Despite the rapid expansion of digital wallets and growing access to formal financial services, only one in 20 Filipino consumers hold a credit card, highlighting that many may still be credit invisible without access to traditional credit products, according to data from global information and insights company TransUnion.
TransUnion, the Philippines’ first comprehensive private credit reference agency, shared findings from a new study at its inaugural Philippines Financial Services Summit in Manila. The study assessed Filipino consumers who opened their first-ever credit card in 2023, reviewing their early credit journey in terms of product uptake, repayment behavior and overall performance.
With 80 million Filipinos using digital wallets in 2025 and 65 percent having access to formal financial services, the lack of traditional credit access makes it difficult for consumers to build and leverage credit for major purchases, investments, or emergencies.
The study noted that credit cards are often the first step toward financial mobility. In 2023, 88 percent of new-to-card borrowers started their credit journey with a credit card as their first credit product, implying that cards are a gateway for credit inclusion.
In 2024, about 1.46 million Filipinos became new-to-card consumers, making up around 50 percent of overall new card originations in that year, TransUnion found.
Of those entering the card market, around 57 percent were younger than 35 years of age, reflecting the strong role of digitally-engaged youth in driving adoption. Fifty-six percent of new-to-card consumers were women, slightly higher than the overall adult population distribution—an indicator of credit inclusion progress.
While new-to-card consumers, who typically receive lower credit limits than established cardholders, used their credit responsibly with utilization rates similar to their peers (28.8 percent versus 27.9 percent after twelve months), payment performance gaps emerged as a concern.
New-to-card consumers showed weaker credit performance compared to established peers, even when controlled for risk scores.
After 12 months, 28.2 percent of the near prime new-to-card borrowers were thirty days past due (DPD) compared to an industry average of 13.5 percent to 15.3 percent.
TransUnion principal of research and consulting for Asia Pacific Weihan Sun said the higher likelihood of early-stage delinquencies highlights the need for lenders to invest in proactive engagement and education initiatives.
“The study emphasizes that credit cards are more than payment tools, they represent the first step towards financial mobility, offering consumers access to additional liquidity and flexibility when needed,” said Sun.
“Beyond enabling greater financial inclusion, they also provide an opportunity for lenders to build loyalty and trust through long-term relationships with new-to-card consumers, yielding stronger returns as their confidence and credit needs grow,” Sun said.
Once they have a positive experience with their first credit card product, new-to-card consumers are likely to expand their credit wallet. About 9.5 percent of new-to-card borrowers in the study opened subsequent credit products in their first six months post their first card origination.
Among those who opted for a subsequent product, two thirds (67 percent) opened a second credit card, 27 percent chose a personal loan, 5 percent opened an auto loan and 1 percent opened a mortgage.
New-to-card consumers showed a degree of loyalty to the lenders that granted their first credit card product: 44 percent of them opened their second credit card from the same lender and 58 percent returned to an existing lender for a personal loan. However, loyalty declined for secured loans like auto loans (29 percent) and mortgages (32 percent).
New users were more likely to fall behind on payments on subsequent credit products opened. Among near prime borrowers, 6.2 percent of new users were sixty days past due on new products, compared to 1.6 percent of established users.
New-to-card consumers gained lower credit lines on their subsequent credit cards than their risk and age likewise credit-established peers: 71 percent were granted lines below P50,000, and only 3 percent received lines in excess of P300,000, compared to 31 percent and 12 percent, respectively, for established cardholders.
Sun said that by recognizing the potential of these new consumers and supporting them with the right tools, education and responsible lending practices, the industry can “unlock long-term value for both consumers and lenders, while driving inclusive and sustainable growth across the Philippine credit ecosystem.”
