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

(www.axios.com)
277 points cebert | 1 comments | 24 Jun 25 00:03 UTC | HN request time: 0s | 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 #
loeg ◴[24 Jun 25 01:32 UTC] No.44362029[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?

Slightly longer repayment time frames. (Multiple months instead of just one.)

replies(1): >>44363355 #
dh2022 ◴[24 Jun 25 06:25 UTC] No.44363355[source]▶
This sounds like a consumer that does not pay the balance each month…
replies(2): >>44365397 #>>44368232 #
1. loeg ◴[24 Jun 25 16:52 UTC] No.44368232[source]▶
I should have specified those durations are both interest-free. If you don't pay your credit card off after one month, it accrues interest at fairly high rates.