srjebmSRJEBMSRJEBM2788-9505https://doi.org/10.47310/srjebm.2026.v06i02.006Digital Financial Competence in Credit Decision-Making: A Narrative ReviewHuda AmeenOleiwiMundher AbbasShaalanAl-Furat Al-Awsat Technical University- Technical Institute / Najaf, IraqAl-Furat Al-Awsat technical University-Technical college of management, Kufa, IraqWith the rise of digital technology and increasing connectedness of people, it has become crucial for customers to be able to use digital tools in making credit-related choices [1]. Nowadays, banking digitalization is reshaping the way people are provided with access to credits, making it necessary to talk about digital financial competency instead of traditional financial literacy [2]. However, even though this competency is becoming more crucial for customers, there are still many hindrances that stop people from making informed decisions about credits online, including low digital skills, cognitive biases, and lack of understanding of complicated financial products [3]. In this light, it is important to review major trends, challenges, and benefits connected with digital financial competency and credit decisions. An organized literature review was conducted utilizing thematic analysis of peer-reviewed research conducted during the last 10 years [4]. The research study utilizing thematic analysis helps in identifying trends and difficulties confronted along with the advantages available associated with digital financial literacy in credit decision making. Significant trends found out in the review include use of digital financial education, use of fintech technology, personalized finance messages, and use of digital platforms to access credit [5]. The problems reported in the review include lack of digital literacy, information overload, concerns relating to data security, reluctance in adoption of technology, and cognitive biases [2]. Advantages that the review highlights include improvement in decision making, access to credit, reduced risks, inclusion in finance, and responsible borrowing [1]. The study emphasizes the need for integrated digital financial education approaches that promote credit issuing as well as financial resilience and competitiveness in a changing economy [5]. In this respect, it forms a good basis for creating effective practices in digital financial competence that fit the requirements of financial transformation in modern times [6].