Does Buy Now Pay Later Affect Your Credit Score in 2026?

Buy now, pay later (BNPL) loans have become a popular way to finance purchases, allowing shoppers to split payments into smaller installments over time. Starting in fall 2025, FICO began factoring certain BNPL loans into its credit scoring models. Here's how BNPL may affect your credit score.

Key Takeaways

• BNPL loans are now factored into newer FICO scoring models. FICO launched two updated scores in fall 2025 that include BNPL payment history, though most lenders still use older models that do not.

• On-time payments can help your score, but missed payments can hurt it. Even a small missed payment can have a negative impact once it is included in your credit file.

• Having too many active BNPL plans with high balances can work against you. It can signal financial strain and weigh down your score in newer models.

• BNPL is still a useful tool if you use it carefully. Setting up autopay and avoiding overextending your budget are the easiest ways to stay on track.

Summary generated by AI, verified by MoneyLion editors

What Is BNPL?

BNPL companies offer installment loans that allow you to pay for purchases over time, instead of up front. BNPL loans are popular for two main reasons:

• They don’t charge interest: BNPL loans are usually interest-free, as long as you pay within the required time frame.

• They’re convenient: Most BNPL providers offer loans right at checkout, making it easy to finance big purchases.

Here's how it typically works:

You want to buy a new hoodie for $90. At checkout, you see the option to split the total into four bi-weekly payments of $22.50. You pay no interest or fees as long as you make payments on time.

Which Credit Scores Currently Include BNPL?

Credit scores are calculated using different models, and each model treats BNPL loans differently. Here's a side-by-side look at a few models:

What BNPL Activity Helps or Hurts Your Credit?

Whether BNPL helps or hurts your credit depends largely on how you manage it.

It May Help Your Credit Score If

• You make on-time payments consistently.

• You have paid off BNPL completely.

It May Hurt Your Credit Score If

• You have fallen behind in payments.

• You have several active BNPL loans with high balances.

Why Is a FICO Score Important?

Your FICO score can have a direct impact on your borrowing costs. Higher scores typically qualify for lower annual percentage rates (APRs) and better loan terms, while lower scores may result in higher rates and more limited options.

👉 Find Out: What’s a Good Credit Score for My Age?

How To Use BNPL Responsibly

If you’re an avid BNPL user, don’t worry — the fact that these loans will now impact your credit score doesn’t mean that you have to stop using them. BNPL services can still be a valuable way to get interest-free financing. You just want to be extra careful that you’re using these services responsibly now that they can influence your credit score.

Here are five tips to keep in mind:

1. Do your best to never miss a payment: Missing a payment on your loans is one of the quickest ways to ding your credit, even if that missed payment was only $10. Setting up autopay or a calendar alert can help you remember when payments are due and avoid forgetting about them.

2. Avoid overextending your budget: BNPL loans make it seem like you’re spending less money than you really are, making it easy to overspend. If you find yourself saying “I’ll figure it out later” as you hit "Buy," then you may want to pump the brakes and reconsider.

3. Monitor your credit: Make sure you pull your credit reports to make sure there are no errors. You can pull your credit report for free every 12 months.

4. Limit active BNPL plans: You don’t want to get trapped in a debt cycle by having too many active BNPL plans.

5. Explore alternative payment options: BNPL loans are super convenient, but they’re not the only way to pay for things.

Better Alternatives to BNPL

BNPL can be convenient, but it’s not the only way to spread out costs or access financing. Here are alternatives you should consider:

• Debit cards or cash: This is the best option because you don’t incur any debt, and there won’t be any impact on your credit score.

• Earned wage access (EWA): This option, if your employer offers it, will tap into wages you’ve already earned before your payday. You wont pay interest and it will not impact your credit score.

• Personal loans: You’ll likely have a fixed repayment schedule, and if you pay on time, your activity will be reported to the credit bureaus.

• Credit cards: These are flexible spending and reward opportunities. If you can pay in full, it will count toward your credit score.

Final Take

• BNPL is a loan that allows you to break up a loan amount into four fixed payments. It can work well if you can pay off the amount completely.

• Since the fall of 2025, FICO has been including BNPL activity in your credit score, but the use isn’t widespread yet.

• Missing payments on your BNPL loans could impact your credit score.

• There are alternatives to BNPL loans — cash, EWA, credit cards and personal loans.

FAQs

Which BNPL services report to credit bureaus?

Most BNPL don’t report to credit bureaus. However, Affirm and Klarna do report monthly installment loans to Experian or TransUnion.

Does BNPL build credit?

Not usually. BNPL providers don’t report to the credit bureaus.

What happens if you miss a BNPL payment?

If your account goes delinquent, the BNPL provider will refer your account to a collection agency.

Do all FICO scores include BNPL?

FICO 8 and FICO 9 don’t include BNPL payments.

Is BNPL currently included in VantageScore models?

Yes, in newer versions of VantageScores, BNPL payments are included.

Key Terms

• BNPL: A short-term financing option that splits a purchase into smaller installments, usually four payments made over several weeks. Most BNPL plans are interest-free if paid on time.

• FICO score: A three-digit credit score used by most lenders to evaluate a borrower's creditworthiness. Scores range from 300 to 850, with higher scores unlocking better loan terms and lower interest rates.

• Payment history: The record of whether you have paid your bills on time. It is the largest factor in your FICO score and is now being tracked for BNPL activity in newer scoring models.

• Credit bureau: One of three agencies — Experian, Equifax and TransUnion — that collect consumer credit data. Most BNPL providers do not report to all three, though Affirm and Klarna report some activity to Experian or TransUnion.

• EWA: A financial tool that lets workers access a portion of their already-earned income before payday. It carries no interest and has no impact on your credit score.

Summary generated by AI, verified by MoneyLion editors

Sources

• Consumer Financial Protection Bureau. 2022. "Buy Now, Pay Later: Market trends and consumer impacts."

• FICO. 2025. "FICO Unveils Groundbreaking Credit Scores That Incorporate Buy Now, Pay Later Data."

• Consumer Financial Protection Bureau. 2025. "The Buy Now, Pay Later Market."

Theodore Stavetski contributed to the reporting for this article.