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FICO will incorporate buy now, pay later (BNPL) loan data into some credit scores starting this fall. This affects 15% of American adults who used BNPL in the past year, primarily low-to-middle income individuals, women, and younger generations. While on-time payments will boost scores, late payments will negatively impact them. The impact is generally small (within 10 points for most), but it provides a fuller financial picture for lenders and helps establish credit for first-time users. However, BNPL lacks the same consumer protections as credit cards.

Prepared by Christopher Adams and reviewed by editorial team.