This FICO Change Could Significantly Impact Your Credit Score

In a June 2025 release, FICO revealed their latest scoring systems to the public. FICO Score 10 BNPL and FICO Score 10 T BNPL are an attempt by the global credit analytics company to adjust for the popularity of BNPL (Buy Now, Pay Later) products. This may end up demonstrating how shopping for loans could hurt your credit score, since the BNPL model has now been incorporated into the loan process. BNPL loans offer simplified paths to financing, typically with lower requirements than traditional credit lines. Popular companies like Klarna and Affirm provide consumers with a platform for installment loans over a specific period of time (often spread out over four payments with a 25% down payment). Large institutional lenders, per FICO's release, provided their own thoughts on the need to incorporate BNPL data into FICO's credit scoring. This new system assists lenders in making more informed and appropriate decisions about which borrowers qualify for credit.

Both FICO Score 10 and 10 T BNPL will be available at no additional fee to lenders by fall 2025. With that, borrowers won't be able to hide should they miss a payment with a BNPL lender. Of course, this could also be beneficial if you have good payment habits and know when to check your credit because you're considering a larger purchase, like a car or home, and will need approved financing from a lender to get them. 

Even before FICO introduced software to address these loans, there were hidden downsides to using Buy Now, Pay Later services. Transunion has been keeping data on BNPL point-of-sale purchases since 2019, collaborating with three lenders who view the service as a new category of loan where a single borrower could have multiple unsecured loans in play. Thanks to softer credit checks for these sorts of purchases, more Americans have access to these kinds of loans, which could be disastrous for those with bad credit habits. This is particularly true of the holiday shopping season, when Buy Now, Pay Later apps could destroy holiday budgets. This reasoning underpins FICO's new software model, which will consolidate these individual loans into a predictive calculation for lenders.

The effects could be significant for a growing group of consumers. According to a 2025 survey commissioned by LendingTree, 49% of Americans say they've used BNPL loan services, with 60% admitting to carrying multiple loans at once. Millennials lead the charge in terms of BNPL usage, with 54% stating they're considering applying for a BNPL loan the following month, followed by 44% of Gen Zers and 39% of Gen Xers aged 45 to 60 years old. Unfortunately, 54% of BNPL loan customers admit to having missed a past payment, and 41% missed one just within the last year. One-quarter of BNPL users have even used these services to buy groceries, a substantial jump from the 14% who did so the year prior. Considering how much the average American spends on groceries, the dangers of poorly managed credit or the benefits of responsibly managed credit could both be easily realized.