Buy now, later (BNPL) payment options are increasingly popular, especially among young consumers. A recent study from JD is that it is actively using BNPL loans to purchase 42% of the Gen Z.
However, BNPL loans are not integrated by large credit scoring companies, ie the lender that lenders are likely to measure borrowers and make credit decisions are likely to be a blind point in connection with these debts.
That’s so far.
FICO, one of the leading credit groups on Monday, 10 T BNPL and FICO account on Monday, 10 T BNPL, now the two new Puan purchased now, declared to pay the information.
The lender using these scores can now get a more complete picture in the background of the borrower, which has more informed credit decisions. For borrowers, especially in the past, it means a better credit account for those responsible for the BNPL service.
“We want to be sure to inform the lender using the FICO account to be the most clearly,” Julie May, Vice President and CEO of B2B B2B scores in FICO. “This is a growing product, and we think that the groundbreaking is important in this approach.”
“It can really handle financial access,” he said. “Often, people use BNPL and are represented on credit scores, they can manage more credit.”
Most scores are increasing according to FICO’s research
Earlier this year, FICO has published the results of a one-year analysis in Tandem in Tandem with BNPL. Analysis that imitates the impact of BNPL data to FICO scores, “Most likely,” a analysis of the “most likely”, which is likely to increase their scores.
“Those who are groundbreaking and exciting about these new scores, they will allow you to build a loan and the Vice President of FICO Dornhelm, FICO scores and forecasting analysts, including BNPL data, can be benefited from their borrowers.”
FICO, as soon as it is preparing to launch new scores for lender to lenders, can also celebrate a change of strategy.
Many borrowers can initially like a product that increases the loan, not the proposal of BNPL loans, and the potential to ensure a line to ensure a line of credit (appropriately is appropriately.
“One of the early sales points for BNPL companies,” Ben Danner, old Analytics, “Ben Danner, Old Analytics, Credit and Trade Cavelin Strategy and Research Payment code before this year. “The idea was that the absence of this sharing would be attractive for consumers, especially for those interested in credit scores.”
Continued: “However, with potential regulatory changes in the horizon, these loans give meaning to a strategy for BNPL sellers to direct a strategy that allows you to increase the loan.”