Credit Scoring and Reporting in Japan (2025 Guide)

Quick Facts

Japan has no singular credit score; instead three bureaus (CIC, JICC, and the Personal Credit Information Center) aggregate credit histories. The bureaus share data via the CRIN system. As of 2024 about 70% of credit card applicants are approved. You can request your CIC report online or by mail for ~¥500–¥550. Late-payment "delinquency" marks stay on file 5 years; a bankruptcy notice can remain up to 10 years.

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Credit Bureaus, History, and No FICO-Like Credit Scoring System

Japan's credit system relies on three information bureaus rather than a FICO-like score. These are the Credit Information Center (CIC), the Japan Credit Information Reference Center (JICC), and the Personal Credit Information Center operated by the Japanese Bankers Association (also called KSC/PCIC). CIC was established in 1984, JICC in 1986, and the bank-based PCIC in 1988. These bureaus collect loan and credit card data (contracts, balances, payment status) and share it via the CRIN network. Crucially, Japan has no nationwide credit scoring system – lenders instead review an applicant's bureau records (payment history, outstanding balances, applications).

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2025 Credit Card Approval Rates and Loan Approvals

Exact approval rates aren't published by financial institutions, but surveys give a clear picture. A 2024 Japan Credit Association study found that of 4,082 credit card applicants, 2,964 were approved – implying roughly a 70% approval rate and about 30% rejection rate. In other words, roughly 3 in 10 applicants are turned down. (Performance varies by bank and borrower profile.) The survey suggests approval is common for those with stable employment and clean payment histories, and rejections mainly occur for applicants with thin income or past delinquencies.

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Obtaining Your Credit Report (Fees and Steps)

All three bureaus allow individuals to request their credit report. CIC (the Credit Information Center) offers both online and mail-in disclosure. The fee is about ¥500 + tax. For example, CIC's website instructs you to pay a "disclosure voucher" of ¥500 via credit card or convenience-store payment. Alternatively, you can buy a ¥550 disclosure ticket (開示利用券) at a major convenience store's kiosk (7-Eleven, FamilyMart, Lawson). You then mail the voucher along with a completed form and ID to CIC; the report arrives by registered mail in ~1–2 weeks. For instant access, CIC's Tokyo office (Shinjuku) even provides on-site disclosure – visit with your ID and ¥550, and get your report printed in about 20 minutes. (CIC's online service is convenient when available, but note it's been temporarily suspended at times.)

JICC (Japan Credit Information Reference Center) similarly allows credit-report requests. Its fees are around ¥1,000 (tax incl.) for either online/smartphone requests or mail. JICC even offers an official smartphone app (see below) to request and view your report. The bankers' PCIC/KSC organization (for bank loans) also permits disclosures, typically by mail only, at about ¥1,000.

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Negative Records: How Long They Stay

Negative entries remain on your file for years. As a rule, late-payment or default records are kept for 5 years. For example, CIC's policy is that credit-contract information (including delinquent payment history) is retained during the contract and 5 years after its termination. JICC likewise holds standard negative data (late payments, debt restructurings) for 5 years after resolution. More serious "financial accident" records like bankruptcies or court defaults are retained longer. In practice, a consumer bankruptcy listed in government gazettes can remain on file for up to 10 years. (In short, don't expect a "bankruptcy clear" in just 5 years – it's typically a decade.) All bureaus automatically purge expired data as soon as the retention period lapses.

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Building Credit as a Foreign Resident in Japan

For newcomer and foreign residents, establishing a positive credit history takes planning. Useful steps include:

• Get a secured or first credit card. Some banks offer deposited credit cards (you lodge cash as collateral) specifically for foreign residents. For instance, the Nexus Global Card is a deposit-style Visa that guarantees you will cover the balance. Using such a card responsibly (paying the balance in full each month) starts a credit history.
• Pay all bills on time. Monthly obligations like a smartphone contract or utilities should be paid promptly. In fact, signing up for a mobile phone on installments is one of the easiest ways to begin a credit record. Always enroll bills (phone, electricity, water) on autopay when possible and never miss a payment – timely payments are visible to lenders even if utility companies don't report directly to bureaus.
• Use credit for daily expenses. Whenever you pay by credit card (instead of cash or debit), you are building payment history. Even prepaid cards or debit cards do not build credit. Only borrowing (credit) counts.
• Leverage rent-guarantee companies. In Japan, foreign residents often need a rent guarantor to lease an apartment. Guarantee companies (like GTN, Nihon Safe, Orico) act as a surrogate guarantor by charging a fee. Using one of these firms can ease the rental process for a foreigner (landlords accept it quickly). Note, however, that rent payments to these companies generally are not reported to credit bureaus, so they mainly help with housing rather than directly boosting credit scores.
• Gradually apply for mainstream credit. After 6–12 months of on-time payments, try for a basic Japanese credit card. Credit card options like EPOS Card, Rakuten Card or MUFG/JCB cards are known to approve many foreign residents with a clean record. Use them responsibly (pay in full each month) to further establish trust. If your first applications are rejected, wait a few months rather than reapplying immediately.

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How Lenders Evaluate Creditworthiness

Japanese lenders combine bureau data with their own criteria. Key data points include:

• Payment history: Long delays (通常61日 or 90 days late) trigger a negative flag. In fact, CIC/JICC mark any three consecutive months of non-payment (symbols A~C) as an 「異動」 record. Once 異動 is logged, future credit applications will almost certainly be denied. Always avoid letting any debt go unpaid for over 60 days.
• Current balances vs. limits: High credit usage (owing near your credit limit on one or more accounts) can signal risk. Lenders prefer lower debt ratios.
• Number of recent inquiries: Each time you apply for new credit, a bureau "inquiry" is noted. Too many inquiries in a short time (with few actual new accounts opened) is a red flag. As one forum note cautions, multiple unused credit checks will hurt your approval chances. Keep applications spaced out.
• Employment, income, and stability: Lenders routinely consider your job and salary. For newcomers, having steady employment at a well-known company and a solid salary greatly improves approval odds. By contrast, part-time work or a very new job may lead to rejection even with a clean record.
• Domestic ties: Permanent residency or a long-term visa and a local bank account also help. Lenders view "white-collar" jobs and long-term residency as indicators you're less likely to leave without repaying.

Some financial institutions also use proprietary scoring models that weight these factors (for example, digital-only lenders may assign a "virtuous behavior score" from varied data). One example is "彩スコア" (Sai-Score), a model that may incorporate personal profiles and payment data (though details are proprietary). In any case, avoid any red flags: a recent late pay, bankruptcy, or very frequent credit churn will trigger a rejection.

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Accessing Your CIC Report: Step-by-Step Guide

Via Convenience Store (Mail Request):

1. Go to a convenience store (7-Eleven, FamilyMart, Lawson/MiniStop). Use the in-store kiosk (e.g. Loppi) to purchase a Disclosure Ticket for "简易书留, ¥550".
2. Obtain CIC's individual disclosure application form (available to download from their website or pick up at the store).
3. Fill in your details (name, phone, ID) and attach a certified ID copy and the ticket voucher.
4. Mail everything to CIC (Tokyo).
5. In ~1–2 weeks you'll receive the Credit Information Disclosure Report by registered mail.

Via CIC Website: (If available)

1. Call CIC's disclosure hotline to get an application ID code by phone.
2. Go online to CIC's portal, enter your ID and pay the ¥500 fee by credit card.
3. Once verified, CIC will email you a one-time access code or PDF of your report the same day. (Note: CIC's online portal has periodically been suspended; check the official CIC site for status.)

In-Person (Shinjuku Office):
CIC's Tokyo branch can issue reports on the spot. Bring your ID and ¥550 to their center in Shinjuku. They will print your disclosure report immediately (roughly a 20-minute process). This is the quickest way if you need results same-day.

(For JICC, the smartphone app lets you submit an application, verify identity, and pay the ¥1,000 fee entirely on mobile. KSC/PCIC requires mail-in only.)

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Bureau Data Sources (Mini-Table)

Bureau	Type of Data Collected	Reporting Institutions
CIC	Installment credit and card contracts, payments	Credit card companies, consumer-goods finance firms
JICC	Unsecured loans (consumer finance) and credit cards	Consumer finance companies (ノンバンク), credit card firms
KSC (PCIC)	Bank loan and credit information	Banks, shinkin/cooperative banks, bank-affiliated CC firms, credit-guarantee associations

Each bureau collects from its member lenders: banks report to KSC, consumer-loan firms report to JICC, and credit-card/retail lenders report to CIC. Through the CRIN network, basic personal information (name, DOB, phone) and contract/payment histories are shared across all.

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Case Study: New Grad ALT in Tokyo

Aug 2024 (Arrival): Yuki (ALT) opens a Japanese bank account and gets a smartphone contract (with docomo in installments).

Sept–Dec 2024: Yuki rents an apartment using a guarantor company (no credit used here). She sets her smartphone and utilities on auto-pay.

Jan 2025 (3 months in): Yuki applies for an EPOS credit card (known to approve foreign residents). With steady employment and a clean short payment record, she is approved for a ¥50,000 limit. She uses it for grocery and phone bills, paying it off in full monthly.

Apr 2025: After 6 months of good payment history, Yuki applies for a Rakuten Card (online). Her first attempt is initially declined (her report is still thin), but she improves her profile.

Jul 2025: After two more months of consistent on-time pay, Yuki successfully re-applies. She gets a Rakuten Visa with ¥100,000 limit.

2026 Onward: Over the next year Yuki keeps using her cards responsibly and increases her limits. By mid-2026 she can refinance her education loan or take out a small auto loan if needed, thanks to her 1.5 years of positive credit history. All along, she avoided any delinquencies. This timeline illustrates gradual credit-building steps – contract phone, secured card, timely payments – leading to the ability to get further credit.

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Debunking Myths and Mistakes

• Myth: "I'll build credit by using my debit card or by paying utilities." – False. Only credit (debt) accounts are recorded by the bureaus. Debit cards and cash payments leave no credit trail. Always use credit (or a loan) and pay it back on time.
• Myth: "Foreign residents can't get loans in Japan." – False. Foreign residents can obtain credit, provided they meet standard criteria. The key is stable residency (long-term visa), steady Japanese income, and good payment behavior. In fact, lenders don't treat you differently once you have a full-time job and a history. Demonstrating reliability (e.g. phone payments, card usage) over 6–12 months usually suffices to qualify.
• Mistake: "Applying for many cards at once boosts chances." – No. Submitting multiple credit applications in a short span can hurt you. Each application leaves an "inquiry" on your file, and too many without corresponding new accounts signals risk. Apply sparingly and for cards appropriate to your profile.
• Myth: "Japanese have secret advantages, I'll never catch up." – No. The system treats all consumers by the same rules. A transparent track record of on-time payments and reasonable usage (as shown on CIC/JICC records) is what matters. Anyone can build credit if they follow the rules and use credit responsibly.

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FAQs

Q: Does Japan use a credit score like FICO?
A: No, Japan has no nationwide credit score. Instead, credit histories are recorded at three bureaus (CIC, JICC, and PCIC/KSC). Lenders review your report data (contracts and payment records) rather than a single "score."

Q: How do I get my Japanese credit report?
A: You can request it from any bureau. For CIC, you can apply online or by mail. Fees are ~¥500 (online) or ¥550 (mail voucher). For JICC or PCIC, the fee is ~¥1,000 by mail or app. In practice, many people start with CIC (they provide an English-friendly site and fast service).

Q: How long do late payments and bankruptcies stay on my report?
A: Late-payment (delinquency) marks remain for 5 years after the debt is resolved. Bankruptcy or other legal default notices can stay longer – typically up to 10 years from the event. After that period the records are purged.

Q: Can paying bills or rent help my credit?
A: Utility and rent payments generally do not get reported to these credit bureaus. What helps is paying credit-based bills (like a phone installment contract or credit card) on time. If you pay your phone bill in installments via credit, that builds a record. But simply paying cash for rent/utilities won't show up on your credit report.

Q: What do lenders look at when reviewing applications?
A: They check your bureau records for any late payments (especially any 61-day+ defaults), your current debt levels, job/income stability, and how many recent credit inquiries you have. Major red flags are a "異動" default mark or numerous hard inquiries with no new accounts.

Q: Are foreign-issued credit histories recognized in Japan?
A: No. Japanese banks cannot see your overseas credit history. Everyone starts "blank." That's why initial approval depends on your current Japanese income and residency status. But once you start building a Japanese record, your foreign background is irrelevant.

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Useful Resources

• CIC English Disclosure Site: Official CIC page explaining the disclosure system. (This includes guidance on obtaining your report and interpreting it.)
• JICC Credit Info App (Android): Official JICC smartphone app with English interface for requesting your JICC report.
• Japan Bankers Association – Credit Bureaus: (Appendix 3) Overview of the three bureaus, their histories, and roles.
• JICC Website: Japan Credit Information Reference Center (日本信用情報機構) – contains disclosure application details. (Site is mostly Japanese, but the Google Play app link and support email are available for foreign residents.)
• Expat Guides: Articles like "How Does Japan's Credit System Work?" (Metropolis Japan) and Tokyo Cheapo's "Credit Cards in Japan: Guide for Expats" offer tips on applications and credit-building steps.

Sources: Official data and policies from CIC, JICC, the Japan Bankers Association, and consumer finance associations, as well as insights from industry guides. These ensure information is accurate as of 2025.