‘Pinoys grow more open to credit’

MANILA, Philippines —  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.

The 2026 Credit Perception Index (CPI) for the general population rose by two points to 75 out of 100 from 73 last year, the highest since TransUnion launched the annual study in 2023. The increase was supported by better credit favorability, product trust and product knowledge.

However, the improvement in attitudes toward credit came as expectations for personal finances fell to their weakest levels since the survey began.

Only 64 percent of Filipinos expect their financial situation to improve over the next three months, down three percentage points from 2025.

Likewise, 73 percent expect an improvement over the next year, also three points lower. Inflation, rising living costs and energy prices emerged as the leading concerns weighing on consumers.

“A record-high CPI score and a softer personal outlook may appear contradictory, but they are two sides of the same story. Filipinos are more confident in credit as a tool, even while they feel the squeeze of higher prices,” TransUnion Philippines president and CEO Peter Faulhaber said during a press briefing.

Despite the weaker outlook, consumers appear more willing to use credit. About 43 percent said they intend to borrow or use credit for purchases, five percentage points higher than last year.

Meanwhile, 86 percent plan to save more, 73 percent intend to access more educational materials and 70 percent plan to explore new digital products and financial technology services.

The survey showed that borrowing is largely being used to meet everyday needs. Emergency expenses were the most common reason for taking out credit at 59 percent, followed by personal expenses at 50 percent and family expenses at 45 percent.

Faulhaber said TransUnion viewed the results as an indication of a more mature perception of credit, with consumers using borrowing for specific financial needs rather than largely discretionary spending.

About 93 percent of respondents said they use at least one fintech product, up from 91 percent in 2025. E-wallets remained the most widely used at 81 percent, followed by digital banks at 52 percent and digital payment apps at 49 percent.

Traditional banks nevertheless remained the financial service perceived as safest by consumers at 88 percent. Digital banks followed closely at 84 percent.

Across population groups, transparency or the absence of hidden fees was the biggest factor that could strengthen trust in financial products at 56 percent, followed by low or fair interest rates at 53 percent and strong security and fraud protection at 52 percent.

Still, gaps remain particularly among Filipinos outside the banking system. The CPI score of the unbanked population fell by two points to 65, while general credit knowledge declined to 48 percent from 56 percent.

Financial education also remains a challenge. One in four Filipinos said they had difficulty finding educational materials on credit and financial products. Among these respondents, 60 percent said it was difficult to determine which sources to trust, while 44 percent found available information too complex or confusing.

The 2026 CPI survey was conducted by TransUnion and Dynata from May 6 to May 26 and covered 1,000 consumers.