Credit scoring models are shifting to include rent, utility, and buy-now-pay-later payments in 2026, marking a fundamental change in how mortgage lenders and financial institutions assess creditworthiness. On April 22, 2026, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac would accept VantageScore 4.0 and eventually FICO Score 10T—both of which factor in alternative payment data—as approved credit scoring models for mortgage origination.
Mortgage lenders can now use VantageScore 4.0 from each credit bureau through tri-merge credit reports, according to Fannie Mae’s Selling Guide updates. The shift represents a departure from decades of reliance on traditional FICO scores, which primarily tracked credit card and loan repayment history. With the new models, consistent rent and utility payments can now directly influence a borrower’s credit score, potentially opening mortgage doors to millions of renters with thin or limited credit histories.
The integration of buy-now-pay-later data reflects rapid growth in that lending segment. According to a December 2025 Consumer Financial Protection Bureau study, approximately 53.6 million consumers—roughly one in five U.S. adults—used a BNPL loan in 2023, a 12% increase from 2022. BNPL originations jumped from $35.8 billion in 2022 to $45.2 billion in 2023. Despite this explosive growth, BNPL activity remained largely invisible to traditional credit scoring models until recently, creating what regulators called a “credit blind spot.” About 63% of BNPL borrowers had multiple BNPL loans outstanding simultaneously, and roughly one-third borrowed from more than one provider, yet lenders had no visibility into these obligations.
FICO responded by creating two new BNPL-enabled credit scores: FICO Score 10 BNPL and FICO Score 10T BNPL, announced in March 2026. These models use algorithmic logic to aggregate multiple concurrent BNPL loans in certain score calculations, preventing a flurry of small loans from appearing riskier than they are. In validation studies with Affirm data on over 500,000 consumers, FICO found that 85% of BNPL customers experienced score changes of fewer than 10 points when BNPL data was simulated, and 97% of highly active BNPL users (five or more accounts) experienced score changes of fewer than 20 points.
The regulatory push accelerated following Fannie Mae’s November 2025 elimination of the minimum 620 credit score requirement for Desktop Underwriter loans. Instead of relying on a single credit score, the system now evaluates a borrower’s full financial picture, including rent payments, utility history, income stability, and overall payment behavior. This modernization potentially affects tens of millions of Americans, according to Federal Housing Finance Agency Director Bill Pulte, who championed the change.
Broader adoption is expected to grow gradually. By the end of 2026, most mainstream lenders are projected to use either FICO 10T or VantageScore 4.0 as their primary scoring methods. The shift requires credit bureaus to furnish BNPL data at scale—a process still underway. Some major BNPL providers have begun reporting to credit bureaus, but adoption remains uneven as the industry works to ensure short-term installment products are interpreted appropriately within traditional credit reporting frameworks.
Sources
- Fannie Mae — Credit score model updates announced April 22, 2026, allowing use of VantageScore 4.0 and future FICO Score 10T
- Federal Housing Finance Agency (FHFA) — Official policy update on credit scores and modernization of mortgage lending standards
- FICO — BNPL-enabled credit score models and validation study data on score impact (March 12, 2026)
- Consumer Financial Protection Bureau (CFPB) — December 2025 report on BNPL market, borrower usage, and origination data
- MC Federal Credit Union — 2026 credit score playbook on rent, utility, and BNPL integration
