Fair Isaac Adds Buy Now, Pay Later Data To Credit Scores, Offering Lenders A Clearer Picture

Fair Isaac Corp. FICO on Monday announced the launch of FICO Score 10 BNPL and FICO Score 10 T BNPL to incorporate Buy Now, Pay Later (BNPL) data.

The scores give lenders greater visibility into consumers’ repayment behaviors, enabling a more comprehensive view of their credit readiness and ultimately improving the lending experience.

FICO Score 10 BNPL and FICO Score 10 T BNPL were developed to harness the benefits offered by incorporating consumers’ BNPL data into calculations.

Also Read: Apple Revises Payment Options, Reportedly Ends ‘Buy Now, Pay Later’ Service

This treatment has proven effective at capturing predictive signals from including BNPL data while increasing FICO Scores for some BNPL borrowers.

In developing these new scores, FICO sought input from many of the largest lenders in the U.S. FICO Score 10 BNPL and FICO Score 10 T BNPL will likely be available in Fall 2025.

A growing share of Americans are using BNPL loans for electronics, clothing, and food. According to a recent LendingTree survey, 25% of BNPL users reported using the loans to pay for groceries, up from just 14% in 2024 and 21% in 2023.

Many consumers don’t fully understand how BNPL loans affect their credit, and many incorrectly assume that making on-time payments helps improve their credit score.

Last December, Affirm Holdings AFRM raised $4 billion from Sixth Street to scale BNPL loans. This provided additional off-balance sheet funding, allowing Affirm to extend more than $20 billion in loans over the next three years.

Price Action: FICO stock is trading up by 2.30% to $1,846.30 at last check Monday.

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