A numerical indicator that quantifies an individual's creditworthiness, used in credit card and loan screening to evaluate repayment ability and willingness. In Japan, three agencies - CIC, JICC, and the Japanese Bankers Association Personal Credit Information Center - manage credit information, recording delinquency history and borrowing status.
How Credit Scoring Works and Japan's Credit Information System
Japan's credit information system differs from the unified numerical scoring of the U.S. FICO score. Instead, each financial institution conducts its own screening based on transaction history (credit history) accumulated at credit information agencies. CIC (the designated credit information agency under the Installment Sales Act and Money Lending Business Act) records credit card and mobile phone installment payment histories, JICC (Japan Credit Information Reference Center) records consumer finance usage histories, and the Japanese Bankers Association Personal Credit Information Center records bank loan histories.
The recorded information includes contract details, outstanding balances, payment status (normal or delinquent), and the dates delinquencies occurred and were resolved. Delinquency records remain for 5 years after resolution, and during this period, new credit card applications and loan screenings are adversely affected. The colloquial term "blacklist" refers to the state of having delinquency information registered.
Practical Tips for Maintaining a Good Credit Score
The fundamental practice for maintaining good credit information is making all payments on time. This applies to every payment recorded in credit information: credit card debits, mobile phone installment payments, student loan repayments, and more. Even a single delinquency leaves a record, so managing the balance in your debit account is essential. To prevent failed debits due to insufficient funds, set the debit date to the day after payday, or consolidate into a main account if funds are spread across multiple accounts.
You can check your own credit information by requesting disclosure from each credit information agency. CIC offers instant online disclosure (500 yen fee), and JICC accepts applications through its smartphone app. Make it a habit to check your credit information once a year to verify that no erroneous information has been registered. If you find borrowings you do not recognize, there may be identity theft involved, and you should promptly report it to the credit information agency and the police.
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