New-to-Card Consumers Key to Driving Inclusive Credit Growth in the Philippines – TransUnion Study

• One in two new cards opened is by a new-to-card borrower – consumers opening their first-ever credit card account – indicating the importance of cards in enabling credit inclusion
• While underperformance is a concern, new-to-card borrowers offer substantial opportunity to enable sustainable growth for the credit economy
• Enhanced proactive monitoring, robust risk management models and greater consumer education are essential to driving sustainable growth in the credit ecosystem

Manila, Philippines, October 16, 2025 – Despite 80 million Filipinos¹ using digital wallets in 2025 and 65%² having access to formal financial services, only one in 20 consumers held a credit card, according to TransUnion data. This highlights that while financial inclusion has advanced rapidly with the expansion of digital wallets, many Filipinos might still be credit invisible without access to traditional credit products, including credit cards. Being credit invisible makes it difficult for consumers to successfully build and leverage credit to start businesses, buy vehicles, invest in property – or even to access the liquidity they need for emergencies. 

In 2023, 88% of new-to-card borrowers started their credit journey with a credit card as their first credit product, according to TransUnion data, implying that cards are a gateway for credit inclusion. As commerce in the Philippines becomes more digital, along with greater e-commerce adoption, credit cards are likely to become the preferred method of payment, especially for larger-ticket purchases.

To help lenders better understand the country’s credit-invisible consumers and promote inclusive, sustainable growth in the Philippine credit market, TransUnion (NYSE: TRU) — a global information and insights company and the country’s first comprehensive private credit reference agency — shared findings from a study on new-to-card consumers at its inaugural Philippines Financial Services Summit in Manila.

With new-to-card consumers defined as those with no prior credit card in wallet who opened their first-ever credit card, the study assessed Filipino consumers coming into the market over 12 months in 2023, and reviewed their early credit journey in terms of product uptake, repayment behavior and overall performance six months after they received their first card.

“The study emphasizes that credit cards are more than payment tools, they represent the first step towards financial mobility, offering consumers access to additional liquidity and flexibility when needed” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “Beyond enabling greater financial inclusion, they also provide an opportunity for lenders to build loyalty and trust through long-term relationships with new-to-card consumers, yielding stronger returns as their confidence and credit needs grow.”

Strong Engagement from New-to-Card Consumers but Performance Remains a Concern

TransUnion’s study found in 2024, approximately 1.46 million Filipinos became new-to-card consumers, making up around 50% of overall new card originations in that year. Among those entering the card market, around 57% were younger than 35 years of age, reflecting the strong role of digitally-engaged and connected youth in driving adoption. The demographic dividend associated with these consumers also highlights the need for lenders to capture them early to build deeper relationships over time. In terms of gender distribution, 56% of these consumers were women, which is slightly higher than the overall adult population distribution – an important indicator of credit inclusion progress.

Typically, new-to-card borrowers start with lower credit limits than established cardholders. Even when compared by borrower risk levels, they receive lower access to credit due to their limited credit history. Despite the lower limits, new-to-card consumers used their credit similarly to established cardholders and in a responsible manner, with utilization rates of 28.8% and 27.9%, respectively, after 12 months. This healthy comparison indicates that new-to-card borrowers are not eager to overuse their credit lines, which can lead to overburdened financial situations.

Table 1: Credit Card Limits Assigned to New-to-Card and Established Borrowers

Source: TransUnion Philippines Consumer Credit Database

However, payment performance gaps emerged as a concern. New-to-card consumers showed weaker credit performance compared to their better-established peers, even when controlled for risk scores. After 12 months, 28.2% of the near prime new-to-card borrowers were 30 days past due (DPD) compared to an industry average of 13.5% – 15.3%, while 4.1% of prime plus borrowers showed a 30+ DPD delinquency rate, compared to an industry average of 3.2% –4.0%, measured for same vintage time periods.

“New-to-card consumers present a strong opportunity for lenders, as they tend to be younger and demonstrate a clear willingness to use credit,” said Sun. “However, given their higher likelihood of early-stage delinquencies, lenders should invest in proactive engagement and education initiatives to help consumers build responsible credit management habits early in their credit journey, ultimately fostering long-term financial health that benefits not only the consumers but also strengthens the overall credit ecosystem.”

New-to-Card Consumers Likely to Open Additional Products to Meet Growing Needs

Once they have had a positive experience with their first credit card product, new-to-card consumers are likely to expand their credit wallet to access further liquidity.

Nearly one in ten (9.5%) of new-to-card borrowers in the study opened subsequent credit products in their first six months post their first card origination, compared to 15.7% of established credit card consumers who opened an additional product after opening a new card in the first six months of the study. This indicates a meaningful level of early engagement from these new entrants.

Among the new-to-card consumers who opted for a subsequent product, two thirds (67%) opened a second credit card as their next product, 27% chose a personal loan, 5% opened an auto loan, and 1% opened a mortgage. This indicates that new-to-card borrowers quickly learn how to use credit lines to meet their needs, and may find it easier to open similar credit facility as subsequent products in their credit journeys.

New-to-card consumers are somewhat loyal to the lenders that grant their first credit card product: 44% of them opened their second credit card from the same lender. Loyalty is even stronger when applying for a personal loan as a second product – 58% returned to an existing lender in wallet. However, loyalty declines with secured loans: only 29% chose the same lender for an auto loan, and 32% for a mortgage, which is likely due to differences in secured and unsecured lending processes and product positioning, as secured product lenders typically seek borrowers with more established credit histories and strong demonstrated credit performance.

“A positive first experience with credit positions Filipinos well to consider additional products that respond to their growing needs,” Sun said. “However, there seems to be an opportunity to build loyalty with existing lenders when they consider subsequent products, highlighting that lenders could benefit from building lifelong relationships through closer monitoring of shifting and growing consumer needs, offering customized solutions and enabling focused education initiatives.”

Credit Card Growth with Guardrails

New-to-card consumers gained lower credit lines on their subsequent credit cards than their risk and age likewise credit-established peers: 71% were granted lines below PHP50,000, and only 3% received lines in excess of PHP300,000, compared to 31% and 12%, respectively, for established cardholders.

Although new users had lower balances, their balances grew steadily over the six months following the new card opening at a rate similar to established users. On an average, established users had PHP55,497 in card balances after six months, while new users had PHP25,280. Given lower line access and potentially greater needs, new users used a slightly higher percentage of their credit limits — 37% compared to 32% for established users.

Similar to the performance of their first credit card product, new users were more likely to fall behind on payments on subsequent credit products opened. Among near prime borrowers, 6.2% of new users were 60 days past due on new products, compared to 1.6% of established users. For prime plus borrowers, 3.1% of new users were delinquent, versus just 0.3% of established users. The performance observations in subsequent products underscore the critical need for enhanced monitoring and predictive risk management approaches by lenders, along with greater efforts to educate consumers on responsible credit use.

“New-to-card consumers are not just entering the credit market — they are shaping its future,” concluded Sun. “By recognizing their potential and supporting them with the right tools, education and responsible lending practices, we can unlock long-term value for both consumers and lenders, while driving inclusive and sustainable growth across the Philippine credit ecosystem.”

*The analysis focused on those who had opened their first credit card between January and December 2023. They were compared against established cardholders with at least one active card and two years of credit history, with controls for risk score and age to ensure like for like comparisons. Subsequent originations were studied between January and June 2024. Performance on subsequent originations were studied between July and December 2024.

¹ https://thefintechtimes.com/bridging-the-banking-divide-the-rise-of-e-wallets-in-the-philippines/

² According to data from the Bangko Sentral ng Pilipinas (BSP), as cited in media report: https://www.bworldonline.com/banking-finance/2025/07/18/685852/bsp-to-step-up-financial-inclusion-efforts/;

³ TransUnion CreditVision^® risk score: Subprime = JJ to II; Near prime = HH to DD; Prime = CC; Prime plus = BB; Super prime = AA