Access to formal credit remains both a challenge and an opportunity in the Philippine financial landscape, considering how, more often than not, credit scores are often overlooked in the public discourse.
It should be noted then that credit scores play a vital role in enabling wider participation in the financial system.
According to the 2024 Credit Perception Index (CPI) by TransUnion, only 54% of the unbanked population are familiar with formal credit products, a significant drop from last year and far below the 70% recorded among the general population.
Digital adoption is undoubtedly accelerating, but credit inclusion is lagging. Without a functioning credit profile, millions remain excluded from the most transformative financial products such as business loans, mortgages, and affordable credit lines that can drive long term economic mobility.
According to fintech platform JuanHand, credit score is more than a personal financial tool, as it is a market signal.
For lenders, it quantifies risk; for the economy, it channels capital where it is most productive. Strong credit profiles often unlock competitive interest rates, higher borrowing limits, and faster approvals, while weak or non-existent scores limit credit flow, particularly for underserved sectors.
