FICO Offers New Credit Score Service to Account for Buy-Now-Pay-Later Loans

FICO, the publicly traded data analytics company known for its aggregate credit score service, has launched a new buy-now-pay-later (BNPL) option to provide inexperienced credit users with better access to financial and banking services.

Formally known as the Fair Isaac Corporation, FICO announced on June 23 that it had developed two new scoring services to reflect the rising importance of BNPL loans in the U.S. credit-reporting system, which includes the Big Three credit reporting agencies: Experian, Equifax, and TransUnion.

Currently, FICO produces the widely used consumer credit scores that are used by 90 percent of U.S. lenders. They range from 300 to 850 and are based on a handful of factors that determine how likely a borrower is to repay a loan, which in turn affects borrowing capacity, repayment terms, and interest rates.

Alongside the company’s existing FICO scoring suite, the new BNPL versions will incorporate data from an expanding list of online and digital payment services into traditional credit reports, said Julie May, FICO’s vice president and general manager of B2B.

The Bozeman, Montana-based financial analytics company said the new BNPL scoring platforms will give lenders better insight into consumers’ repayment behaviors, allowing a more complete view of their credit readiness.

“Buy Now, Pay Later loans are playing an increasingly important role in consumers’ financial lives. By expanding our FICO Score 10 Suite with new models designed to incorporate BNPL data, we’re enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products,” May said.

“This innovation also supports our mission to expand financial inclusion by helping more consumers gain access to credit.”

In developing these new scores, FICO said it sought input from many of the largest lenders in the United States who recognized the need for a modern scoring model that includes BNPL data. Across this group, it said, there was a broad consensus: integrating BNPL data into credit scoring is a critical advancement that enables lenders to make more informed and accurate decisions while responsibly expanding credit access.

“Our clients tell us that FICO’s initiative to include BNPL data in credit scoring is a progressive step that acknowledges the evolving landscape of consumer financing. By capturing a broader view of consumer credit behavior, lenders believe they can make more informed decisions, ultimately benefiting both the industry and consumers,” May said.

Currently, BNPL companies such as Affirm, Afterpay, Klarna, and PayPal do not regularly report data to the major credit bureaus. However, the Consumer Financial Protection Bureau (CFPB) ruled in 2024 that BNPL providers should be treated like credit card issuers and provide the same legal protections and rights to consumers.

This ruling by former CFPB Director Rohit Chopra prompted lawsuits from several financial industry trade groups, which argued that the watchdog agency was exceeding its statutory authority. In February, President Donald Trump fired Chopra as part of his efforts to roll back regulatory overreach of the financial industry.

Since then, the Trump administration has halted CFPB operations and most enforcement actions as Congress seeks to cut funding to the watchdog agency as part of the One Big Beautiful Bill budget proposal. Additionally, the current CFPB staff announced on May 6 that it will not prioritize enforcing the BNPL ruling and is taking steps to rescind the order.