TAMPA, Fla. (WFLA) – With money tight for a lot of people, the buy now, pay later option has taken the economy by storm and changed how some families pay for everyday items, from groceries to take-out food and furniture.

But experts warn that soon these loans will affect the credit scores of millions of Americans. That is because FICO has announced it will start incorporating this data into new scoring models, beginning in the fall.

John Zajac of the Better Business Bureau warned consumers need to know what they are getting into.

“People need to understand that they are borrowing against future money that they’re going to have to pay back,” Zajac said. “People need to understand whether it’s worth it for them and their budget.”

He said to read the fine print and know the interest rate you will be charged.

“Where is this going to be financed? There’s a lot of information about these finance companies where you can find complaints and reviews and see that there’s added fees, added costs that you might not be aware of when you’re taking out these loans,” Zajac said.

“Let’s say you miss a payment. What happens? Does the interest rate change on that? Does it go from a zero percent loan to something much higher?,” Zajac asked.

According to the Consumer Financial Protection Bureau, more than one-fifth of consumers have used buy now pay-later. The Federal Reserve has reported that “nearly one-fourth” of them paid late in 2024, up from 18% in 2023. It’s still unclear how it will impact your actual score but one thing is for sure: future lenders will now know about these types of loans.