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

Re:FICO to incorporate buy-now-pay-later loans into credit s... by matthewdgreen on Tuesday June 24, 2025 @07:00AM (#44364798)

This is a one-time effect, though. Or at least, an effect that only changes periodically (and should reverse) when interest rates change. 30-year mortgages have been standard in the US for most of my life, and houses have gotten a lot more expensive during that time.

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Re:FICO to incorporate buy-now-pay-later loans into credit s... by Uvix on Tuesday June 24, 2025 @07:54AM (#44365170)

The effect may pause when interest rates change, but it's unlikely to reverse significantly. People who have homes now aren't going to want to sell for less than they paid for them, so there's a lot of inertia against prices going down.

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Re:FICO to incorporate buy-now-pay-later loans into credit s... by schmidtleonard on Tuesday June 24, 2025 @09:28AM (#44366049)

The home ownership rate in the USA is 65%. If house prices start going down, money will be printed until they start going back up.

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Re:FICO to incorporate buy-now-pay-later loans into credit s... by Retric on Tuesday June 24, 2025 @07:50AM (#44365139)

Mortgage loans have been getting cheaper due to automation and the commoditization of loans / increase in surplus capital.

That then pushes up home prices over time relative to inflation.

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Re:FICO to incorporate buy-now-pay-later loans into credit s... by matthewdgreen on Tuesday June 24, 2025 @03:50PM (#44370307)

Home prices have doubled in most areas since 2009 (and worse in many areas.) when people complain about prices in 2025, this is what they’re talking about. This is not driven by the novel existence of 30-year mortgages and interest rates are at a near-term high.

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Re:FICO to incorporate buy-now-pay-later loans into credit s... by Retric on Tuesday June 24, 2025 @04:30PM (#44370695)

Half of that is inflation. Most of what remains is the anomaly in housing prices in 2009 https://fred.stlouisfed.org/series/MSPUS

Inflation adjusted median US home prices Q4 2024 where 419,300 vs Q4 2006 ~382,00 that isn’t flat but the difference is far less interesting.

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Re:FICO to incorporate buy-now-pay-later loans into credit s... by matthewdgreen on Thursday June 26, 2025 @08:33AM (#44386797)

Median home prices aren’t very interesting because most of the increase is limited to specific competitive areas, and median US home prices hides that effect. I’m sure houses in deeply rural areas haven’t gotten much more expensive, but it isn’t relevant to me.

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Re:FICO to incorporate buy-now-pay-later loans into credit s... by Retric on Thursday June 26, 2025 @12:44PM (#44389052)

Well over half of Americans are living in Urban areas so median here is a measure of urban home prices.

Further average home prices reflects overall economic gains. The top 10%, 1%, 0.1%, etc getting richer buy nicer stuff driving up the average but that says little about overall affordability.

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