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

(www.axios.com)
277 points cebert | 2 comments | 24 Jun 25 00:03 UTC | HN request time: 0.658s | source
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firesteelrain ◴[24 Jun 25 00:21 UTC] No.44361592[source]▶
Credit scores will tank further
replies(3): >>44361606 #>>44361746 #>>44361866 #
UltraSane ◴[24 Jun 25 01:02 UTC] No.44361866[source]▶
If customers make every payment their score should improve.
replies(4): >>44361943 #>>44362076 #>>44362277 #>>44364598 #
dh2022 ◴[24 Jun 25 01:16 UTC] No.44361943[source]▶
What is the benefit for a consumer to use this type of loan and then pay it back on time versus using a credit card and then paying the card back on time?

To me this seems like a new product that would target a different consumer than the one that makes payments on time. But I would like if someone challenges this view. Thanks!

replies(5): >>44362029 #>>44362066 #>>44362282 #>>44362283 #>>44368088 #
UltraSane ◴[24 Jun 25 02:13 UTC] No.44362282[source]▶
Lower interest because the seller pays the interest
replies(1): >>44363366 #
1. dh2022 ◴[24 Jun 25 06:27 UTC] No.44363366[source]▶
But a lower interest expense is not relevant to a consumer that pays the balance on time…
replies(1): >>44367664 #
2. UltraSane ◴[24 Jun 25 16:04 UTC] No.44367664[source]▶
If you put the cost on a credit card and paid it off over the same number of months you would pay a lot of interest.