FICO to incorporate buy-now-pay-later loans into credit scores
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Re: FICO to incorporate buy-now-pay-later loans into credit scores
#2Credit scores will tank further
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#3Credit scores will tank further
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Re: FICO to incorporate buy-now-pay-later loans into credit scores
#4thats interesting. I was always wondering what the hustle was, guess that was it- it was outside of the credit system
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#5thats interesting. I was always wondering what the hustle was, guess that was it- it was outside of the credit system
It already shows up when mortgage lenders do their checks, AIUI.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#6This would probably only affect the people with the worst credit scores I imagine. I just don't see a ton of 800+ credit score people deciding to spend 5 payments of $20 for a pair of $80 shoes.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#7What's interesting here is that normally BNPL only does a soft check.
I wonder if this is going to change.
Equally, I find it weird that companies can ding your credit for not paying but have no obligation to report on-time payments. It should be both or none.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#8It probably makes sense to do so. Not that I condone the FICO hustle. But small loans can add up quickly and delinquencies need to be measured for financial market stability.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#9Credit scores will tank further
Why?
"The industry has long believed that consumers using BNPL responsibly should result in positive credit scores, as the majority of users are paying back in full and on time."
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#10thats interesting. I was always wondering what the hustle was, guess that was it- it was outside of the credit system
The hustle is mostly just getting merchants to eat bigger discounts in hope of selling more volume. Instead of eating ~3% interchange on a credit card, merchants eat ~6% subsidizing short-term BNPL loans.