FICO is adding buy now, pay later (BNPL) data to two of its scoring models this fall, aiming to offer
lenders a more complete view of consumer debt behavior. But with this added visibility comes a need
for awareness — and borrower education.

Why this matters

• Payment history is the most heavily weighted factor in a FICO score.
•  A new LendingTree report found 43% of BNPL users have made late payments, up 34% in just
  one year.
• 25% are now using BNPL for everyday expenses like groceries — up from 14% the year prior.

While score impact is typically within 10 points for most, missed payments can significantly
damage emerging credit files.These trends suggest many consumers are relying on BNPL not just for convenience — but to close
income gaps. As lenders, this is a unique opportunity to educate borrowers on how installment-based
spending affects their credit health.

Takeaway: Encourage responsible use of BNPL products and help borrowers understand that what once
felt “invisible” now plays a direct role in their credit profile — for better or worse. This is only one of the challenges of meeting borrower mortgage need.

Let us know if you have questions or if you have gaps in your mortgage offering that we can help fill!

info@gooimortgage.com | 515.313.0590