Buy now, pay later (BNPL) purchases can now impact your credit score as FICO has announced the addition of BNPL loan data to some credit scores starting this fall. Here’s what that means:
The shift toward splitting up payments has become widespread with online shopping, with 15% of American adults using BNPL in 2024, according to the Federal Reserve. FICO is now incorporating BNPL data into its scoring products to give lenders a fuller picture of people’s finances.
However, this change may not make a huge difference for many consumers, as they often use BNPL sporadically. A recent study from the Consumer Financial Protection Bureau found that people tend to use these loans only occasionally.
FICO says paying on time will help your credit score, while missing payments could ding it. However, lenders must also consider the risks of hurting your score, especially since almost a quarter of people using BNPL made late payments last year.
BNPL loans differ from credit cards in terms of protections, and regulators have implemented rules to address these concerns. The Consumer Financial Protection Bureau issued a rule treating BNPL lenders similarly to credit card providers, providing consumers with more protections, including dispute resolution options.
Starting this fall, FICO’s scoring products will incorporate BNPL loan data, allowing companies to generate scores for consumers who use these loans as their first foray into credit or responsibly making payments on time. However, the impact of this change may be limited, and consumers should still prioritize making timely payments and understanding their credit utilization to maintain a healthy credit score.
The introduction of BNPL loan data is expected to provide lenders with a more comprehensive view of people’s finances but also highlights the need for responsible borrowing practices and careful management of debt.
Source: https://www.npr.org/2025/07/05/nx-s1-5448793/credit-score-fico-buy-now-pay-later-affirm-klarna