TransUnion Philippines said the country’s steady economic growth and easing inflation in the second quarter could accelerate credit expansion.
Data from the credit bureau showed that formal credit demand surged in the first half of 2025. This was led by higher personal and credit card loans.
Card balances continued to grow steadily, while delinquency rates remained stable, suggesting borrowers are keeping up with their payments.
TransUnion’s 2025 credit perception index (CPI) showed Filipinos’ credit sentiment was stable, with a score of 73 out of 100.
“We are seeing a growing willingness among Filipinos to embrace credit as a tool for progress, but they want to know they can do so with confidence,” said Peter Faulhaber, president and chief executive of TransUnion Philippines.
The Philippines’ gross domestic product expanded by 5.5 percent year-on-year in the second quarter, while headline inflation was 1.5 percent in August 2025, below the Bangko Sentral ng Pilipinas’ (BSP) 2.0 percent to 4.0 percent target.
TransUnion said the BSP’s policy rate cut in June was seen making borrowing conditions more supportive for both consumers and lenders. The policy rate was further reduced to 5.0 percent in August.
The bureau said improving market conditions give lenders an opportunity to expand portfolios, while also emphasizing the need for trust, financial education and personalized engagement strategies to address consumer hesitations.
“As external conditions improve, it is essential for lenders to capitalize on growth opportunities, act swiftly amid easing rates and maintain vigilance through trust and sound risk management—ultimately enabling deeper, more confident engagement with increasingly credit-ready consumers,” Faulhaber said.
