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

[FBaggins]

1. That makes sense to me

You are incurring a debt - so it makes sense for your behaviors related to that debt should influence your ability acquire financing in the future.

Critics say that BNPL leads to "phantom debt" that could hurt credit scores

But it isn't "phantom debt"... it's the real thing. You came home with a thing that you hadn't paid for yet and you then have to pay for it. It walks and quacks like a duck...

The big question: Will the credit profile of borrowers improve or deteriorate after BNPL loans are integrated?

That's a really good question - but I'd argue that in many cases it could improve credit scores. BNPL deals often go to people with little to no credit (or worse... bad credit). If they can actually get credit (pun not intended) for paying those deals on time... it should help improve their score.