‘Pinoys grow more open to credit’
Filipinos are becoming more comfortable with credit even as confidence in their near-term finances weakens amid concerns over inflation and rising living costs, according to a new TransUnion study.
Manila, Philippines - Filipinos are showing greater acceptance of credit, according to a recent TransUnion study. Despite concerns over personal finances, inflation, and rising living costs, the Credit Perception Index (CPI) for the general population has increased by two points to 75 out of 100 in 2026, the highest since the annual survey began in 2023.
This rise in credit confidence stems from improved favorability, trust, and understanding of credit products. However, expectations for personal finances have hit their lowest levels since the study began, with only 64 percent anticipating improvement in the next three months, a drop of three percentage points from 2025. Similarly, 73 percent do not foresee improvement over the next year.
TransUnion Philippines President and CEO Peter Faulhaber noted that the high CPI score and the more cautious personal outlook are two sides of the same story, highlighting that Filipinos are increasingly confident in using credit as a financial tool while grappling with higher prices. Despite the pessimistic outlook, more consumers are willing to utilize credit.
Approximately 43 percent plan to borrow or use credit for purchases, up five percentage points from last year. Additionally, 86 percent intend to save more, 73 percent plan to seek out educational materials, and 70 percent aim to explore new digital products and financial technology services. Borrowing is primarily used to cover everyday necessities, with 59 percent citing emergency expenses as the primary reason for taking out credit, followed by personal expenses at 50 percent and family expenses at 45 percent.
The survey revealed that Filipinos are using credit more responsibly, focusing on specific financial needs rather than discretionary spending. About 93 percent of respondents use at least one fintech product, a slight increase from 91 percent in 2025. E-wallets are the most popular, utilized by 81 percent of respondents, followed by digital banks at 52 percent and digital payment apps at 49 percent.
Traditional banks remain the most trusted financial service, perceived as safe by 88 percent of consumers, closely followed by digital banks at 84 percent.
TransUnion identified transparency, lack of hidden fees, low or fair interest rates, and strong security and fraud protection as the main factors boosting trust in financial products, each at 56, 53, and 52 percent, respectively. However, significant gaps persist, particularly among those outside the banking system. The credit confidence score for the unbanked population decreased by two points to 65, while general credit knowledge dropped to 48 percent from 56 percent.
Financial education remains a challenge, with one in four Filipinos struggling to find educational resources on credit and financial products. Of these, 60 percent expressed difficulty in identifying trustworthy sources, and 44 percent found the available information too complex or confusing. The 2026 CPI survey was conducted by TransUnion and Dynata from May 6 to May 26, covering 1,000 consumers.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
