Changes to the way credit scores are calculated could be a boost for prospective borrowers in 2026.
Among the highlights are Buy Now, Pay Later (BNPL) plans being added to credit reports and new scoring models evolving to include a wider range of financial behaviors. Let’s explore what will change throughout 2026 and what’s staying the same.
What’s changing
- BNPL makes its debut. The BNPL phenomenon isn’t going away—hundreds of millions of people use it already—so repayment behavior on these popular installment loans will start appearing on consumers’ FICO credit score. Many BNPL users are younger and don’t have long credit histories, so by using it responsibly, this change can help them build credit faster.
- New scoring models for mortgages. Fannie Mae and Freddie Mac, which provide the majority of the capital to the mortgage market, have made it easier to get approved for a mortgage by eliminating their mandatory credit score of 620 or higher. Credit scores won’t be abandoned altogether, so it will still be important to maintain a healthy score. And new in 2026 are models that consider alternative data sources—like paying rent and utilities on time—and consistent long-term financial behaviors rather than just a daily snapshot.
- Medical debt is fading out. Paid medical collections and debts under $500 are disappearing from reports, reducing surprise dings for many borrowers. Larger, lingering debts can still pose risks to your credit score.
In addition, consumers will be offered more protections. Updates to the Fair Credit Reporting Act will speed up dispute timelines, require better documentation for errors, and strengthen identity theft safeguards.
What’s staying the same
No matter which scoring model a lender uses, the fundamentals of credit health are not changing:
- Paying on time still matters most—to the tune of 35% of your credit score.
- Maintaining lower balances relative to your limits remains important. If your balances start ticking up, you may consider a “snowball or avalanche” approach to wiping out debt.
- Keeping accounts open for a length of time shows you have a proven track record of maintaining healthy credit. However …
- Opening many new accounts in a short time lowers the average age of your diverse suite of accounts and can signify higher risk.
- Having a mix of credit displays your ability to manage a variety of credit types (credit cards, installment loans, mortgage) and can positively impact your score.
Lenders now have more ways to evaluate potential borrowers, which means more opportunities to build your credit score. Make the most of these new rules if they apply to you, check your credit score periodically in SELCO’s digital banking to chart your progress, and get on the road to achieving financial health.
