BNPL & Credit Scores: What the Fall 2025 Update Means for You

1. Why This Change Matters

Starting Fall 2025, FICO will introduce two new scoring models—FICO® Score 10 BNPL and FICO® Score 10 T BNPL—that incorporate Buy Now, Pay Later (BNPL) data into credit scores. Until now, these short-term, interest-free installment plans were invisible to credit bureaus, but FICO recognizes their importance in today’s borrowing landscape. By integrating BNPL activity, lenders will gain a clearer, more accurate insight into consumers’ overall debt patterns and repayment habits.

2. The Mechanics of FICO’s New Models

• Data-driven development: FICO’s year-long partnership with Affirm analyzed over 500,000 BNPL borrowers, revealing how installment patterns impact creditworthiness.

• Smart aggregation: To avoid punishing consumers for regularly opening multiple small BNPL loans, FICO consolidates them into single variables before scoring.

• Parallel rollout: Both BNPL-inclusive models and the standard FICO Score 10 will be available concurrently for lenders starting in Fall 2025.

3. Pros & Cons of Including BNPL in Scores

✅ Potential Benefits

• Credit-building on autopilot: On-time BNPL repayments will now count positively—over 85% of analyzed users saw score moves within ±10 points, with many gaining.

• Boost for thin-file consumers: Young adults and those new to credit may benefit from their responsible BNPL usage history.

• Improved transparency: Lenders will be able to identify and prevent “phantom debt” and “loan stacking” by tracking all BNPL activity.

⚠️ Possible Risks

• Penalties for missed payments: Late or incomplete BNPL installments will now hurt credit scores—payment history represents 35% of FICO models.

• Impulse spending hazard: BNPL can encourage overspending; about 41% of users had at least one late payment in the past year.

• Uneven adoption: Not all BNPL providers or lenders report data or use the new models, so impact will vary depending on which lender and BNPL platform are involved.

4. Why This Is Hot Right Now

• Explosive BNPL growth: Over 90 million Americans are expected to use BNPL in 2025, with transactions topping $100 billion.

• Consumer protection concerns: Regulatory bodies like CFPB and consumer advocates raise red flags about overspending and debt among vulnerable group.

• Shift in regulatory reporting: Affirm began reporting BNPL loans to Experian in April 2025, and TransUnion has followed—paving the way for FICO’s model update.

5. What You Should Do

1. Stay on time

Autopay or calendar reminders can prevent late payments, which now carry credit consequences.

2. Avoid loan stacking

Opening many BNPL plans at once—even with timely repayment—could raise concerns; FICO’s aggregation helps, but signals may still be flagged..

3. Choose reporting providers

Identify BNPL services that report to bureaus (like Affirm). Providers without reporting won’t affect your score.

4. Monitor your credit profile

Once the new models are live, check your FICO version. Review non-BNPL credit accounts to maintain balance and history length.

5. Use BNPL sparingly

Reserve BNPL for planned purchases you can pay off on time. Avoid everyday essentials via BNPL—doing so could signal financial stress.

Fall 2025 will be a milestone in credit scoring: BNPL moves from the shadows into the mainstream. For those who pay responsibly, BNPL becomes a credit builder. But for those who miss payments or over-leverage, it becomes a liability.

Bottom line: BNPL is no longer free credit—it’s credit. Use it carefully, pay punctually, and let it work to strengthen your FICO score.