Buy Now, Pay Later (BNPL) has quickly become a go-to way to shop, built into checkout screens, featured in food delivery apps, and often seen as a quick alternative to credit cards. It’s fast, flexible, and typically interest-free. But as BNPL grows in popularity, it’s also starting to show up in a new place: your credit report.
With the rollout of FICO Score 10 BNPL and FICO Score 10T BNPL, some BNPL loans, especially those from major providers, may now be reported to the credit bureaus. That means both on-time and missed payments could start influencing your credit score.
So naturally, more people are asking: If BNPL is being reported, can it help me build credit, similar to how using credit cards or loans can? After all, if it shows up on your credit report, shouldn’t it count toward building a score?
So… Can BNPL help me build credit?
Yes and no. While consistent, on-time BNPL payments can have a positive effect, the impact is usually small. A joint study by FICO and Affirm found that for most people, including BNPL data led to a score change of ±10 points or less. That’s barely noticeable, especially compared to more traditional credit tools.
What matters more is what happens when payments aren’t made on time. BNPL’s ease and convenience can sometimes lead to overuse making it easy to fall behind. A recent AP investigation found that one-third of BNPL users say they’ve missed a payment, which can lead to late fees, collection activity, and now, potential credit score damage as BNPL loans start showing up in more credit reports.
How can I build credit more effectively than relying on BNPL?
While having on-time BNPL payments might give your score a small bump, it’s not the most effective path if you’re looking to build long-term credit. If that’s your goal, it’s better to start with tools designed specifically for it.
Here are a few more options if you’re just starting out:
- Secured or student credit cards
These work like traditional credit cards but are easier to qualify for, especially if you’re new to credit. Use them for small, manageable purchases and pay them off in full each month to build payment history and keep your credit utilization low. - Report what you’re already paying
Some services allow you to report rent, phone, or utility payments to the credit bureaus. That means everyday bills you’re already managing could start working in your favor. - Credit Builder Loans Unlike traditional loans, these don’t give you money upfront. Instead, you make monthly payments toward a locked savings account, and the lender reports your on-time payments to the credit bureaus. Once you’ve made all your payments, you get the money, plus a positive payment history.
Tip: Local credit unions often offer credit builder loans with low fees, and can be a great place to start if you want personal guidance
- Credit-building tools
Tools like Kikoff are designed to help people start or rebuild credit. For just $5 a month, you get access to smart tools like rent and bill reporting, AI debt negotiation, and a clear credit dashboard, all with no credit check, no interest, and no hidden fees. Plus, we report to all three major credit bureaus so your progress really counts.
Learn how you can start building credit with Kikoff—just $5/month, no credit checks, hidden fees, or interest.
