For many Filipinos, credit has long been a tricky subject. Some see it as a lifeline during emergencies or for financing big purchases, while others still view it with caution, remembering horror stories of debt traps, ballooning interest rates, and scam-ridden lending schemes.
But according to the 2025 Credit Perception Index (CPI) released by TransUnion Philippines, more Filipinos are now beginning to trust credit as part of their financial journey. The country’s CPI score this year stands at 73 out of 100, a stable rating compared to last year’s 74, showing that sentiment toward credit remains largely steady.
What makes the 2025 results especially interesting is the six-point jump in trust toward credit products. More Filipinos today believe that borrowing, when done responsibly, can actually help them reach their goals.
Knowledge Is Power: More Filipinos Want to Learn About Credit
Behind the numbers is a shift in awareness. The survey showed that 69% of Filipinos now say they understand what credit is, and many want to learn more about specific products. Interest in short-term and digital lending grew significantly:
Payday loans: +7 percentage points (pp)
Micro loans: +7pp
Mobile loans: +6pp
Personal loans: +5pp
Buy Now, Pay Later (BNPL): +5pp
This growing curiosity signals a changing mindset. Instead of shying away from credit, Filipinos—especially younger ones—are asking, “How can this tool help me manage my finances better?”
As Peter Faulhaber, President and CEO of TransUnion Philippines, put it: “We are glad to see the CPI score holding largely steady in 2025, supported by growing trust in credit products. More encouragingly, this year’s CPI results also tell us that Filipinos are eager to learn more about financial options that are relevant, accessible, and suited to their needs.”
The Barriers: Why Many Still Hold Back
Of course, trust alone doesn’t guarantee adoption. The study revealed two major stumbling blocks that continue to hold Filipinos back from using credit more actively:
High interest rates – Cited as the top deterrent by 59% of the general population, 52% of the unbanked, and 61% of FinTech users.
Fear of scams and fraud – Around half of all respondents expressed this concern, making it the second biggest barrier across all groups.
Security and trust ranked just as important as convenience when choosing a financial institution. In fact, 58% of respondents said safety was their top consideration, just a notch below the 60% who prioritized convenience.
For everyday Filipinos, this makes sense. It’s hard to embrace credit if you feel you might get buried in payments or lose your money to online fraud.
The Unbanked: Slowly Closing the Gap
A bright spot in this year’s CPI is the unbanked population—those who don’t have formal bank accounts or credit histories. Their CPI score rose to 67, up from 65 in 2024, narrowing the gap with the general population.
The improvement was driven by big gains in trust (+9 points) and knowledge (+8 points). Many unbanked Filipinos reported better awareness of credit products like:
Mobile loans (+16pp)
Payday loans (+15pp)
Automotive loans (+13pp)
Micro loans (+12pp)
Personal loans (+10pp)
BNPL (+10pp)
Although their overall knowledge (56%) still trails behind the general population (69%), the trend shows progress. This is crucial because financial inclusion depends heavily on bringing unbanked Filipinos into the formal financial system.
FinTech: The New Gateway to Finance
Another key finding from this year’s study is the role of FinTech. For younger generations, eWallets and digital banking apps are becoming their first financial product—not a savings account.
91% of respondents use at least one FinTech product.
77% use eWallets, 51% online banks, and 47% digital payment apps.
Among the general population, 35% said an eWallet was their first financial product, compared to only 30% who said it was a bank account.
This trend was strongest among Gen Z (47%) and Millennials (37%).
Interestingly, FinTech users also had the highest CPI score at 74, slightly better than the general population. They also demonstrated the strongest credit knowledge at 71%, showing how technology is helping Filipinos learn and adopt financial tools faster.
What This Means for Filipino Families
The findings highlight a tension that many Filipinos feel today:
On one hand, there’s excitement about new financial products that promise convenience, flexibility, and opportunity.
On the other, there’s hesitation due to high costs and safety risks.
For households, this means credit can still be a double-edged sword. Used wisely, it can fund education, start a business, or handle emergencies. Used recklessly—or without proper safeguards—it can lead to crippling debt and financial stress.
The lesson is clear: financial literacy is key. Knowing not just how to borrow, but also when and why, is what will turn credit into a wealth-building tool rather than a burden.
Building a Safer Credit Environment
The challenge now lies with banks, lenders, regulators, and FinTech companies. To unlock broader participation in the credit economy, they need to:
Offer transparent and affordable lending options.
Strengthen anti-fraud systems to restore confidence.
Invest in financial education programs for both banked and unbanked populations.
As Faulhaber summed it up: “The strong performance of FinTech users and the narrowing gap between the unbanked and general population reflect encouraging momentum toward greater financial inclusion. However, to fully unlock the benefits of credit and drive broader adoption, we must continue addressing persistent barriers – especially concerns around fraud and security that still deter many Filipinos from engaging with credit.”
The Bottom Line
Filipinos are starting to see credit not as something to fear, but as a potential ally in achieving financial goals. With more trust in products, rising knowledge among the unbanked, and the accessibility of FinTech, the future looks promising.
But for this trust to translate into real progress, institutions must tackle the barriers of cost and security head-on. Only then can credit truly empower Filipino families and help the nation build a financially resilient middle class.
