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.
Does buy now pay later affect your credit score?
Yes, it can. 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.
Does Buy Now, Pay Later (BNPL) affect your credit score?
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 to build credit without 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.
Conclusion
BNPL can affect your credit score, but for most people the impact is small, and the real risk is on the downside. On-time payments are unlikely to move the needle much, while missed payments can cause real damage as more providers start reporting to the bureaus.
If building credit is your goal, it's worth using tools that are actually designed for it. Start with the basics: make on-time payments, keep utilization low, and pick up a credit-building product that reports to all three bureaus.
For a faster, more reliable path to better credit, try Kikoff.
With tools like rent reporting, bill reporting, and a credit account that reports to Equifax, Experian, and TransUnion, Kikoff is built to help you build credit the right way, for just $5 a month.
Frequently Asked Questions
About the editor
