study found, repaid their loans in full and didnāt significantly increase other types of debt.Ā
This marks a shift from a previous CFPB report released in January 2025, which warned of potential issues like loan-stacking and over-borrowing. That report noted that 63% of BNPL users held other types of loans, and one-third borrowed from multiple BNPL providers at the same time.Ā
As the credit industry begins to adapt to the growing influence of BNPL, tools like FICOās new scores could help lenders better serve a new generation of borrowersāwhile giving consumers more opportunities to build their financial future responsibly.Ā
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Author:Ā Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clientsā criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jenniferās guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
