Best known for its FICO scoring model, Fair Isaac Corp. said on June 23 that it will introduce two new credit score variations this fall that incorporate Buy Now, Pay Later (BNPL) data for the first time, according to reports. 

The use of BNPL plans, well-liked consumer finance instruments that let purchases be divided into interest-free installments, usually spread out over six weeks, has increased quickly. It is anticipated that this year's transaction volume in the U.S. BNPL market will total approximately $108 billion. Over 90 million Americans use these payment plans, but historically, they haven't been represented in mainstream credit scores, so lenders are unaware of the full amount of debt owed. 

Following an analysis of over 500,000 customers, the newly created scores—tentatively dubbed FICO Score 10 BNPL and FICO Score 10 T BNPL—were created in partnership with BNPL provider Affirm. 

FICO stressed that the models will combine several BNPL loans into a single "group," avoiding the artificial penalties found in conventional scoring systems, as opposed to treating each BNPL plan as a new credit line, which could unjustly lower scores. 

These improved scores, according to FICO, are intended to give lenders a "more comprehensive view" of consumers' repayment patterns and facilitate credit access, especially for those whose first credit experiences involve BNPL. 

According to preliminary testing, the majority of people with at least five Affirm BNPL loans either saw no change in their score or saw only slight improvements.

Experts warn that using BNPL is not risk-free, though. Concerns regarding phantom debt and delinquencies were raised by a recent Federal Reserve report that revealed that nearly one-quarter of BNPL users paid late in 2024, up from 18% in 2023. 

Under the new scoring system, a person's FICO score will suffer if they miss BNPL payments.

The changes are the first time a particular loan type has been incorporated into FICO's credit scoring models. Lenders will be able to compare both versions of the scores, which will be provided alongside current FICO models at no additional cost. Credit bureaus, such as Experian, Equifax, and TransUnion, will decide when to make the new BNPL scores available to the public, while lenders will receive them this fall.