FICO Will Track Buy Now, Pay Later Data—Here’s What Homebuyers Should Know

Every holiday season, I tell myself I’ll stick to a budget. And every year, I blow past it.

Lately, Buy Now, Pay Later (BNPL) services like Klarna and Afterpay have made that a little too easy, letting me split a big purchase into smaller, interest-free payments. I’m not alone.

In the past year, 15% of American adults like me have used BNPL services, according to data from the Federal Reserve. 

But starting this fall, those short-term loans will be incorporated into FICO credit scores—an important metric used by mortgage lenders when evaluating hopeful homebuyers. While it’s unlikely that these changes will affect homebuying in the short term, they could pave the way for how home lenders evaluate the borrowers of the future.

Why FICO is adding BNPL now

What many might not realize is that BNPL is a mini loan, which is to say, it's a type of debt.

Unlike many other types of debt, BNPL services are often interest-free and don’t carry service fees, making them a low-friction way to buy anything from an engagement ring to groceries.

Until now, most BNPL loans didn’t appear on credit reports, creating a “blind spot” for lenders.

"That set up a possibility where a lender might offer more credit than a person can reasonably afford to repay," Adam Rust, director of financial services at the Consumer Federation of America, told NPR.

That’s why FICO’s new models—FICO 10 BNPL and FICO 10T BNPL—will incorporate BNPL data into their scores, giving lenders a fuller picture of borrowers’ financial behavior.

"We’re enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products,” Julie May, vice president and general manager of B2B Scores at FICO, said in a press release announcing the new models. “This innovation also supports our mission to expand financial inclusion by helping more consumers gain access to credit.”

Or, in Rust’s words: "We want people to get the credit that they need—but we don't want lenders to be flooding the market with credit beyond what's safe and reasonable for consumers.”

Why mortgage lenders won’t feel the change yet

It’s a major shift for the credit scoring industry, but mortgage borrowers don’t have to worry—at least not yet, says Cynthia Chen, founder and CEO of Kikoff, a credit-building company.

Upgrading scoring systems is slow, expensive, and highly regulated. So there will likely be a long runway before these changes are reflected in lenders’ decisions.

“Mortgage lenders still rely on older scoring models such as FICO 8 or even earlier versions,” Chen explains. "That means most underwriters reviewing mortgage or auto applications this year will not see BNPL data."

That matters because your credit score determines more than whether you qualify for a mortgage—it can also influence the interest rate you’re offered. In general, FICO scores range from 300 to 850. Scores between 750 and 850 are considered excellent, 700 to 749 good, 650 to 699 fair, and anything below 650 poor.

Just how much these new models will affect FICO scores is unclear, but early estimates say that it’s a minimal impact for most BNPL users.

Before releasing the new models, FICO ran a 12-month study with BNPL provider Affirm and found that including BNPL data shifted scores by fewer than 10 points for over 85% of customers. The company didn’t disclose how scores changed for the remaining 15%.

So for homebuyers in 2025, BNPL history likely won’t move the needle on mortgage approval or rates. But that could change if lenders start finding that BNPL patterns offer meaningful insight into borrower risk and repayment behavior.

The hidden risk of missed BNPL payments

A silver lining of the new credit models is that they’re providing an opportunity for BNPL users to understand how their usage affects their financial health.

“A late BNPL payment can now hurt your credit the same way a missed credit card or loan payment would,” says Chen. "For homebuyers, the takeaway is caution, not panic."

Because these installment loans often operate in the background, it’s easy to lose track of due dates—especially for smaller purchases. And that can add up: 41% of BNPL users reported missing a payment in the past year, according to a September 2025 LendingTree survey.

The fallout stands to hit newer borrowers hardest. Those with thin credit histories have fewer positive accounts to offset a late payment, and many are younger buyers already navigating high home prices and student debt. Gen Z and millennials are also the heaviest BNPL users and twice as likely to juggle multiple BNPL loans at once compared with baby boomers, the survey found.

For those who manage BNPL responsibly, the change could eventually provide a fuller picture of their financial behavior, but that may be a further-off horizon.

“While your BNPL usage probably won’t boost your score enough to matter, it can work against you if you fall behind,” explains Chen.

What homebuyers should do now

“BNPL is entering the credit conversation,” Chen adds, “but it’s not yet shaping it.”

So using BNPL services won’t make or break a mortgage application today, but increased industry scrutiny of how consumers use these products points to it being a larger factor in the lending decisions of tomorrow.

In the near term, though, the best strategy for aspiring homebuyers is still to focus on the credit lines that count.

“If you’re planning to buy a home in the next year, focus instead on tried-and-true credit builders: consistent on-time payments, low credit card utilization, and accounts that report to all three major bureaus,” says Chen.

BNPL can be a helpful on-ramp for newcomers to credit—but it’s not a shortcut to mortgage readiness. For now, solid habits with traditional credit products will carry far more weight when it comes time to apply for a loan.