Buy Now, Pay Later (BNPL) has become a huge part of personal finance in recent years. With the rise of apps and services offering short-term, interest-free installment plans, more people are using BNPL to manage everyday expenses. But until recently, these payments haven’t shown up clearly on credit reports—leaving a gap in how lenders assess your financial health. Now, FICO (the global credit scoring giant) is changing that with the introduction of FICO Score 10 BNPL and FICO Score 10 T BNPL.
What Are BNPL Scores, and Why the Shift?
Traditionally, credit scores are built around loans, credit cards, and longer-term finance products. BNPL is different—it’s often smaller in value, doesn’t always charge interest, and typically isn’t reported to credit bureaus in the same way as credit card debt. With millions using BNPL for online shopping or at checkout, lenders need better tools to assess risk and creditworthiness for these consumers.
Enter the FICO Score 10 BNPL and its trended variant, 10 T BNPL. These new scores are designed to:
- Include BNPL activity—If your BNPL payments are reported, they help shape your credit profile.
- Give lenders a more complete picture—Especially important if you’re new to credit and use BNPL as your primary borrowing tool.
- Promote responsible BNPL use—As positive payment history could impact your score.
How FICO Score 10 BNPL Works
FICO Score 10 BNPL is a credit scoring model that integrates BNPL account data, looking at how you use and repay these installments alongside traditional credit products. This means recurring BNPL payments or missed deadlines could influence your overall credit score if your BNPL lender shares data with bureaus.
The 10 T BNPL model goes a step further. It’s a ‘trended’ score—analyzing payment behaviors over time rather than just a snapshot. For example:
- Are you consistently using BNPL or did you just try it once?
- Do you often miss payments or pay off BNPL loans on time?
- Is your overall BNPL balance rising or falling?
This trended analysis helps lenders see patterns and predict how you might handle future borrowing.
Why Should You Care About BNPL Scores?
For Indian consumers, the impact may be just getting started, as BNPL services rapidly grow in popularity. Over time, more BNPL providers may start reporting your activity, making it part of your official credit record—right along with credit cards and loans.
- Building credit: If you don’t have a credit card, positive BNPL history could help build your score—useful when you want to apply for a credit card online.
- Responsible borrowing matters: Missing a BNPL payment may now harm your credit score, so treat these plans like any other loan.
- Broader access to lending: If you have thin or new-to-credit files, showing responsible BNPL use can mean better credit card offers in the future.
FICO Score 10 BNPL vs. Traditional Credit Scores
| Feature | Traditional FICO Score | FICO Score 10 BNPL/10 T BNPL |
|---|---|---|
| Includes BNPL Payments? | No | Yes, if reported |
| Analyzes Recent Trends? | Limited | Yes (trended in 10 T BNPL) |
| Used by Lenders For? | Credit Cards, Loans | Credit Cards, Loans, BNPL |
| Potential for New-to-Credit | Low | High (if BNPL data exists) |
Potential Impact on Your Credit Profile
This change brings new opportunities—and risks. Here’s how FICO’s new BNPL scores may impact you, depending on your profile:
1. New-to-credit consumers
If you have little or no traditional credit, your responsible BNPL usage can help you establish a score faster than before. That’s a plus when you want to compare credit cards or qualify for a loan.
2. Overextending on BNPL
Making too many BNPL purchases or missing repayments may hurt your score. BNPL can feel easy, but just like traditional credit, falling behind on payments will count against you.
3. Building a strong profile
If you use BNPL sparingly and always pay on time, your profile can benefit. Paired with on-time loan and credit card payments, this could open up better credit card offers as lenders see you managing varied forms of credit well.
How Do BNPL Payments Get Reported?
Everything depends on whether your BNPL provider chooses to report data to credit bureaus. In some countries, more providers are starting to do so. In India, this trend is new but growing. Watch for updates from your provider, and check your credit report regularly to see if BNPL accounts appear.
To learn more about how credit scores are built and what affects them, visit our blog for the latest credit score tips and news.
Tips to Use BNPL Responsibly and Protect Your Score
- Pay on time: Treat BNPL like any loan. Set reminders to avoid missed payments.
- Limit active BNPL plans: Too many outstanding plans may suggest risk to lenders.
- Monitor your credit: Check your credit score regularly for any new accounts or changes.
- Use BNPL only for planned purchases: Avoid impulse shopping just because deferment is available.
- Understand the terms: Check interest, fees, and penalties before using any new BNPL service.
Frequently Asked Questions (FAQs) about FICO’s New BNPL Scores
How will I know if my BNPL usage is affecting my credit score?
If your BNPL provider reports your activity to a credit bureau, you’ll see these accounts on your credit report. Using a credit monitoring service or checking your report regularly can help you spot changes.
Will using BNPL improve my chances for credit card approval?
If reported, positive BNPL history can help build your credit record—especially if you have a thin file. This increases your chances of qualifying for zero annual fee cards and other entry-level products.
Does missing a BNPL payment hurt my score as much as missing a credit card payment?
It can, if the default is reported to the credit bureau. Any missed payment hurts your score—so it pays to stay current.
Are Indian BNPL providers reporting to bureaus now?
This practice is in its early stages in India, but major players are starting to report customer data. Expect more BNPL usage to appear in credit profiles soon.
What’s the main difference between FICO Score 10 BNPL and 10 T BNPL?
10 BNPL considers the presence and payment history of BNPL accounts. The trended 10 T BNPL variant adds deeper analysis over time, evaluating patterns and consistency, not just a single snapshot.
Final Thoughts: Keep Your Credit Healthy in a BNPL World
BNPL services are here to stay, and FICO’s new scores mean your short-term financing choices now matter more than ever. The same timeless rules apply—borrow what you can repay, stay organized, and build a positive record regardless of payment method.
Want to know which credit card is right for you—no matter your current score or history? Use FinWitty’s Find My Card tool, or browse our latest reviews and tips on our blog. Stay smart, stay informed—and make every payment count!