August 6, 2025
Top Buy Now, Pay Later companies state they will not cooperate with FICO’s plan to include BNPL data into its credit score considerations.
Klarna and Afterpay will not cooperate with new FICO data policies if their consumers are penalized.
The two platforms have stated that they refuse to cooperate with FICO’s new initiative to include Buy Now, Pay Later (BNPL) loan data into its credit scoring consideration, The Wall Street Journal reported. Both Klarna and Afterpay allow consumers to purchase goods by paying in installments. Thus, the option to defer full payment heavily benefits low-credit, no-credit, and lower-income consumers. Adverse effects on the company’s consumer base could lead to a decline in usage.
In a statement to PYMNTS, a Klarna spokesperson confirmed the company’s goal to protect its customers.
“For years, we have supported credit reporting that benefits consumers — that’s why we share BNPL data in the U.K. and report our term loans in the U.S., making it visible to consumers but excluded from credit scores,” the statement said. “While the U.S. credit reporting framework doesn’t reflect how short-term BNPL products are used, we look forward to a system where these products can contribute positively to consumers’ credit standing.”
On July 23, BLACK ENTERPRISE reported on the initial change to the FICO terms. The company frames the change as a benefit to consumers. FICO Vice President Julie May states that the change to FICO Score 10 BNPL and 10T BNPL will provide “inclusion” for low-credit borrowers.
“Buy Now, Pay Later loans are playing an increasingly important role in consumers’ financial lives,” said May. “By expanding our FICO Score 10 Suite with new models designed to incorporate BNPL data, we’re enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products. This innovation also supports our mission to expand financial inclusion by helping more consumers gain access to credit.”
The change to the policy will consolidate all BNPL purchases together as one loan. Timely payments can help boost consumer credit scores. Missing a payment will negatively impact your payment history.
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