Unfortunately that is not too far from the truth. However, there are various ways to increase your chances for approval.
Read on...
Like any financial product, getting a Japanese credit card requires wading through paperwork. The following are essential:
- A valid resident status in Japan and alien registration card or drivers license
- A Japanese bank account
- An inkan (印鑑), the same one you use for your regular bank account
- Tax forms, salary slips, and/or utility receipts (not required for all applications)
- A student ID from a domestic university or vocational school (if you are a student)
Credit cards are becoming standard fare in Japan and just about every major super market, airline, and shopping mall has their own branded card that has all sorts of points, perks, and goodies attached to it. Banks, of course, also offer their own.
Many department stores have tables were you can sign up on the spot (provided you have and ID and inkan) and just about every retailer has card applications on their website. However, if you apply online you will still have to fill out a form from the credit card company and present a valid ID copy.
Pointers for the Application Process
You may have heard horror stories of foreigners getting rejected purely on the basis of their foreignness. Unfortunately, there is a legal precedent in Japan for rejecting foreigners without permanent residence for financial products due to their potential flight risk. Yes, its unfair and it sucks.
When you apply for a credit card, the card issuer will do a credit check. The Japan Credit Information Reference Center Corp acts as a central clearing house for consumer credit data for all big banks and issuers general check this organization first to see if you have outstanding loans, missed payments, or other financial obligations.
What sort of credit reporting goes on here isn't exactly clear but it only involves your Japanese credit lines, so if you haven't been in Japan long then your shouldn't have any too much to worry about.
Some of the following factors can effect your Japanese credit worthiness:
- Having a home phone number - it may sounds silly but having a home number in addition to a mobile phone is seen as a big plus on credit applications since it indicates you are staying in the same place for a while. And don't try using a Skype number (anything starthng in 05) since the dialing prefix will give it away.
- Living in the same place - almost every application will ask how long you have lived in your current residence and what type of housing it is. People who live in a rental unit and have just hopped off the plane or changed locations are considered bigger credit risks. It pays to settle down for some time before applying for a card.
- Working for a private company/on a short-term contract - many foreigners in Japan who teach at public schools work for hakengaisha (派 遣会社), or dispatch firms like Interac. Japanese financial institutions tend to view this form of employment as a risk since you can be fired essentially at will and you don't have access to the same benefits as contracted company employees.
- Permanent Residency/Spouse Visas - Those who have PR will have a lot easier time getting credit due to the fact that you are not seen as a flight risk. Plus, if you are married to a national then you can have your wife apply for you and get a family credit card.
- Big Banks - Banks in Japan are big credit card issuers but they are very, very conservative with their credit portfolios. Even if you have been banking with them for ages, there is a good chance you could face rejection just based on your foreignness. Try for an independent credit card issuer instead.
- Alien Card - Most foreigners use the Alien Card as the primary form of ID. However, this card contains the length of your residence status in Japan. If you only have a one year visa, this might be considered a turn off to potential issuers. Try using a driver's license, insurance certificate or other valid ID instead.
- Lying - Don't fib on the application. Japanese card issuers often call your house to verify if you live there, as well as your boss to make sure your job and salary information is in order. Some card companies might even ask you to present proof of income like a tax form or salary slip.
- Applying for Multiple Cards in Short Order - Avoid applying for one card after another. Banks can see your past applications and having a lot of rejections and outstanding applications dings your credit eligibility. If rejected, cool your heels and wait for a bit.
- Big Name Cards - Certain cards such as American Express and some department store credit cards cater to wealthy clientele so it is best to avoid them all together. JCB branded cards have a reputation for being much easier to get than Visa and Master Card brands so try them first.
Finally, if you are a student, don't forget to check and see if your university has a deal with a card issuers. The University Co-op Association seems to have a deal worked out with Mitsui-Sumitomo Card Co. for a student-only credit card that is relatively foreigner friendly. Other card issuers have similar student cards if you have a valid ID. While these are by no means a sure bet, its a good place to start if you are a student.
The whole application process may seem very intimidating but once you know the basics it gets much easier.
Don't get frustrated if you get rejected a few times and don't let anyone tell you foreigners can't get credit cards here (this author has two already).
The whole application process may seem very intimidating but once you know the basics it gets much easier.
Don't get frustrated if you get rejected a few times and don't let anyone tell you foreigners can't get credit cards here (this author has two already).
Check back soon for our next installment where we will show you how to fill out a model application.
If you already have a credit card from your home country, they should still take it like any other card right?