kid625.com | What is your credit history in Japan?kid625.com | What is your credit history in Japan?

Building a credit and trust is one hell of a trouble in Japan.
As all of you may know, your credit score is used in such case like when you buy a car, house, apply for loan, etc. Obviously with good credit, you can obtain more loan or trust than a person with bad credit from financial institutions.
Now, Japan is fucked up. Check this out.
1) Paying back your credit card company doesn’t do anything dramatic to your credit history , but if you don’t pay back on time frequently, you’re on the black list. If you want to get better limit/interest card such as gold/platinum/black (for ultra high net worth people), they determine it mostly by your income, and your savings. Maybe your popularity, too?? j/k.
2) If you’re a female who wants to get a loan to buy a house, follwing things are the bank’s concern.
a) Banks determine if you can qualify for a loan by your gendor (male or femal). If you are a female, banks worry about who is gonna pay back the loan when if the woman is pregnant, or even get married… So if you are a woman, you have a higher hurdle to get the loan amount you need.
b) Banks determine if you can qualify for a loan by your age. Apparently, if you are not a full-time employee in a same company for less than 3yrs, then you suck. You can never buy a house. (I’m little extreme, sorry) Also if you are over 50yr (guessing the numbers) old woman, pretty much your dream home is gone.
c) Banks also determine by the name brand of the company you work for. So if bad news pops up on the day you go to bank, you are our of luck buddy. What if the dude next to you with same criteria gets more loan because he is in a rival company of yours, but it has more brand image…he gets more loan??
3) Another disappointing thing is, if your parents is devorced, then your trust for the banks are not that good, too. Because you don’t have a stable family to back you up when you can’t pay back. Thats messed up…
Criterias such as age, income, savings, etc are important in other developed countries as well, but these measurement of one person’s credit strength is quite disapointing.
I might be little exagerating things here, but I am trying to paint a picture here that says enough.
So Japan banks are cleaning up their debts, making lending to small-mid size company more strict (they say they are easing it, but not sure about that), but definitely banks are not changing the system or standards to depict people with strong payment power. Is that why the sketchy money lending business own by yakuza are profiting, and becoming a social problem?? Is that why more young people are using consumer financing service like “Promiss”, “Takefuji”, “Mujin-kun”, etc ??
At lease the standard services like obtaining milage, insurance, and points through credit cards are becoming standard…
FYI, here is a interesting article how banks in Japan are changing, and are starting to look into new credit-scoring model on higher level. Click Here (Sorry if the link is broken…)
However, on the consumer level, people are still going to find dificulty until they actually see and experience the changes…

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