BNPL Is Now on Your Credit Score: How to Use Buy‑Now‑Pay‑Later Smartly in 2025

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BNPL loans will affect your credit for the first time. Learn what this means for Gen Z users—how to build credit and avoid damage with smart BNPL habits.

🟦 BNPL Is Now on Your Credit Score: How to Use It Without Damage (2025)

💡 Why It Matters

As of Fall 2025, FICO will include BNPL (Buy Now, Pay Later) data in its credit scoring models. With over 90 million Americans using BNPL and 41% reporting late payments, this change significantly affects Gen Z—the demographic that engages most heavily with these services.

🔍 What’s Changing

  • FICO is rolling out new scores (FICO 10 BNPL & FICO 10 T BNPL) sourced from Affirm, providing deeper insight into repayment behavior.
  • Affirm and Klarna already report BNPL on-time & overdue payment data to Experian and TransUnion.
  • Although timely payments may help your score, missed ones can hurt—41% of users paid late in the past year.

⚠️ Why Gen Z Is at Risk

  • High BNPL usage: ~59% of Gen Z use these services, compared with 40–50% of older groups.
  • Multiple active loans: 71% of Gen Z users have stacked multiple BNPL plans.
  • Misconceptions: 62% of users incorrectly believe on-time BNPL payments boost credit—when faults may actually harm it.

✅ How to Use BNPL Responsibly

  1. Avoid stacking loans
    Keep BNPL use to 1–2 plans to minimize risk and complexity.
  2. Set up autopay
    Ensure every BNPL due date is covered to prevent even short delays.
  3. Track repayment timeline
    Monitor open BNPL and regularly review your credit report to identify reporting entries.
  4. Use as credit-builder (cautiously)
    When paid on-time and reported, BNPL can help build credit—but only if you manage responsibly.
  5. Treat defaults like credit cards
    Late BNPL payments can drop your FICO—so treat these obligations with the same urgency as credit card dues.

📊 BNPL Facts Snapshot

MetricValue
US BNPL users (2025)~90 million
% BNPL users late on payment41%
% Gen Z BNPL users misinformed62% believe on-time helps credit
% Gen Z with multiple BNPL loans71%

🤔 FAQs

Q1. Will paying BNPL on time help my credit?
It could—once fully reported—but only for some. Focus on avoiding late payments above all

Q2. Can I remove BNPL from my credit report?
Not directly—but you can close accounts and pay them in full. If a loan is overdue, work with lender to resolve before collections.

Q3. Should I switch to credit cards instead?
Credit cards offer clearer credit-building benefits and protections, but carry interest. If you manage it well, they may be a better long-term option.

✅ Final Takeaway

BNPL is entering the traditional credit infrastructure—and Gen Z is most exposed. By automating payments, sticking to few plans, and checking credit reports, you can go from risk to opportunity—using BNPL to build credit, not break it.

👉 Next steps: Check your BNPL accounts today, set up autopay, and build one positive tradeline this month!

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