Credit awareness is key to improving credit card delinquency rate — CCAP

June 04, 2023

Filipinos have shown more maturity in terms of credit card spending according to the latest industry data.

Filipinos are becoming more responsible credit card owners according to the latest data from the Credit Card Association of the Philippines (CCAP). While it does not see Filipinos’ revenge spending letting up soon especially as inflation eases, the credit card industry expects the delinquency rate to continue to improve if the trend continues among Filipino credit card users.

Credit awareness is key to improving  credit card delinquency rate — CCAP

Credit awareness is key to improving  credit card delinquency rate — CCAP

According to the latest figures from the CCAP, the association of 17 major credit card issuers in the country, credit card delinquency rates have been on a downtrend since the pandemic. From 4.36% in the fourth quarter of 2019, the delinquency peaked to 8.37% during the pandemic in 2020 before falling to 4.03% in 2021 when mobility restrictions started to ease. 

The rate continued to drop to 3.32% in the same period in 2022 and to 3.26% in the first quarter of 2023. Card delinquency refers to the payment of less than the minimum amount of credit card debt for least three billing cycles.

Delinquency has been dwindling despite the 47% surge in gross billings to P410 billion during the first three months of the year compared with P279 billion in the same period in 2022. 

The first-quarter 2023 growth rate was the highest since the pandemic started in 2020 as Filipinos took to shopping, traveling, and buying goods after being on lockdown for nearly two years. The jump in credit card billings is an indicator of higher consumer spending, a major driver in the economy’s post-pandemic recovery.

“While Filipinos’ spending spree keeps the economic engine chugging along, we must bear in mind that a credit card is not ‘free money’,” CCAP Executive Director Alex Ilagan cautioned.

To convert Filipinos into responsible borrowers, CCAP has been conducting credit awareness programs for colleges and universities as well as companies since 2017. “Our aim is to educate them as early as possible so they know what credit is and how they can manage their credit cards well when they get theirs. Any organization, not just schools, can reach us for these enlightening seminars,” Mr. Ilagan said.

In its seminars, CCAP shares these tips on how to use credit cards wisely:

  • Do not use a credit card beyond one’s capability, only to repay the debt late. Spending beyond one’s means will result in unmanageable debt and additional charges that further inflate the balance.
  • Keep an eye on one’s total monthly spending to avoid exceeding the credit limit, as this can result in steep fees. A maxed-out credit card can also cause financial strain, especially for people who can only manage to make minimum payments each month. The minimum monthly payments will likely grow past the cardholder’s paying capability, causing them to miss their dues. A constantly maxed-out credit card will also hurt your credit score.
  • Settle credit card bills on time every month. Failure to meet payments results in late fees and other penalties. It is best to pay the total amount, or at least more than the minimum required payment, to prevent debt from ballooning due to accumulating interest.
  • Track billing cycles and due dates. Avoid accumulating interest charges and debt to maintain a good credit score. A credit card helps track one’s spending and spot any budget guzzlers one can do without.

As part of its awareness campaign, CCAP also marks Credit Consciousness Week every April 24 to 30, as per Presidential Proclamation No. 568, series of 1995. For those interested in its credit awareness programs, CCAP can be reached at

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