Filipinos are becoming more comfortable with credit even as household budgets remain under pressure, potentially giving banks, digital lenders, and other formal financial institutions more room to expand their reach.

The 2026 TransUnion Credit Perception Index (CPI) rose to 75 out of 100, its highest level since the study began in 2023. The improvement was driven by stronger trust, favorability, and understanding of financial products.

That growing confidence is also reflected in Filipinos' borrowing preferences. More consumers said they may turn to digital banks, traditional banks, and credit cards for future borrowing, while fewer planned to rely on family and friends.

The shift suggests a credit market that is becoming more formal and digital as consumers grow more willing to use financial products beyond traditional borrowing channels.

At the same time, Filipinos appear to be paying more attention to how they manage that credit. TransUnion found that emergency expenses remained the top reason for borrowing, followed by personal and family needs, utilities, and education.

More consumers also said they plan to save and seek educational materials to improve their finances, pointing to a growing interest in making better financial decisions alongside greater access to credit.

This development could translate to a larger market for financial institutions' credit products, where trust, transparency, and financial education will matter just as much as access.