FICO to include purchase now, and pay the subsequent data in new credit score models

Fico said on Monday that it will merge Buy now, pay data later (BNPL) In credit degrees with a high payment method in popularity.

Score 10 BNPL and Fico Score 10 T BNPL will be the first credit score of a leading credit registration provider to integrate this data. Fico said the scores are “great progress in registration of credit, which represents the increasing importance” of these loans in the ecosystem of the American credit.

“Buy now, and pay the subsequent loans plays an increasingly important role in consumer financial lives,” said Julie May, Vicar Vico Vice -President of B2B. By expanding the Fico Score 10 group with these new models, May said that the company “enables lenders to assess more accurate credit readiness, especially for consumers with the first credit experience through BNPL products.”

Here is the reason for the decrease in the degree of credit in the United States

Fico said it has used inputs from the largest lenders in the United States and that there is a wide consensus that the BNPL data was integrated into credit registration “is a decisive progress that allows lenders to make more enlightened and accurate decisions during its responsibility Expanding access to credit“

Fico said these scores will provide lenders a greater vision of consumer payment behaviors and will enable a more comprehensive vision of their credit preparedness.

Equipment services such as Afterpay, Klarna and PayPal have increased to the forefront as consumers who suffer from financial hardship are looking to extend their portfolios during It contradicts continuous inflationHigh interest rates and student loan payments, which resumed in October 2023 after a temporary stop due to the Covid-19 pandemic.

Services allow consumers to make purchases and pay for them in installments, often without any interest or fees. However, the interest is dealt with on some plans, and consumers can get late fees if they do not have enough money in their account To cover payments.

The expert says the risk of purchase now, and later pushed: “A ticket to increase spending.”

Traditionally, it was used for large ticket elements. However, this purchase now, the financing options later become common in the current economic environment, with an increasing number of consumers to benefit from them to pay the price of necessities such as food.

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Data from the April Lindingtree report shows that 25 % of these users used the service to buy groceries, up from 14 % a year ago.