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FICO to incorporate buy-now-pay-later loans into credit scores

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277 points cebert | 1 comments | 24 Jun 25 00:03 UTC | HN request time: 0.519s | source
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janalsncm ◴[24 Jun 25 01:47 UTC] No.44362116[source]▶
What is the functional difference between BNPL and credit cards that can explain why it’s become popular? A credit card is literally “buy now pay later” so is it just the ease of onboarding?
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scarface_74 ◴[24 Jun 25 01:56 UTC] No.44362180[source]▶
Fixed payment schedule and no interest being charged.
replies(1): >>44362240 #
SoftTalker ◴[24 Jun 25 02:08 UTC] No.44362240[source]▶
For most of them, interest accrues from the date of purchased but is not charged if you pay on time. If you don’t, you owe all the back interest from day one.
replies(1): >>44362262 #
Tadpole9181 ◴[24 Jun 25 02:10 UTC] No.44362262[source]▶
Ah, that's the scam. Yet another poor tax, then? The rich get interest on money they already spent, the poor get an illusion of safety followed by even more destitution?
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1. scarface_74 ◴[24 Jun 25 03:13 UTC] No.44362578[source]▶
That’s not how BNPL works in its modern form with the third party companies. You pay late fees if you pay late. If you have a 3 month plan, they divide the payment into three equal installments and you pay it off.

The parent poster is confusing BNPL with cobranded cards like Room 2 Go credit cards that have special promotions with “0% for x months”. It’s a regular credit card where the minimum payment won’t guarantee that you pay the original amount off in “x” months, but you only have to pay 2% of the balance. These have always shown up on your credit report.

They are “deferred interest” plans where if you don’t pay the balance off in $x months it will charge you back interest.