I agree that BNPL should be reported to credit bureaus. However the way it's scored needs to be entirely different from the traditional FICO model. Applying current credit scoring logic to BNPL doesn’t make much sense, especially when you're talking about short-term splits like 4 payments over 6–8 weeks. For instance, account age and length of credit history are major factors in most scoring models, but they become meaningless when BNPL accounts are often opened and closed within short periods.
For many people, BNPL is a practical option. Say your fridge breaks—you could pay for it upfront and have no money left for food, or you could split it into 4 payments and stay afloat. That’s not financial irresponsibility; that’s a reasonable use of a tool that fits the situation. Sure you can add it to a card, but are you going to get 0% unless you have a card from that exact retailer and perhaps today's sky is purple and they are running a promotion? It's nice that BNPL works at most places.
BNPL can avoid some of the traps of traditional credit cards. A lot of retail financing offers such as deferred interest schemes. These are confusing for most people and end up costing more than expected. BNPL, on the other hand, often has clear, fixed payments known at the time of purchase. That kind of predictability is appealing, especially to people who have been burned by fine print and changing terms on credit cards.
BNPL is just that—a tool. It's not inherently good or bad. Like anything else in personal finance, it depends on how you use it. Some people abuse it, sure—but the same is true of credit cards, personal loans, and overdrafts. You are either your own worse enemy or your best friend.
Regarding credit scoring, FICO 10 is already available (you can buy it on MyFICO), and it doesn’t include BNPL unless they create a variant like FICO 10T, which incorporates balance trending. So unless a new scoring model is specifically built around short-term financing, BNPL accounts shouldn’t just be jammed into the existing framework. Either build a separate BNPL score—or at least adjust key factors like age of accounts and utilization to reflect the nature of these products.
You argue that too many people have high scores, and some scores may drop because of BNPL reporting, or you may find that even more people end up with higher scores. BNPL puts everything on auto drive, they auto take the money so you do not have to remember to make payments. For the younger generation that is gold.
In my case, yes I’m skeptical of BNPL, but that doesn’t mean I won’t use it when it makes sense. For example, I’m currently financing a bed through a BNPL provider. Why? Because I was offered 18 months at 0% interest no strings attached, no deferred interest traps, no fine print to trip over. Hard to beat an interest-free loan. Rather than cashing out investments or draining savings, I get to keep my money working for me in other places in the market and other ventures.
To me, that’s a smart use of credit. It’s not about “can I afford this now,” but “why would I unnecessarily tie up cash when I can leverage a zero-cost financing option instead?”
But we get it ... you hate BNPL
