How to Get a Credit Card as a Foreigner

Many people assume that because Japan is mostly a cash based society, credit cards have little value. This is a huge misconception and having a credit card in Japan can be very advantageous and you can start receiving benefits for the purchases that you're already making now. They can be used in most places including department stores, convenience stores, supermarkets, and most restaurants.

However, many foreigners in Japan shy away from applying for a credit card, either because they don't want to bother with the long, Japanese application, or they already assume that they'll be rejected right away. Although it is true that it's much harder to make a credit card as a foreigner than a Japanese person, there are ways to greatly increase your chances, which we will show you in this article. In addition, after obtaining your first card, it's much easier to get accepted for more credit cards, so you can diversify your benefits. 

In this guide, we explain the whole process, explaining the benefits, basic requirements, tips on increasing your chances, and listing out credit cards that are easier to get for foreigners. 

Benefits of Having a Credit Card

There are many benefits to having a credit card. One is that you can start to collect points for purchases that you're already making now and convert it into various uses such as mileage or shopping points. Having a credit card also allows you to make online purchases such as Amazon, plane tickets, or automating your utility bills, which you can't do with cash. 

Some credit cards also have unique benefits such as free travel insurance and exemption from ATM withdrawal fees. Here is a list of some of the benefits that credit cards can offer.

• ​​Receive points or mileage for everyday purchases
• Make online purchases and reservations such as Amazon, rental cars, plane tickets, shinkansen, etc.
• Set up automatic payment for utility bills (and receive points for it)
• Exemption from ATM fees for certain banks when owning their credit card
• Travel insurance 

What Credit Card Companies Are Looking For

When your application is reviewed by the credit card company, they're ultimately looking for reasons why they should or should not trust you with their card. Just by being a foreigner, we are automatically at a disadvantage because the credit card company assumes that we can go back to our home country at anytime while skipping a payment. Therefore, our goal is to dispel this fear and gain their trust through our application. 

Here is an example of an ideal candidate who has a good chance of getting accepted for most credit cards:

• Has lived in Japan for at least a year.
• Holds a long term visa with several years still remaining.
• Shows that he/she intends to stay in Japan for a long time.
• Works at an established Japanese company with a great number of employees and has a decent salary.
• Pays their phone bill on time (explain later). 
• Has some sort of family connection to a Japanese person, whether its a spouse or relative.
• Speaks a good amount of Japanese.

Again, this is the profile of an ideal candidate and this is just to give you an idea of what the credit card company is looking for. Essentially, we want to show the credit card company that we intend on staying in Japan as long as possible, are capable of paying on time, and that our income source is reliable. 

How to Increase Your Chances

Apply for an "easy" card first

The first card will always be the hardest one to get accepted for. You don't have any credit history in Japan yet and just by seeing your name, they can see that you are a foreigner. Go for credit cards that are either known to have an easy acceptance rate or are from non-Japanese companies. We listed some of the most foreigner-friendly cards in a later section below.

Bank cards are the hardest to get accepted for

With some exceptions, the screening process for credit cards by big banks are known to be the most strict ones. The screening process for department store cards and cards targeting students tend to be more lenient so we recommend applying for those if its your first card. 

Treat it like a job interview

Whether you're applying in person or you get a confirmation phone call, treat it like a job interview and show the card company reasons why they should accept your application. Imply that you intend to live in Japan for a long time and give them reassurance that you are capable of making consistent payments. If you're a student, show that you're financially supported by a dependable source, whether it's from school grants or from your family.

Apply in person if possible

Most applications are online but if there's an option to apply in person, we recommend doing so and bring a Japanese friend that you trust. There are lots of specific questions in the application and one common reason for rejection comes from misunderstanding the question. When you're filling out the application online, you won't know if you filled it correctly or not until the results are already decided. By applying in person, you can receive feedback from the teller and your Japanese friend can help explain if you have any questions.

Apply to only one credit card at a time

This is probably the most important advice here. Credit card companies in Japan share information and know when you've applied to multiple credit cards at the same time. No matter how great you look in your application, applying to multiple credit cards at the same time can result in an automatic rejection. 

Pay Your Phone Bills On Time

If the previous advice was the most important, this is probably the second most important advice. There's no official credit score system in Japan, so your phone bill becomes your source of "credit". It may not seem like much and you're only paying a couple 1000 yen per month for it, but the weight of this bill is significant. Avoid delinquency charges to your phone bill at all cost.

If you get rejected, wait

If you get rejected, don't apply for another card right away. Credit card companies can see that you've been rejected recently and reject you again. Wait at least 6 months, pay your bills on time, and apply again. It can also be a good idea to call the card company and ask why you got rejected, so you can correct any mistakes for your next application. 

Which Credit Card Should I Apply For?

There are many factors to consider when choosing the right card. Even if it's your first card, there are lots of different cards with various benefits that are also foreigner friendly. Here are a couple points to think about when choosing your first. 

Foreigner Friendly Card

Your first credit card application should be with a card that's known to accept foreigners. However, if you already own a credit card and you've paid your bills on time, then you have a much better chance at other cards and can pick based on what type of benefits you would like to receive. 

Where do you spend your money?

You'll be able to maximize your benefits by making a credit card that's related to your frequent spending. You can either choose a card that can use points here or gain more points by shopping here. 

Here are some ideas for different places to earn and use points.

• Rakuten
• Amazon
• Waon points (Aeon Mall/My Basket)
• ANA mileage
• JAL mileage
• Free travel insurance

Reward Rates

After choosing the type of benefit, you'd want to choose a good reward rate. As a general rule of thumb, 0.5% is probably the average reward rate and 1.0% is a good percentage. Anything above 1.0% is considered even better and might not be likely for your first credit card or is often one with annual fees.

In addition, some offer a higher percentage by making purchases at their respective company. For example, the Aeon card offers double points for shopping at Aeon mall and Rakuten offers triple points for shopping at Rakuten's online shop. 

Hidden Annual Fees

After narrowing your choices down to a couple, it's time to read the fine prints. Some credit cards are advertised as having no fees only for the first year and set a certain condition to clear fees the following year. These credit cards aren't necessarily bad and some do come with great benefits, but it's good to be aware of all the conditions before deciding on a card. 

Canceling a Credit Card

In order to cancel a credit card, you first pay your current balance either through the web or through an ATM. Then, you can make a request to cancel your credit card through the phone, web, or in person. If you're moving back to your home country, we recommend spending up your existing points before canceling your card.

Conclusion

Getting a credit card as a foreigner in Japan is not impossible. It just takes a slightly different approach and requires more research. If you get rejected, don't worry and try again in 6 months. Although our tips can raise your chances of getting accepted, there is also a lot of luck involved as well, so nobody has a 100% chance. It may take some time but the benefits can be worth it later on. 

Remember that the first card is always the hardest one to get. Once you get accepted for your first card and paid enough bills, it should be a lot easier the second time around.