How Necessary is a Credit Card?

8 comments

1. This is a copy of your post for archive/search purposes.

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   **How Necessary is a Credit Card?**

   I currently do not have any credit cards and live 100% on cash/debit card. Applying for a CC is difficult because I am unemployed for the imminent move and they want proof of income and I’d prefer not to sign up for a card with bad rates/fees or with cosigners just for the sake of having one. On a previous trip to Japan I was rejected for signing up for a sim card/pocket wifi because they demanded I have a credit card. How necessary is it for moving/living there and what problems might I run into?

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2. In general, you won’t have an issue with daily life things in Japan. You can pay your bills at the conbini. You can do financial transfers through the ATM. You may have issues ordering things online, buying apps, paying for cell phone plans— but sometimes you can do COD or pay at a conbini. But since you don’t have a credit card currently I’m assuming you’re used to having those issues.

   That said, having a credit card gives you some peace of mind when traveling/living abroad, but if you have piles of cash reserves then I suppose that could suffice as well.

3. Most mobile companies that offer the cheapest plans require a credit card as they don’t allow debit cards, but there are options like ahamo that accept automatic withdrawal from your bank account.

   Honestly the only thing that I need a credit card for is my IIJMio sim. The rest is just convenience.

4. I got a credit card and it’s been very helpful. My JP post Bank cash card cannot be used for a number of things when paying online. It sucks.
   So yes, I recommend a JP credit card. Some will even give you free money when signing up. It’s very helpful for me. It also saved my life when I was changing jobs and low on money one month.

5. I didn’t apply for a credit card until my fourth year in Japan. I had no trouble registering a mobile phone plan (NTT Docomo) nor pocket wifi (Wimax) before that. They accepted my debit card.

6. If i remember correctly, it’s most necessary for signing up for a phone plan.

   For online purchase there is a virtual credit card that you can buy in konbini, it works like a amazon gift cards. But mind that it doesn’t always works and you can’t use it for subscription service.

7. When you have a residence permit, you can open a bank account in Japan. Many banks also issue a debit card, so you don’t have any problem with purchasing online.
   It’s hard for people from abroad who haven’t worked in Japan long to have a credit card issued by a Japanese credit card company.

8. Not really that necessary, there’s tons of alternative payment methods you can use. Others have mentioned mobile providers that might have restrictions. What I found was the GO Taxi app, one of the most popular taxi apps, also doesn’t accept anything other than credit cards, which was annoying until I got one (only needed it very rarely, and cash is always an option).

   The main problem is that some banks do not offer debit cards at all(my bank, Shinsei, doesn’t, for example – but they do offer a prepaid card which works fairly well in most situations), and from what I hear, many of the banks who do, will reject your application for one until you’ve been a resident for a year.

   Traditional banks by default will only issue you a cash card that you can use to withdraw and deposit money at the ATM, unlike other countries where you get a debit card by default. This was a huge culture shock to me when I moved here.