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FICO to Include BNPL Data in Credit Scores

6/27/2025

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Summary

FICO Enhances Credit Scores

FICO will integrate Buy Now, Pay Later (BNPL) data into credit scores this fall, a first for major providers.
New scores, FICO Score 10 BNPL and FICO Score 10 T BNPL, enhance lenders' insights into repayment behavior.
Approximately 50% of Americans have utilized BNPL loans, often unaware of their credit score implications.
Timely BNPL payments can boost credit scores, while missed payments may lead to overspending concerns.
This change aims to promote financial inclusion and clarify consumer debt profiles.

Summary

New York Regulates BNPL

New York enacted the BNPL Act within its 2026 budget, effective 180 days post-regulatory guidelines.
The act regulates point-of-sale installment financing, requiring lenders to obtain licenses from NY-DFS.
It enforces risk-based underwriting and consumer disclosures, offering protections akin to credit cards under federal law.
This legislation addresses regulatory gaps identified by the CFPB, promoting thorough oversight of BNPL products.

History

Historical Context

The Community Reinvestment Act of 1977 aimed to address discriminatory lending by mandating banks to serve all community segments. Today, nearly 50% of Americans utilize Buy Now, Pay Later (BNPL) loans, prompting New York's BNPL Act, effective in 2026, to regulate these services. This legislation reflects an increasing demand for consumer protections in modern financing, ensuring responsible lending practices.

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FICO Enhances Credit Scores

FICO will integrate Buy Now, Pay Later (BNPL) data into credit scores this fall, a first for major providers.
New scores, FICO Score 10 BNPL and FICO Score 10 T BNPL, enhance lenders' insights into repayment behavior.
Approximately 50% of Americans have utilized BNPL loans, often unaware of their credit score implications.
Timely BNPL payments can boost credit scores, while missed payments may lead to overspending concerns.
This change aims to promote financial inclusion and clarify consumer debt profiles.

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