Demand for credit products is rising among Filipino consumers, but high costs and eligibility barriers are preventing many prospective borrowers from completing their applications, according to TransUnion.
The credit information company’s Q2 2026 Consumer Pulse Study found that 48% of Filipino consumers planned to apply for a new credit product or refinance existing debt within the next 12 months.
Personal loans emerged as the most sought-after product among prospective applicants, with interest rising to 52% from 45% in the second quarter of 2025. Planned credit card applications also increased to 35% from 31%.
Demand for mortgages, however, declined to 12% from 17% a year earlier.
Despite the strong appetite for credit, 60% of consumers who considered applying eventually abandoned the process, up from 57% in the previous year.
High costs were the leading reason for dropping an application at 35%, followed by finding another source of funds at 32%. Income or employment-related eligibility issues were cited by 28%.
“More Filipinos are turning to credit for the flexibility it offers, especially in uncertain times. However, when six in ten of those who considered borrowing walk away from a credit application, the issue is more friction than intent,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion.
“The opportunity for lenders is to make credit more inclusive, so responsible borrowers are not lost to cost, complexity or eligibility barriers, while consumers can play their part by maintaining healthy credit habits. That is how we turn credit access into lasting financial resilience.”
The findings point to an opportunity for banks, fintech companies and other lenders to improve their credit assessment and application systems while making borrowing costs and eligibility requirements clearer to consumers.
More than half, or 58%, of respondents considered access to credit and lending products extremely or very important. However, only 44% believed they had sufficient access, while 24% disagreed.
Use of available credit during the previous three months rose to 17% from 15% a year earlier. Meanwhile, 51% expected their bills and loan payments to increase over the next three months, compared with 49% in the second quarter of 2025.
The growing reliance on credit comes as Filipino households adjust their finances in response to inflation. The survey found that 55% had reduced discretionary spending on dining out, travel and entertainment, up from 47% a year earlier.
Another 49% added to their emergency savings, while 45% expected they would be unable to fully pay at least one existing bill or loan.
“Across these behaviors – from trimming discretionary spending to building savings while leaning on credit more selectively – what stands out is how intentional these choices are,” Sun said.
“Filipino households are not simply responding to pressure, but prioritizing what matters and being deliberate with every peso, using credit with intention to smooth day-to-day cash flow and bridge spending gaps. This shift toward more active financial management is an encouraging sign of growing financial maturity.”
Despite these pressures, 74% expected their income to improve over the next 12 months, while the same percentage remained optimistic about their household finances.
“Filipino households are entering the second half of the year optimistic but clear-eyed. They expect their incomes to stay resilient, which keeps confidence broadly intact – yet they feel the weight of inflation on everyday costs, such as rice prices, and uncertainty over upcoming financial commitments amid broader global economic headwinds,” Sun added.
TransUnion surveyed 961 Filipino adults from April 29 to May 19, 2026. The respondents covered Gen Z, millennials, Gen X and baby boomers.
