Filipino borrowers abandon credit plans as costs bite

60% considered financing but did not proceed up from 57% a year earlier.

Access to credit remains important for Filipino consumers, but many still face difficulties securing loans and other lending products.

Some 96% of consumers said access to credit and lending products was very or extremely important to achieving their financial goals, unchanged from the same period in 2025, according to TransUnion’s Consumer Pulse Study Q2 2026.

The figure was highest amongst Gen Z consumers at 98%, followed by millennials at 97%. This fell to 93% for Gen X and 90% for baby boomers.

However, only 44% of consumers said they had sufficient access to credit and lending products, down two percentage points from the first quarter of 2026.

Access was highest amongst Gen Z and millennials, both at 47%. This compared with 41% for Gen X and 31% for baby boomers.

Demand for borrowing also remained steady. About 48% of consumers said they planned to apply for new credit or refinance existing borrowing, compared with 51% in the second quarter of 2025.

Personal loans were the most sought-after product, with application intent rising to 52% from 45% a year earlier. Interest in credit cards also increased to 35% from 31%.

Mortgage application plans, however, fell to 12% from 17%, reflecting continued affordability pressures and higher borrowing costs.

Many consumers also abandoned plans to borrow. About 60% said they had considered applying for credit but ultimately decided not to proceed, up from 57% a year earlier.

The cost of borrowing was the most common reason, cited by 35% of consumers. Concerns about income or employment eligibility were cited by 28%, whilst 22% pointed to lengthy approval processes.