topic Re: FICO Score buy now and pay later in Credit in the News

FICO Score buy now and pay later

AndySoCal — Fri, 27 Jun 2025 23:16:38 GMT

New models will include this data

https://investors.fico.com/news-releases/news-release-details/fico-unveils-groundbreaking-credit-scores-incorporate-buy-now

Re: FICO Score buy now and pay later

pizzadude — Fri, 27 Jun 2025 23:35:48 GMT

Interesting, they're selling new / modified version of the 10 scores: FICO® Score 10 BNPL and FICO® Score 10 T BNPL

Re: FICO Score buy now and pay later

Thomas_Thumb — Sat, 28 Jun 2025 00:46:46 GMT

This is good. Positive on time BNPL behavior should be a score booster. BNPN abusers and chronic Buy Now Pay Late users should be tagged with score penalties.

Hopefully mere presence of a BNPL account on file won't be classified as a negative (like an inquiry). That being said, I can see how a handful of new BNPL accounts represents an element of risk - perhaps moreso than a handful of new CCs because each has an associated debt obligation

Re: FICO Score buy now and pay later

FicoMike0 — Sat, 28 Jun 2025 21:05:59 GMT

Not reporting used to be a feature. I wonder how they'll handle reporting. Report like an installment loan? Will there be a hp? New category?

Re: FICO Score buy now and pay later

pizzadude — Sun, 29 Jun 2025 18:59:52 GMT

Affirm is showing up now as an installment loan I believe, which I think makes sense as each loan has a specific term / number of payments and closes out once PIF

Re: FICO Score buy now and pay later

pmakh — Sun, 29 Jun 2025 19:46:01 GMT

Will it be retroactive? I.E. Will my current loan with Klarna start reporting?

Doea anyone know when this will start reporting? Can't find a date other than "autumn."

Re: FICO Score buy now and pay later

Thomas_Thumb — Sun, 29 Jun 2025 23:05:35 GMT

So far, Klarna has elected not to report. So, no. As far as I know, reporting is not retroactive to closed accounts.

Re: FICO Score buy now and pay later

Windchill92 — Wed, 02 Jul 2025 04:10:02 GMT

@pizzadude wrote:
Affirm is showing up now as an installment loan I believe, which I think makes sense as each loan has a specific term / number of payments and closes out once PIF

Wonder if this could be an alternative for folks needing an installment loan, like a PenFed/NFCU SSL?

Re: FICO Score buy now and pay later

pizzadude — Wed, 02 Jul 2025 18:31:20 GMT

@Windchill92 wrote:
@pizzadude wrote:
Affirm is showing up now as an installment loan I believe, which I think makes sense as each loan has a specific term / number of payments and closes out once PIF
Wonder if this could be an alternative for folks needing an installment loan, like a PenFed/NFCU SSL?

Yeah it seems that is a possibility, at least the OP in that thread stated that he saw a ~40ish point gain when his Affirm loans reported.

Re: FICO Score buy now and pay later

Thomas_Thumb — Thu, 03 Jul 2025 18:19:34 GMT

Not exactly. In another thread a poster mentioned a 31 point loss when an Upstart loan closed.

So... Although the BNPL is a loan which helps mix, it is typically short term - often just 2 months although some can go to 18 months. So, you lose the open loan boost when it closes. Most SSL can remain open for up to 10 years.

I don't care about having an open loan but, I do want to maintain mix with a closed loan. So, I will likely make a BNPL purchase near the time my closed mortgage will likely fall off my CRA files.