BNPL Could Now Cost You More Than Just Interest: FICO’s Watching

If you’re someone who loves the convenience of “Buy Now, Pay Later” (BNPL) apps—like Klarna, Afterpay, or Affirm—you’re not alone. You see, these services have exploded in popularity lately, especially for online shoppers who like to split payments into more manageable chunks. It’s flexible, it feels modern, and let’s be real: who doesn’t love a little financial breathing room?

But if you’re missing those payments—or even cutting it close—you might want to take a pause.

Because now, FICO is changing the game.

FICO, the company behind the credit score most lenders use, is introducing a new credit scoring model that will factor in your BNPL behavior. Yes, that means those little $40 shoes you thought you could split into four stress-free payments? If you miss a payment, it could come back to haunt your credit score.

T

his is a big shift. Until recently, most BNPL activity wasn’t even reported to credit bureaus, meaning it wasn’t impacting your credit one way or the other. But FICO’s move signals a turning point. Missed BNPL payments could now hurt your credit score—the same score that determines whether you get approved for a mortgage, a car loan, or even a new credit card.

If you're someone who’s been using BNPL like a tool rather than a trap, this might not be a huge deal. Pay on time, stay organized, and you could actually build a more complete picture of responsible borrowing. But if you’re juggling too many installments or forgetting due dates? That’s where the trouble starts.

You see, FICO’s new model is trying to keep up with how people are really spending money today. Traditional credit cards aren’t the only way we borrow anymore. So this new model could actually make scores more accurate—just not necessarily more forgiving.

Here’s what you can do if you’re concerned:

• Treat BNPL like credit – Because that’s what it is now, at least in the eyes of FICO.

• Set reminders for payments – Missing one could have long-term consequences.

• Keep track of how many BNPL plans you’ve opened – Too many could make you look risky.

• Don’t overuse them – Just because it doesn’t feel like debt doesn’t mean it isn’t.

At the end of the day, this change is a reminder that no form of borrowing is truly invisible anymore. So if you’re leaning on BNPL to stretch your paycheck, make sure you're keeping those payments tight. Your future self—and your credit score—will thank you.