Typically, when using Buy Now, Pay Later loans, consumers pay for a given purchase in four installments over six weeks, in a model more similar to layaway than to a traditional credit card. The loans are marketed as zero-interest, and most require no credit check or only a soft credit check.

The company behind FICO credit scores announced plans to include buy now, pay later installment loans in users' scores beginning this fall.

FICO is updating credit scoring to include buy now, pay later (BNPL) loans. New models (FICO Score 10 BNPL & 10 T BNPL) aim to provide lenders with better insight into