BNPL loans will now count toward Americans’ credit scores

On Monday, Fair Isaac Corp., the company behind the FICO credit scores used by 90% of US lenders, announced the fall launch of two new scoring models that, for the first time, factor in “buy now, pay later” loans. The move gives lenders a way to assess a fast-growing form of borrowing that has long operated outside the reach of traditional credit scores and reports.

Why now?

Put simply, it’s just become too big to ignore. Per eMarketer, over 86 million Americans used BNPL services last year — nearly double the number in 2021 — with shoppers now relying on it for everything from groceries to travel to dining out. And, while it may have started as a niche option for luxury splurges, today the heaviest users aren’t the most financially comfortable.

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