While digital payments have surged across the Philippines, a significant gap in formal credit access persists, locking millions out of long-term financial growth. New data from TransUnion highlights this paradox, showing that despite widespread adoption of digital tools, building a credit history remains a challenge for most Filipinos.
The Digital Boom and the Credit Barrier
In 2025, an estimated 80 million Filipinos used digital wallets, marking a significant shift towards digital finance. Overall, about 65 percent of the population now has access to some form of formal financial service. However, this accessibility has not translated into widespread credit ownership. The data reveals a stark contrast: only one in every 20 consumers, or 5 percent, owns a credit card.
This leaves a vast portion of the population "credit invisible," meaning they lack the documented credit histories necessary to secure loans for major life goals. This invisibility hampers their ability to finance vehicle purchases, buy a home, access business capital, or obtain other types of credit.
Profile of the New Filipino Cardholder
The journey into formal credit for many Filipinos begins with a credit card. A TransUnion study focusing on new-to-card borrowers—those who opened their first card in 2023—found that 88 percent started their credit journey with a card. This underscores its critical role as a gateway, especially as digital commerce expands.
In 2024, about 1.46 million Filipinos became new credit cardholders. This wave is being driven by younger, digitally-savvy consumers, with 57 percent of new users under the age of 35. Notably, women represented 56 percent of new cardholders, indicating positive movement towards gender-inclusive lending practices.
These new borrowers typically received smaller credit limits but demonstrated initial responsibility, showing utilization rates similar to those of established users. Their ambitions extend beyond a single card; 9.5 percent acquired an additional credit product within six months, most commonly a second credit card, a personal loan, or an auto loan.
Risks and the Need for Responsible Engagement
Despite promising signs of adoption, the data flags areas of concern regarding repayment behavior. Among near-prime borrowers, 28.2 percent of new users were 30 days past due on payments after 12 months, a rate far exceeding industry norms. Even prime-plus consumers showed slightly elevated delinquency rates.
The challenge continues as borrowers seek more credit. For subsequent products, 71 percent received credit limits below P50,000. Furthermore, delinquencies on new credit lines were higher among new borrowers, with 6.2 percent of near-prime new users falling 60 days past due, compared to just 1.6 percent of established users.
TransUnion emphasizes that these new-to-credit consumers will define the future of the Philippine credit market. The firm stresses that responsible lending practices and intensified financial education are non-negotiable to mitigate early-stage risks and achieve truly inclusive economic growth. Lenders are urged to enhance early engagement strategies to guide new borrowers towards sustainable credit habits.
