Prepaid VISA Card from Shinsei

Get started building a credit rating

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One common problem for people new to a country is their lack of a credit rating. This makes it hard to get loans or apply for credit cards.

I got my first credit card here a couple of years after arriving -a Saison credit card from one of the people getting sign-ups in Seiyu supermarkets.

I’m not sure why they accepted me (was hearing a lot of stories of people getting turned down flat around that time), but I suspect that my motorbike loan and mobile phone plan helped, as well as having my fiance sign on as guarantor.

Once I had that card, when I got into air miles and hotel points I applied for (and got) a lot of high-level (gold and platinum) cards. I don’t recall ever being turned down -they were happy to take my money for the annual fees 😉

So what can you do to build your credit rating? The main thing is to start paying for things in your name. Household bills, insurance, mobile phone plans (paying for phones in installments helps, as it is classed as a loan), taking out personal loans. It’s really important not to miss or be late with payments.

The longer you have been paying for things, the better and more solid your credit rating.

Another way to get started, and to enjoy the convenience of having a credit card, might be to get a prepaid card. It should be easier to get approved with a weaker credit rating. I heard about one such card from Shinsei Bank on Reddit last week.

I like Shinsei and use them as my main bank. Their Gaica card allows you to charge it from your bank account then use it like a normal credit card (you need to have a Shinsei bank account, but I would recommend that anyway).

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Using it domestically in yen seems to be a new service, and is free.
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Using it abroad in yen or foreign currencies incurs a fee (3.5% to charge the card with foreign currencies or 4% exchange fee for payments abroad in yen).

My take on the card is that it might be a good option if you are having trouble getting a normal credit card or don’t trust yourself to use a credit card responsibly.

Anyone have this or a similar prepaid card? How are you finding it?

16 Responses

  2. I don’t see why this would help your credit rating, as there’s no credit involved. Do you have any information to the contrary, or is this just speculation? The world of credit seems shrouded in mystery for the consumer.
    If you’re going with prepaid cards, I’d go for Line Pay because it gives 2% cashback on all spending.

    1. That is a very good point, adamu! I was assuming (and you know what that does -sorry Ming) that it would be counted as a card but there is no basis for that assumption. Eeek.
      My apologies for fuzzy thinking. Anyone know if there is a relationship between pre-paid VISA cards and credit ratings?

  3. I use an MUFJ Visa debit card. You can use it just like a Visa credit card but the money comes directly out of your bank account. No need to top it up etc.

    1. That is a great question, does anyone know the answer?
      The couple of times I have asked I was told that they won’t reveal it 😉

    2. Hello Jason
      There are 3 central credit reporting agencies in Japan, each charging a fee of 1000 yen to retrieve your own credit report.
      Google for 日本信用情報機構, 指定信用情報機関 or 全国銀行協会 but do be warned that they deal in Japanese language only.
      Hope this helps!

  5. I’ve been here since 1991 and have had numerous Japanese credit cards.
    I can’t remember when I got the first one but it was early on, and seemed very easy. I never had a sense of it being a hurdle. Maybe things were different then? (I arrived slightly post-bubble). Naturally, I had no credit rating. It may simply have been the fact that I had a steady income as a full-time company employee. (Wasn’t a particularly high income)
    Ben, intuitively I would think the motorbike loan is a bigger hurdle than the credit card.

    1. I think it was (at least partially) arranged through the motorbike shop, so they helped get it through. Remember it being very smooth.

      1. Yeah, that makes sense. When people buy cars the loans are typically through the dealership rather than directly with a bank. I guess it’s the same for motorcycles.

  6. A bit off-topic but I recently had the opposite problem.
    I recently bought a property in Canada with money from my family there. (Still unpacking the gift tax implications and strategies in Japan for that… will post about in the forums). My mom had to be a joint mortgage holder with me because I had no credit history in Canada. It was stunning how much of a non-entity I was… our mortgage advisor did a credit check and the only thing that came up was the contract on the SIM card I was using there! She strongly advised me to get a credit card ASAP. I had credit cards when I lived there, but that was 26 years ago so I guess such information evaporates.
    Due to my large-ish bank balance (which was money from my mom, for that house down payment) my bank readily approved my application for a credit card. I’m trying to use it a lot right now, even here in Japan.

    1. I have a couple of UK credit cards just in case for this very reason. Don’t really use them much, just ask them to increase the limit every year 🙂