Klarna giving Buyers Karma with FICO 10 Score

[Yinny]

Buy Now Pay Later Loans to Factor in Newer Credit Score Models

How well — or how poorly — Americans are managing their Buy Now, Pay Later loans soon could be reflected in their credit scores.

FICO plans to launch a suite of credit scores later this year that incorporate BNPL data, providing lenders a window into what’s been a big blind spot: consumers’ repayment behavior on these increasingly popular installment loans.

BNPL loans can serve as an alternative to credit cards and are used by consumers who are seeking more flexible payment options, who want to overcome a tight financial spot, or who are looking to smooth out some bigger transactions to better meet their budgets.

For some consumers, the inclusion of BNPL data in the company’s FICO Score 10 and FICO Score 10 T models could help serve as a credit-builder — or even a credit buster.

“A lot of BNPL users are often young people who don’t have long credit histories,” Ted Rossman, chief credit analyst at Bankrate, told CNN in an interview. “That’s the more optimistic use case, that these people could be brought into the credit system. And if they use Buy Now, Pay Later responsibly, it should help them.”

BNPL loans have become more widely available and adoption rates have increased as people of all ages — especially younger adults — have grown more comfortable incorporating them into their shopping habits.

Continued in link above..

 

[In The Zone '98]

They don't wanna see you eat

Credit utilization going above 90 percent if they factor in Pay in 4

 

[Yinny]

They don't wanna see you eat

Credit utilization going above 90 percent if they factor in Pay in 4

And they’re expanding to services like food delivery. I need to reread to see when it is coming but hopefully people steer clear and it doesn’t become a factor in “you don’t have a good mix of credit” part of your score.

 

[Barlow]

Anything to keep poor people poorer

 

[Jaylen Tatum]

 

[Redwood]

The grift continues, eh?

 

[Uachet]

I wonder if they consider "pay in a certain amount of time at no interest" in that list? Read the article, and it does not mention them, so may have to dig a bit farther. I love using that though, because paying 2k a month is preferable then to pay 12k all at once, when there is no interest accrued if you pay by the deadline of 6 months.

Those sort of deals are all over the place too. Used one to replace my havac system, another to replace my roofing.

 

[7th Letter Specialist]

I wonder if they consider "pay in a certain amount of time at no interest" in that list? Read the article, and it does not mention them, so may have to dig a bit farther. I love using that though, because paying 2k a month is preferable then to pay 12k all at once, when there is no interest accrued if you pay by the deadline of 6 months.

Those sort of deals are all over the place too. Used one to replace my havac system, another to replace my roofing.

Get a load of this guy!
Pause

 

[MajesticLion]

 

[Uachet]

Get a load of this guy!
Pause

Why does that bother you?

 

[hashmander]

I wonder if they consider "pay in a certain amount of time at no interest" in that list? Read the article, and it does not mention them, so may have to dig a bit farther. I love using that though, because paying 2k a month is preferable then to pay 12k all at once, when there is no interest accrued if you pay by the deadline of 6 months.

Those sort of deals are all over the place too. Used one to replace my havac system, another to replace my roofing.

only 6 months with a $12k purchase? that's pretty stingy. shyt home depot gives me 24 months for a purchase greater than $1999.

 

[Tribal Outkast]

Don’t over extend yourself and it’s great. If you can’t pay shyt back in a timely manner zz well..

 

[Ezekiel 25:17]

Y'all see this as a bad thing,

But all the more reason to stop using credit cards, budget, and become cheapskates. Let's see what these big corps think then.

I'm cool with my LG OLED for the next 10 years.

 

[The Prince of All Saiyans]

y'all gonna be at costco going into hot dog debt before all this

 

[cyndaquil]

The average person is fukked.