Filipinos’ perception of credit ‘maturing’–TransUnion
Filipinos’ perception of credit continued to improve gradually this year, as consumers faced a more difficult economic environment, according to US-based credit insights firm TransUnion.
A survey of 1,000 consumers conducted by TransUnion from May 6 to May 26 found that the country’s credit perception index, which measures how Filipinos view and engage with lending products, rose to 75 out of 100. It was the highest score since the study began in 2023.
The reading was up from 73 in 2025, although the increase remained within the survey’s margin of error.
The improvement was driven by a four-point rise in consumers’ overall favorability toward credit products. It was also supported by a three-point increase in trust in credit offerings and a three-point gain in consumers’ self-reported knowledge of credit products.
E-wallets remained the most widely-held financial product, with 80 percent of respondents reporting ownership. Buy now, pay later services posted the strongest growth in adoption, rising eight points to 26 percent, while credit card ownership increased seven points to 38 percent.
Emergency expenses, cited by 59 percent of respondents, were the most common reason Filipinos had used credit products and services, followed by personal expenses at 50 percent and family expenses at 45 percent.
This comes as consumers grapple with a challenging economic environment. Data showed 64 percent of respondents expected their financial situation to improve over the next three months, the lowest level in the survey’s history. TransUnion attributed the weaker outlook to high inflation, which has remained above the central bank’s 3-percent target amid an oil-price shock linked to the conflict in the Middle East.
‘A good sign’
At a news conference, Peter Faulhaber, president and CEO of TransUnion Philippines, said the fact that emergency expenses ranked as the top reason for past borrowing was “actually a good sign.”
“We see this as a maturing perception of credit,” Faulhaber said. “Rather than using credit perhaps to just buy things that aren’t necessarily important or just rack up really large bills, they’re using it strategically for specific purpose.”
The findings come as household borrowing continues to grow faster than incomes, raising concerns among regulators about consumers’ ability to withstand economic shocks.
Notably, consumers also appeared to be taking steps to strengthen their finances. About 86 percent of respondents said they intended to save more for emergencies, up from 84 percent a year earlier.
The share of respondents seeking more educational materials to improve their finances also rose five points to 73 percent.
“What stands out this year is that confidence in credit continued to improve even as consumers faced a more challenging economic environment,” Faulhaber said.
