FICO Credit Score 10 BNPL and FICO Score 10 T BNPL Update 2025: If you’ve ever used a Buy Now, Pay Later (BNPL) service to split up a big purchase, you’re not alone. Millions of Americans are turning to these flexible payment options — especially younger adults and those trying to manage tight monthly budgets. But now, your use of BNPL could start affecting something much bigger: your credit score.
What’s Actually Happening?
FICO the company behind the most widely used credit scores in the U.S. — is planning to launch new credit scoring models this fall that include BNPL activity.
Until now, most BNPL loans weren’t even visible to lenders. They operated in a sort of “blind spot,” making it hard to track how well people were managing these short-term installment payments.
“A number of the largest lenders in the U.S. told us, loud and clear, there is a need for a credit scoring model that includes the BNPL data,” said Ethan Dornhelm, VP at FICO.
Fico to launch new credit scores incorporating buy-now-pay-later data
| Key Change | Details |
|---|---|
| New Credit Scores | FICO Score 10 BNPL and FICO Score 10 T BNPL |
| What It Includes | Your BNPL loan activity and repayment history |
| Who It Impacts | Anyone using “pay later” options like Affirm, Klarna, or Afterpay |
| Why It Matters | Could help — or hurt — your credit score depending on how you manage it |
Why It Could Help You Build Credit
For people with thin or no credit histories — especially young adults — this could actually be a good thing.
“That’s the more optimistic use case,” said Ted Rossman, senior credit analyst at Bankrate. “If they use Buy Now, Pay Later responsibly, it should help them.”
If you’ve made all your payments on time, the inclusion of BNPL data could give you a stronger credit profile — especially if you’re trying to build a history for the first time.
But There’s a Flip Side: Overspending & “Phantom Debt”
BNPL is incredibly easy to use — and that’s part of the problem. It’s not uncommon for people to have several installment loans active at once, without realizing how much they’ve committed to repay.
A recent Bankrate survey found:
- Nearly 50% of BNPL users had at least one issue with the service
- The most common problem? Overspending
BNPL has also led to what’s being called “phantom debt” — financial obligations that don’t appear on your credit report but still exist. That invisibility has made it harder for lenders and consumers alike to fully assess financial risk.
Why Credit Scoring Is So Complex
Even though FICO scores are used in 90% of lending decisions, not all lenders use the latest versions. Many mortgage lenders, for example, still rely on older models like FICO Score 2, 4, or 5.
“It’s kind of like an iPhone — just because the latest version exists doesn’t mean everyone’s using it,” Rossman explained.
So while these BNPL-focused scores are coming, don’t expect overnight changes to how your credit is evaluated everywhere.
How BNPL Loans Behave Differently
BNPL loans don’t work like traditional credit cards or personal loans. For example:
- They often open and close within weeks
- You could have multiple BNPL accounts open in a short time
- There’s no traditional “credit utilization” like with revolving debt
This behavior could confuse older scoring models — so FICO created a novel scoring method after a joint study with BNPL giant Affirm.
“We developed an approach that aggregates BNPL loans together to avoid over-penalizing consumers,” Dornhelm said.
FICO official Press Release Details Click here
What You Can Do Right Now
Here’s how to stay safe — and possibly benefit — as these new scores roll out:
Do:
- Keep track of all your BNPL accounts
- Make every payment on time
- Limit the number of open BNPL loans at once
Avoid:
- Using BNPL for everyday essentials like groceries
- Taking on multiple loans you can’t realistically repay
- Assuming your BNPL activity doesn’t matter — it soon will
FAQs About BNPL and Credit Scores
1. Will every lender use these new FICO scores?
Not right away. Many lenders still rely on older models, but this could change over time.
2. What BNPL providers report to credit bureaus?
Some, like Affirm, have started reporting to Experian and TransUnion. Others haven’t yet.
3. Can BNPL actually help my credit score?
Yes — if you make payments on time and don’t overborrow, it could help establish a positive payment history.
4. Does this mean BNPL is now like a credit card?
Not quite. It’s still a short-term installment loan, but the way it’s reported and scored is starting to resemble more traditional credit.
Final Thoughts
This move by FICO could be a major shift — especially for younger Americans or those rebuilding their credit. But like all credit tools, Buy Now, Pay Later is only helpful if you use it wisely.
If you’re relying on BNPL, now’s the time to get organized, stay on top of your payments, and avoid the trap of silent overspending.