If you’ve been enjoying the freedom of Buy Now, Pay Later (BNPL) services, you’ve been basking in a period of little to no consequences for missed payments.
BNPL lets you spread out the cost of a purchase over multiple payments. For many Americans, this is an appealing way to manage expenses, especially as inflation squeezes household budgets.
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As BNPL becomes more common, it’s quickly turning into an accepted credit option. In fact, 86% of Americans say they trust BNPL as a payment method, and three out of four users say they trust BNPL services more than credit cards. (1)
Still, 44% of BNPL users worry about how these loans could affect their credit score — and with good reason. Credit scoring agencies are beginning to factor BNPL payment history into their models.
FICO has announced that it will begin including BNPL data into its scoring models this fall. (2) Experian also said it will add data from Affirm, a BNPL provider, into its framework this year. (3) So who needs to worry about this shift in credit score calculations?
Who uses BNPL loans?
About 30% of Americans have used a BNPL service. (4) In 2024, an estimated 86.5 million Americans took advantage of one, up from 49.2 million in 2021. By 2025, research firm eMarketer projects that 91.5 million U.S. consumers will use a BNPL loan.
Many turn to BNPL because of the sheer convenience. These services are often built right into online check-outs, so spreading out payments takes just a few clicks. Others prefer BNPL over credit cards because they can avoid a credit check or interest charges.
The average BNPL loan is only about $135, but juggling multiple loans at once can make repayment tricky. A LendingTree survey found that 54% of BNPL users have made at least one late payment.
With FICO now planning to incorporate BNPL activity into its credit scores, late payments could drag credit scores down in the future. While FICO hasn’t defined what it will measure, payment history is a likely factor — and that’s where many users stumble.
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How to use BNPL loans responsibly
FICO’s move doesn’t mean you should never use BNPL again. But it does mean you need to be responsible.
FICO scores range from 300 to 850 and are based on five contributing factors:
- Payment history: How consistent you have been with your credit payments.
- Credit utilization: How much of your allotted credit you’ve used.
- Credit length: The length of time you’ve had credit.
- Credit mix: The number of different types of credit that you have on your report.
- Hard inquiries: How many times a lender has pulled up your credit history to approve a loan application.
With that in mind, you can adapt to the new FICO terms by limiting how often you rely on BNPL loans. A Bankrate survey found that 24% of users admitted to spending more than they should have, and 15% said they regretted their purchases. (5)
If you’re considering BNPL for nonessential purchases, proceed with caution. For example, two-thirds of BNPL users said they’d consider using it for food delivery. (6) While there’s nothing wrong with the occasional takeout meal, use the loan sparingly.
The most responsible move is to pay off your BNPL loans on time and in full. If you already have outstanding balances, paying them down as quickly as possible is the best way to protect your credit score.
If the alternative is putting the purchase on a high-interest credit card, a BNPL plan could be the more affordable route — if you use it responsibly.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Partner Centric (1); FICO (2); Experian (3); Capital One (4); Bankrate (5); Lending Tree (6).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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