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Recently, many retailers have turned to "Buy Now, Pay Later," which allows consumers to purchase products and receive them immediately.

FICO announced it will begin factoring in Buy Now, Pay Later loans into people’s credit scores starting in the fall of 2025.

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FICO announced Monday that it will begin incorporating buy-now-pay-later data into new scoring models, marking the first time the company has factored the popular loans into credit scores.

FICO, the company whose credit scores are used by 90 percent of U.S. lenders, said it would start including a person’s “buy now, pay later” payment history in its all-important credit score.

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How well — or how poorly — Americans are managing their Buy Now, Pay Later loans soon could be reflected in their credit scores.