Buy Now, Pay Later? FICO’s Watching

That $200 chair split into four easy payments may soon carry more weight than you expected.

FICO, the company behind the most commonly used credit scores, is rolling out two new models that include buy-now-pay-later (BNPL) loans, according to Axios.

More than 90 million Americans are projected to use BNPL services in 2025, Axios reports.

How your score is evolving

According to the Consumer Financial Protection Bureau (CFPB), most BNPL services have traditionally stayed off credit reports, meaning repayment behavior on these short-term loans hasn’t helped or hurt your credit score.

That’s now beginning to change. FICO’s new scoring models, FICO Score 10 BNPL and FICO Score 10 T BNPL, specifically incorporate BNPL activity, Axios reports.

These models are designed to give lenders more visibility into how borrowers manage installment-based debt.

While FICO hasn’t said whether these scores will replace existing ones, lenders may start adopting them to better assess consumer credit readiness.

Axios also reports that Affirm has begun sharing BNPL data with Experian, signaling a shift toward greater transparency. Future credit scoring models may build on this data.

If you use BNPL regularly, now is a good time to treat it like any other loan. Track your due dates, set reminders, and consider enabling autopay.

Because many BNPL services don’t send monthly statements, it’s easy to overlook a payment, and soon, those missed payments could count against you.

Why BNPL is now on lenders’ radar

Axios reports that FICO and Affirm ran a simulation showing that users with five or more BNPL loans often saw their scores stay the same or improve if they paid on time.

You may want to stick with just one or two BNPL providers to avoid payment confusion. This can also make tracking your repayment habits easier, especially now that repayment patterns could start influencing your score.

The downside of delayed payments

Not all BNPL users stay current. According to Axios, Federal Reserve data shows nearly 25% of users made late payments in 2024, up from 18% in 2023.

Those delays could have lasting consequences now that BNPL will appear on credit reports.

Axios notes that some experts warn of “phantom debt”, loans that haven’t appeared in reports until now. Once visible, they could affect everything from loan approvals to interest rates.

Before using BNPL, it’s worth asking whether the purchase would feel comfortable on a credit card. If not, it may be better to skip the payment plan altogether and delay buying until later.

BNPL can help — or hurt — depending on your habits

The shift in credit scoring models means BNPL behavior can be good news if you pay on time, and bad news if you don’t.

These loans may start influencing your credit profile in the same way as credit cards or personal loans. That makes it especially important to stay organized, avoid overextending yourself, and carefully track your payment dates.

Even small balances, if missed, could carry outsized consequences once scoring models begin factoring them in.

Don’t let small payments sink your score

Axios notes that FICO’s models have yet to launch, so there’s still time to adjust.

Reviewing your active BNPL loans and catching up on upcoming payments could reduce the chance of a negative impact later.

Even though BNPL feels like a fast, low-stakes option, it’s still borrowing — and it may soon carry long-term credit consequences.