FICO Score buy now and pay later

[AndySoCal]

New models will  include this data

https://investors.fico.com/news-releases/news-release-details/fico-unveils-groundbreaking-credit-sco... 

[pizzadude]

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

[Thomas_Thumb]

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

[FicoMike0]

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?

[pizzadude]

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

[pmakh]

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." 

[Thomas_Thumb]

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

[Windchill92]

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@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

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

[pizzadude]

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@Windchill92 wrote:

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@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?

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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.

[Thomas_Thumb]

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.