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For aspiring homeowners, the key takeaway is clear: while using Buy Now, Pay Later (BNPL) services is unlikely to impact your mortgage application in the immediate future, a major shift in how these loans are reported to credit bureaus means financial habits are becoming more visible to lenders. Starting in 2025, new FICO scoring models will begin incorporating BNPL data, moving it from a lending "blind spot" to a factor in assessing creditworthiness. For now, mortgage lenders primarily rely on older scoring models, but this change signals that how you manage BNPL could eventually influence loan approval and interest rates.
Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to split a purchase into smaller, typically interest-free, installment payments. Unlike a credit card or traditional loan, most BNPL activity has not historically been reported to the major credit bureaus (Equifax, Experian, and TransUnion). This created a gap in lenders' visibility into a borrower's total debt obligations.
This is changing with the introduction of new FICO scoring models, FICO 10 BNPL and FICO 10T BNPL. These models are designed to include BNPL payment history, giving mortgage lenders a more complete picture of a potential borrower's financial behavior. According to a statement from FICO, this innovation aims to help lenders "more accurately evaluate credit readiness," particularly for newer credit users.
The short answer is: probably not in the near term. Upgrading the systems used for mortgage lending is a slow, highly regulated process. Most mortgage lenders still use older scoring models like FICO 8.
"Mortgage lenders still rely on older scoring models such as FICO 8 or even earlier versions," explains Cynthia Chen, founder and CEO of Kikoff, a credit-building company. "That means most underwriters reviewing mortgage applications this year will not see BNPL data."
This is significant because your credit score—a numerical representation of your credit risk ranging from 300 (poor) to 850 (excellent)—directly affects both your mortgage qualification and the interest rate you're offered. While the new models are rolling out, their adoption by the conservative mortgage industry will likely take years, not months.
The initial data suggests the impact for most users will be minimal. Before releasing the new models, FICO conducted a study with a BNPL provider and found that including BNPL data shifted scores by fewer than 10 points for over 85% of customers. The effect on the remaining 15% was not disclosed.
However, the risk lies in mismanagement. A late or missed BNPL payment can now damage your credit score the same way a missed credit card payment would. This is particularly important given that a September 2025 LendingTree survey found 41% of BNPL users reported missing a payment in the past year. For homebuyers, the takeaway is caution, not panic. Responsible use likely won't help your score significantly, but irresponsible use can certainly harm it.
The fallout from missed BNPL payments stands to hit newer borrowers hardest. Individuals with thin credit files—those with limited credit history—have fewer positive accounts to offset a negative mark like a late payment. This demographic often includes younger buyers, who are also the heaviest users of BNPL services and are already navigating high home prices and student loan debt.
For those planning to buy a home in the next one to two years, the best strategy remains focused on foundational credit health. BNPL is entering the credit conversation, but it is not yet shaping it for mortgage lending.
If you’re preparing for a mortgage application, prioritize these proven credit-building habits:
BNPL can be a helpful tool for managing cash flow, but it is not a shortcut to mortgage readiness. For now, solid habits with traditional credit products will carry far more weight when it's time to apply for a home loan.
