TransUnion, a global information and insights company, said steady economic growth and easing inflation in the second quarter of 2025 have created a “favorable environment” for accelerated credit expansion in the Philippines.
The economy expanded by 5.5 percent year-over-year in the second quarter, supported by strong household spending and a rebound in agriculture. Headline inflation dropped to 1.4 percent in June, and the Bangko Sentral ng Pilipinas (BSP) has since cut its policy rate to 5 percent as of August.
TransUnion, the country’s first private credit reference agency, said that while Filipinos are becoming more open to using credit, some hesitations remain.
The TransUnion Credit Perception Index (CPI) recorded a score of 73 out of 100 for the general population, a slight decrease from 2024 but reflecting stable sentiment. The index showed a growing trust in credit products and an increased intention to borrow from formal channels like traditional banks, virtual banks, and credit cards.
However, high interest rates (59 percent) and fraud concerns (52 percent) continue to hold back Filipinos from actively using credit.
“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 CEO of TransUnion Philippines.
“By ensuring that borrowing is both responsible and empowering, we can help turn openness into meaningful action that benefits households and the economy alike,” said Faulhaber.
According to TransUnion’s bureau data, formal credit demand in the Philippines surged by 49 percent in the first half of 2025. This was led by personal loans, which grew 75 percent year-on-year, and credit cards, which increased by 50 percent.
Despite the rise in borrowing, delinquency rates have remained stable, suggesting that consumers are managing their payments responsibly.
“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,” Faulhaber said.
TransUnion will host its inaugural 2025 Philippines Financial Services Summit in mid-September to provide deeper insights into the consumer credit landscape.
