Does JAPAN Allow Foreigners To Use Their Credit Cards As Debit?

I was browsing the internet the other day when I came across a query on “Quora” about how to borrow money in Japan.

It is around 90,000 dollars when 1 million yen is converted to dollars. In Japan, 1 million yen is equivalent to three or four months’ pay for most full-time employees.

There may be many foreigners in Japan who suddenly find themselves in need of money. Let me explain to shed some light on the credit card loans offered by Japanese financial institutions for individuals strapped for cash.

  • Conditions for foreign nationals in Japan are screened.
  • Acceptable type of visa
  • Preparation for the application of documents or certifications.

According to PaydayNow, what matters is if an applicant can meet the requirements regardless of their nationality.

Non-Japanese aren’t the only ones who get special treatment because they’ve been here for a long time. Similarly, as other Japanese candidates are, your age, earnings, and savings are taken into consideration as part of the requirements.

A bank credit card loan, on the other hand, has more stringent terms and restrictions. Because Japanese central banks will only lend to non-Japanese applicants who can prove they are citizens of the country legally.

Consider a credit card loan from a consumer finance company if you have a steady income but do not have permanent residence status.

Things to keep in mind when applying for a credit card debt

When taking out a loan, you must always have a clear idea of how to pay it back. Anyone who takes out a credit card loan in Japan must consider their ability to repay it since this is the primary factor in the credit card loan screening process.

Determine your standard of loan value by how much of your income you would be able to take up a credit card loan as remaining solvency for repayment of debt principal and interest rate before deciding on your borrowing amount

The consensus is that a loan amount of 10 to 20 percent of your income should be the upper limit of your ability to pay back your debts after covering your basic expenses.

For example, if your annual salary is 300,000 yen, the maximum loan amount you can get is 600,000 yen. Keep this figure in mind as one of your requirements for a credit loan.

This is why Japan’s maximum credit card loan amount is usually fixed at 30 percent of a borrower’s yearly salary.

If you’re serious about getting a loan from a Japanese bank, the first step is to figure out how much money you make and how much money you spend.

Is it feasible for non-Japanese citizens to get a Japanese credit loan?

  • Become financially secure
  • To be a resident of Japan.

These are the fundamental requirements for all foreigners to live in Japan moderately. Depending on the credit card loan terms, every Japanese financial institution might select its specific screening criteria.

Some financial organizations, for example, use the condition of “living in Japan” to determine the length of stay, visa status, and length of service requirements for foreign workers.

For Japanese financial institutions to lend you money, you need to have lived in Japan for at least 20 years, worked for at least 15 years for a Japanese firm, and earned at least 5 million yen per year. What percentage of that do you have now?

Things to think about before you apply

  • Identification card for permanent residents
  • Perpetual certification of special status
  • Your non-Japanese ID or certificate is necessary as proof of your non-Japanese status.

You may not even require your Japanese resident ID card, depending on the banking institution. However, a residency card is required by most large banks and consumer credit companies that may be shown on television.

You may also be asked to provide a copy of your job certificate, depending on the loan amount. Depending on the circumstances, your employer may be contacted by the person handling your loan to confirm that you are employed there.

In the absence of residency status, may foreign nationals apply for a credit card?

The most significant consideration for non-Japanese citizens without a permanent residency visa when applying for a credit loan in Japan is how long you may remain here. You should figure out how much of your time in the country you still have left to repay your loan.

A typical credit card loan has a payback duration of around six years and nine months. There will be an 80-times-over payback. After this time, your payback term is automatically extended if you cannot fulfill it.

It’s possible that, as long as you’re in Japan, the number of your monthly repayments may have to be increased within your financial means to finish the repayment process till you return home.

One of the screening points for a Japanese financial institution is determining whether or not you can pay back the loan while in Japan.

As a non-permanent resident, Japanese financial institutions want to know that you plan to stay in Japan for as long as possible to repay your loans till your return home.

A credit card loan arrangement often ranges between one and two years. Non-Japanese citizens who plan to leave Japan within a year are unlikely to be approved for a loan. You should utilize cash advances from your credit card if you need money quickly during a short-term visit to Japan.

Income from “Permission For Other Activity”-permitted jobs are solely considered for loan screening in terms of “reliable income” for international students.

Don’t become involved in the black market loan business.

Does your organization provide all workers with a tax return and pay stub? The entitlement for all employees seems to be given. Some firms choose not to provide these certificates for secrecy’s sake. Non-Japanese employees working for a business with sloppy HR administration may not be available.

Tax returns and pay stubs, on the other hand, are critical documentation for credit loan screening. But individuals who don’t meet the requirements are enticed by a hook baited with birdlime that a loan might be granted without producing the required certifications.

A legitimate consumer credit organization would never skip over a step in the process. This is a popular tactic used by black market lenders to lend money at a high-interest rate unlawfully. If advertising is just interested in selling you anything, don’t bother reading it.

Financial institutions cannot provide loans if they impose conditions on the borrower. Your Japanese buddy is the best person to question whether a financing firm you’ve come across is a legitimate consumer finance company or a black market lender.

Marie A. Evans