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  • Frank Tian

BNPL impact on FICO (1)

BNPL begins to show up on credit reports.

What is the impact on the FICO score?

FICO gives the latest analysis. 👇


Using Experian data from a major BNPL provider in the US,

FICO’s study shows that the overall score will decrease. ⬇️


The decrease is across three main segments:

  • Derog

  • Thin/New-to-credit

  • Thick/Mature

In a separate study by Equifax/FICO,

A subprime population saw a strong FICO boost ⬆️

From the inclusion of the BNPL line of credit.


Each portfolio is different.

There are also many scores.

Always conduct your own analysis.


The following determines BNPL impact, according to FICO:

  • BNPL reported as revolving vs. installment loan

  • Where the consumer is at along the credit journey

  • Payment behavior on BNPL (this makes sense, right?)

More data is available for credit risk and business analytics.

From alternative credit data to BNPL and open banking.


FICO's analysis: BNPL in Credit Reports


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