FICO, the publicly traded data analytics company known for its aggregate credit score service, has launched a new buy-now-pay-later (BNPL) option to provide inexperienced credit users with better access to financial and banking services.
Formally known as the Fair Isaac Corporation, FICO announced on June 23 that it had developed two new scoring services to reflect the rising importance of BNPL loans in the U.S. credit-reporting system, which includes the Big Three credit reporting agencies: Experian, Equifax, and TransUnion.
Currently, FICO produces the widely used consumer credit scores that are used by 90 percent of U.S. lenders. They range from 300 to 850 and are based on a handful of factors that determine how likely a borrower is to repay a loan, which in turn affects borrowing capacity, repayment terms, and interest rates….