FICO will include Buy Now, Pay Later loan data in credit scores, impacting consumers' credit issues.

From Yahoo Finance: 2025-06-24 12:00:00

FICO plans to include Buy Now, Pay Later loan data in credit scores by late 2025. This move will give lenders insight into consumers’ repayment behavior for installment loans, impacting those with credit issues. Women, Black, Latino consumers, and those making $20,001-$50,000 have been key BNPL users.

Younger generational consumers are likely BNPL users due to flexible payment options. Chief Credit Analyst Ted Rossman highlights the importance of responsible BNPL use. BNPL loans, like Klarna and Afterpay, were once seen as “ghost debt,” but FICO’s update will change this narrative, affecting a growing number of consumers.

During the pandemic, BNPLs were used for essentials like groceries. LendingTree data shows a 14% increase in grocery purchases using BNPL from 2024 to 2025. FICO’s Julie May views this as a significant advancement in credit scoring, acknowledging the growing role of BNPL loans in consumers’ financial lives.

Read more: Buy Now, Pay Later Loans Set To Factor Into Consumer FICO Scores