Does Buy Now, Pay Later Affect Your Credit Score? Your Guide

Buy now, pay later (BNPL) loans are starting to appear in some credit scoring models. That means missed payments could impact your credit score much like other forms of debt. As BNPL financing becomes a more common way to split purchases into smaller amounts, understanding how it may affect your credit is more important than ever.

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.

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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 the buy now, pay later process typically works:

You want to buy a new hoodie for $90. At checkout, you see the option to split the total into four biweekly 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 how the major models compare.

Keep in Mind

• Most lenders still rely on older credit scoring models, so BNPL may not affect every lending decision today.

• FICO Score 8 is still primarily used by mortgage, auto and major credit card lenders.

• Adoption of FICO Score 10T suite — including the new BNPL models — is expected to increase over the next several years.

Why Your Free Credit Score May Differ from a Lender's FICO Score

Some consumer tools may show your VantageScore 4.0 and this includes BNPL data and rental payment history. FICO Score 8, which is pulled by most lenders, doesn’t include BNPL data or rental payment history. This is why these scores may differ by several points.

BNPL Provider Reporting Status

Not every BNPL provider reports the same information to the credit bureaus. Here's how some of the largest providers currently handle credit reporting.

Note: Reporting policies change frequently and should be verified directly with each provider.

Soft vs. Hard Pull: What Actually Impacts Your Score

Soft inquiries on your credit don’t impact your score, while hard pulls do cause your credit score to dip. Generally most BNPL activity doesn’t result in a hard pull. Applying for a credit card, a loan or mortgage will always initiate a hard pull on your credit. This activity will cause your score to dip temporarily.

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 credit 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 at AnnualCreditReport.com.

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 won't 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.

How To Protect Your Credit While Using BNPL

You still want to be mindful of your credit while using BNPL providers. Here’s how you can take measures to ensure you’re still keeping your credit as your main priority:

• Set up autopay for every BNPL plan: Set it and forget it is a good idea since it prevents you from making any late payments.

• Keep no more than two to three BNPL plans at one time: You want to keep your debt-to-income (DTI) ratio under 36%. The more plans you have, the more likely you’ll go beyond the acceptable threshold.

• Before signing up for a BNPL, check whether they report to Experian, TransUnion or Equifax: Many BNPLs don’t report timely payments, but most will let the credit bureaus know if you’ve missed a payment.

• Select to monitor your credit report: You can elect to monitor your credit report for free in most cases.

• Pay off balances: You want to pay off balances before the promotional period ends to avoid deferred interest.

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 providers report to credit bureaus?

Affirm reports installment loan activity to credit bureaus. Sezzle reports timely payments through its Sezzle Up feature. Most of the other BNPL providers will report missed payments and collection activity to the credit bureaus.

Does BNPL build credit?

Not usually, but that's starting to change. Many BNPL providers don’t report to the credit bureaus but newer FICO score models may be used by more lenders soon.

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.

Does BNPL affect your credit score?

Most lenders use FICO Score 8 which doesn’t reflect BNPL activity. Newer models — including VantageScore 4.0 and FICO Score 10 BNPL and 10 T BNPL scores — can include BNPL activity, so it may affect your score when they're used.

Does Afterpay affect your credit score?

Afterpay doesn’t report account activity to the credit bureaus.

Does Klarna affect your credit score?

Klarna doesn’t report positive data to the credit bureaus. However, if you have missed payments, that will be reported to the credit bureaus and can impact your score in a negative way.

Does Affirm affect your credit score?

Affirm can impact your credit score since they report account data to Experian and TransUnion.

Will using BNPL hurt my chances of getting a mortgage?

It can impact your chances of getting a mortgage. Underwriters will look at your DTI ratio and take a look at your open BNPL loans. Also, if you’ve missed payments and have collection activity, that can impact your chances of securing a mortgage.

Does applying for BNPL show up on a credit check?

No, generally BNPL doesn’t appear on your credit report since it is considered a soft pull.

What is FICO Score 10T and how is it different from FICO Score 8?

FICO Score 10T is the most recent scoring model, but it doesn't capture BNPL data on its own. To gather BNPL data, FICO released two separate scores — FICO Score 10 BNPL and FICO Score 10 T BNPL. FICO Score 8, the model most lenders still use, doesn't factor in BNPL data at all.

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."

• Consumer Financial Protection Bureau. 2024. "What is a Buy Now, Pay Later (BNPL) loan?"

Theodore Stavetski contributed to the reporting for this article.

Information is accurate as of July 13, 2026.