FICO to launch credit scores incorporating buy now, pay later data

Published 23/06/2025, 13:10
FICO to launch credit scores incorporating buy now, pay later data

NEW YORK - FICO (NYSE: FICO), the $43.93 billion market cap credit scoring giant with impressive gross profit margins of 80.83%, announced Monday it will introduce two new credit scoring models that incorporate buy now, pay later (BNPL) loan data, marking the first such offering from a major credit scoring provider. According to InvestingPro analysis, FICO maintains a "GREAT" financial health score, positioning it well for this strategic expansion.

The FICO Score 10 BNPL and FICO Score 10 T BNPL models are scheduled to become available in Fall 2025, according to the company’s press release statement.

The new scores aim to provide lenders with more comprehensive visibility into consumers’ repayment behaviors by including BNPL transactions alongside traditional credit data. FICO developed a method to aggregate multiple BNPL loans when calculating certain variables, addressing the tendency for consumers to open numerous BNPL loans in short timeframes.

"Buy Now, Pay Later loans are playing an increasingly important role in consumers’ financial lives," said Julie May, vice president and general manager of B2B Scores at FICO.

FICO consulted with major U.S. lenders during development, who supported integrating BNPL data into credit scoring models. The company indicates this approach may increase credit scores for some BNPL borrowers.

The new scoring models will initially be offered alongside existing FICO Score versions at no additional fee from FICO. This allows lenders to evaluate the BNPL-enhanced scores while continuing to use current models.

FICO’s research included a year-long study on BNPL data to determine the most effective approach for incorporating these increasingly common short-term financing arrangements into credit risk assessment.

In other recent news, Fair Isaac Corporation has been active with several notable developments. The company has priced $1.5 billion in senior notes due in 2033 with a 6.000% yield, aimed at repaying existing debts and funding general corporate purposes. BofA Securities has raised its price target for Fair Isaac to $3,700, maintaining a Buy rating, following insights gained from the FICO World event, which highlighted the company’s growth prospects. Similarly, Jefferies increased its price target to $2,500, also keeping a Buy rating, and noted advancements in Fair Isaac’s scoring business and software platform. Baird upgraded Fair Isaac’s stock rating from Neutral to Outperform, citing a favorable risk/reward scenario despite regulatory risks. Concerns arose from potential changes in the mortgage credit scoring landscape, notably the privatization of Government-Sponsored Enterprises, which could impact FICO’s volumes. However, RBC Capital maintains a positive outlook, suggesting that FICO’s pricing power and industry standard status remain intact. These developments reflect ongoing confidence in Fair Isaac’s market position and future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.