What changed
On June 23, 2025, FICO announced two new credit scores that include buy now, pay later (BNPL) loan data: FICO Score 10 BNPL and FICO Score 10 T BNPL. Until then, most pay-in-four plans and short installment loans didn’t show up in the scores lenders use, even if you paid every installment on time.
FICO said the new models would be available alongside its existing scores at no extra cost to lenders. That last part is important: a lender has to choose to use these scores. Many lenders still use older FICO versions, so a BNPL loan may count in one score and not in another.
The data side is changing too. Affirm, one of the largest BNPL providers, began sharing loan data with the credit bureau Experian in April 2025, according to NPR’s reporting. As more providers report, more of your BNPL history can appear on your credit reports.
How buy now, pay later works
A BNPL plan splits a purchase into a few installments, often four payments spread over several weeks, with the first payment due at checkout. Many short plans charge no interest if you pay on time. Longer plans, typically for larger purchases, can carry an APR similar to other installment loans. Late fees and, in some cases, interest apply when a payment is missed.
Because the loans are small and quick to open, it’s easy to have several running at once. That’s why lenders want the data: one plan tells them little, but five open plans with overlapping due dates can signal a squeezed budget.
| Pay-in-4 BNPL | Credit card | Small installment loan | |
|---|---|---|---|
| Typical cost if paid on time | Often no interest | 22.36% average APR on balances charged interest (Aug 2026) | Fixed APR shown before you sign |
| Payment schedule | Set installments | Minimum payment, no set end date | Fixed monthly payment and payoff date |
| In FICO Scores | Only in BNPL-aware scores, if reported | Yes | Yes |
What FICO’s study found
FICO tested the new scores in a yearlong study with Affirm. It found that BNPL data moved scores by about 10 points or less, up or down, for more than 85% of the consumers studied. FICO said the movement was more likely to be positive than negative, and that most people who had recently opened five or more Affirm loans saw their scores rise or stay the same.
Two cautions. First, FICO didn’t publish how scores changed for the remaining 15% or so. Second, the study used one provider’s data from 2024–2025. Your result depends on how many BNPL loans you open, how much you owe and, above all, whether you pay on time.
Why lenders want this data. FICO says it consulted some of the largest U.S. lenders, who broadly agreed BNPL data helps them see a fuller picture of a borrower’s obligations. If you have several plans open at once, a lender using these scores can now see that.
Who uses buy now, pay later
BNPL keeps growing. In the Federal Reserve’s Survey of Household Economics and Decisionmaking (SHED), the share of adults who used BNPL in the past year rose every year since 2021:
| Year | All adults | Men | Women |
|---|---|---|---|
| 2021 | 10% | 9% | 12% |
| 2022 | 12% | 10% | 14% |
| 2023 | 14% | 12% | 15% |
| 2024 | 15% | 12% | 17% |
| 2025 | 16% | 14% | 19% |
People with thin savings lean on it most. In the 2025 survey, 31% of adults with less than $100 in emergency savings used BNPL, compared with 8% of those with $2,000 or more.
It doesn’t always go smoothly. Among BNPL users, 21% paid a late fee or had an overdraft, and for 11% a BNPL payment triggered an overdraft or non-sufficient-funds fee. Late fees and overdrafts were most common on plans used for groceries or food delivery (43%) and medical or veterinary bills (34%).
How BNPL can help or hurt your score
It can help when
- You pay every installment on time. Payment history is the largest part of a FICO Score, at about 35%.
- You have a thin credit file. On-time BNPL payments can add positive history where the lender’s score counts them.
It can hurt when
- You miss a payment that the provider reports. A late payment can stay on a credit report for up to seven years.
- You stack several plans at once. Many small loans opened close together can make you look stretched to a lender.
- BNPL payments pull money out of checking on fixed dates and trigger overdraft fees, which can snowball into other missed bills.
Fewer protections than a credit card. Consumer advocates quoted by NPR point out that if you cancel an order and the seller won’t refund you, you may still owe the BNPL payments. In May 2025 the CFPB said it was pulling back from enforcing a rule that treated BNPL lenders like card issuers, including for disputes, and would consider rescinding it.
How to use BNPL without hurting your credit
- Keep one plan open at a time when you can, and track every due date in one place.
- Set up autopay from an account with a cushion, so a payment doesn’t trigger an overdraft.
- Avoid BNPL for everyday spending like groceries, where the Fed found late fees and overdrafts were most common.
- Check your credit reports at AnnualCreditReport.com, where weekly reports are free, to see which plans are being reported.
- Compare with a small installment loan for larger costs. A fixed loan gives you one payment and one payoff date. Our calculators show the full cost.
Want to understand the score itself? Read our guide to credit scores.
Frequently asked questions
Does buy now, pay later affect my credit score?
It can. FICO Score 10 BNPL and FICO Score 10 T BNPL count BNPL loans, and some providers report to credit bureaus. Whether it affects the score a lender sees depends on which score that lender uses.
How much can BNPL change my score?
In FICO’s study with Affirm data, scores moved by about 10 points or less for more than 85% of consumers, and changes were more often positive than negative.
Will a missed BNPL payment hurt my credit?
If the provider reports it, yes. Late payments can stay on a credit report for up to seven years, and payment history is the biggest part of a FICO Score.
Is BNPL cheaper than a personal loan?
Pay-in-four plans paid on time often carry no interest, but late fees and overdrafts add cost. For larger expenses, compare the total cost of a fixed installment loan using a calculator.
- PaymentsJournal, FICO debuts credit scores with BNPL data, Jun 2025
- NPR/WFAE, Buy now, pay later purchases can now affect your credit score, Jul 5, 2025
- Federal Reserve, Consumer and Community Context, Aug 2026 (2025 SHED data on BNPL)
- myFICO, What’s in my FICO Scores
- CFPB, How long does information stay on my credit report?
This article is general information, not financial advice. Rates and rules change; check the linked sources for the latest figures.