Your credit card usage history and payment status are recorded as part of your “credit information,” which can significantly impact financial institutions’ approval processes.
If your credit information is positive, applying for credit cards or loans tends to go smoothly. On the other hand, poor credit information can make approvals more difficult and cause various inconveniences.

In this article, we’ll explain what credit information is, what actions can damage it, how negative credit information can affect your life, and whether it’s possible to recover from it.

What Is Credit Card Credit Information？

What Is Credit Information?

Credit information refers to data that records the status of your credit card and loan contracts, payment history, outstanding balances, and more. Financial institutions and credit card companies use this information to assess an applicant’s ability to repay debts.

For example, if you consistently pay your credit card bills on time, this positive history will be reflected in your credit information and will work in your favor when applying for future credit cards or loans. On the other hand, if you have payment delays or undergo debt settlement, this negative information will be recorded, making it more difficult to secure new credit contracts.

The Three Major Credit Information Agencies in Japan

In Japan, there are three major credit information agencies, each with different affiliated financial institutions and types of information recorded.

1. CIC (Credit Information Center Corporation)
   • Mainly affiliated with credit card companies and consumer finance companies
   • Manages information on credit card payment history and loan contracts
2. JICC (Japan Credit Information Reference Center Corp.)
   • Affiliated with consumer finance and installment sales companies
   • Manages information on personal loans and cash advances
3. KSC (The All Japan Bank Personal Credit Information Center)
   • Affiliated with banks, credit unions, and cooperative financial institutions
   • Manages information on mortgage loans and bank-issued card loans

These agencies share information with each other, meaning that any negative record entered into one agency’s system can be confirmed by the others as well.

Causes of Damaged Credit Information

When certain financial issues occur, they are registered as “negative information” on your credit record, effectively putting you on what is commonly called a “blacklist.” This can severely impact your ability to get approved for new credit cards or loans, so it’s important to be aware of the causes.

Main Causes of Credit Damage:

1. Long-Term Delinquency on Credit Cards or Loans

If you are late in paying your credit card or loan for 61 days or more (or over 3 months), it is recorded as “delinquency” in your credit information.
Even after paying off the debt, the delinquency record remains for 5 years, making it difficult to secure new credit during that period.

2. Debt Settlement (Bankruptcy, Individual Civil Rehabilitation, Voluntary Arrangement)

When you are unable to repay your debts, processes like bankruptcy, individual civil rehabilitation, or voluntary debt arrangement will severely affect your credit record.

• Bankruptcy remains recorded for up to 10 years
• Individual civil rehabilitation and voluntary arrangements remain recorded for up to 5 years
  After undergoing any form of debt settlement, it becomes extremely difficult to get approved for new credit cards or loans.

3. Substitute Payment by a Guarantor Company

If you default on mortgage or card loan payments, the guarantor company may repay the debt on your behalf through a process called substitute payment.
When this happens, it is recorded as a “financial accident” on your credit report and remains there for 5 years.

4. Missed Payments on Smartphone Installment Plans

When you buy a smartphone through an installment payment plan, it is treated the same as a loan agreement.
If you miss payments for over 3 months, the delinquency is recorded in your credit information, which could prevent you from using installment plans to purchase smartphones in the future.

What Happens When Your Credit Information Is Damaged?

When your credit information is negatively affected, it can impact many aspects of your daily life. In particular, restrictions on credit card and loan usage significantly limit your financial options.

You may not be approved for credit cards or loans

If your credit record includes negative entries (e.g., payment defaults), it becomes difficult to get approved for new credit cards or loans.

• Credit card applications may be denied
• You may be restricted from using cash advances or card loans
• Applications for mortgages or auto loans may be rejected

You may not be able to pay for a mobile phone in installments

When purchasing a new phone, you may be unable to use installment plans for the device, which means you’ll have to pay the full amount upfront—potentially putting a strain on your finances.

You may be denied a rental housing application

Nowadays, many rental properties require approval from a rent guarantor company.

• Credit-based guarantor companies will review your credit information, so if you’re on a “blacklist,” approval becomes difficult
• Independent guarantor companies may not check credit information, making approval more likely

Negative credit information can cause inconvenience in many aspects of life. That’s why it’s important to act carefully when facing issues like delayed payments or debt restructuring.

Your credit information is a critical record of your payment history and plays a major role in determining your eligibility for credit cards and loans.

The main causes of damaged credit information include long-term payment delays, debt settlements, guarantor company repayments, and missed mobile phone installment payments. Once a negative record is registered, it typically remains for 5 to 10 years.

This not only makes it difficult to obtain new credit cards or loans, but also affects your ability to purchase a smartphone on installments or rent a home.

In the next section, we’ll take a closer look at how to recover your credit information.

How to Recover Your Credit Information

Even if your credit information has been damaged, it can recover over time. However, until that happens, you may face inconveniences like being unable to get approved for credit cards or loans. This section explains how long it takes for credit records to recover, ways to speed up the process, and what you can do while waiting.

1. How Long It Takes to Recover Credit Information

Negative records registered with credit bureaus are automatically deleted after a certain period, depending on the type of incident:

• Long-term delinquency (61 days or more): 5 years after the debt is paid off
• Voluntary debt settlement (negotiated via a lawyer or judicial scrivener): 5 years after the settlement
• Individual civil rehabilitation or bankruptcy: 5–10 years (individual civil rehab: 5–10 years, bankruptcy: 7–10 years)
• Substitute payment (when a guarantor repays your debt): 5 years from the date of payment

Once this period has passed, the negative record will be deleted, and your chances of passing credit or loan screenings will improve.

2. Ways to Speed Up Credit Recovery

Generally, you have to wait for the deletion period to pass. However, the following actions may help speed up recovery:

Correcting Errors in Your Credit Report
If your credit report contains incorrect information, you can request a correction from the credit bureau. For example, if a delinquency record remains even though you’ve paid off the debt, you can file a disclosure request with CIC, JICC, or KSC, and ask the lender to update the record.

Applying the Statute of Limitations
Debt has a statute of limitations, and repayment obligations can expire after a certain period:

• Consumer loans/credit card debt: 5 years since the last payment
• Bank loans: 10 years since the last payment

If the statute of limitations has passed, asserting it (called “invoking the statute of limitations”) may help you remove the debt from your credit report. However, this requires legal procedures and isn’t always accepted by lenders, so it’s best to consult a lawyer.

3. What to Do While Waiting for Credit Recovery

While waiting for your credit to recover, it’s important to make adjustments so your life isn’t disrupted.

Choose Properties with Lenient Guarantor Screening
Some rental properties require rent guarantor companies. Credit-based guarantors (e.g., JID, Orico Forrent) check your credit history, whereas independent guarantors (e.g., ZENHORREN, Nihon Safety) often do not. Look for properties that work with independent guarantors for easier approval.

Use Prepaid or Debit Cards Instead of Credit Cards
You may not be able to get approved for a new credit card while your record is damaged. Use these alternatives:

• Debit Cards (linked to your bank account, payments are deducted immediately)
• Prepaid Cards (you load funds in advance and use them like a credit card)

Both can be used for online shopping or utility bill payments and require no credit screening.

Review Your Finances to Avoid New Delinquencies
Avoiding new negative records is key to recovery.

• Cut unnecessary expenses and adjust fixed costs
• Use household budget apps to track payment due dates
• Set up automatic bank withdrawals for bills to prevent missed payments

By improving your financial habits, you’ll be ready to use credit again once your record is clean.

Building Your Credit History After Recovery

Even after your credit information has been cleared, you may not immediately qualify for regular credit cards. Since you will essentially start from zero, rebuilding your credit history (credit score) is crucial.

Getting Approved for a Credit Card After Recovery

Avoid applying for high-limit cards or loans right away. Start with credit cards that have easier approval criteria and use them responsibly.

Choose Credit Cards with Easier Approval

With no credit history, standard cards may reject your application. Consider the following options:

• Retail-affiliated cards (e.g., AEON Card, Rakuten Card): relatively lenient screening
• Secured credit cards (e.g., Life Card with deposit): issued after placing a deposit as collateral
• Family cards (issued under a parent/spouse’s account): approval depends on the main cardholder’s credit

Build Trust with Small, Consistent Usage

After recovering your credit:

• Use the card for small purchases (¥1,000–¥10,000/month)
• Pay the full balance on time each month
• Avoid revolving payments—stick to single-payment plans
• Use your card for utility bills or phone plans to show consistency

With this routine, your credit strength can improve in 6–12 months, making you eligible for better credit options.

Safe Ways to Rebuild Credit

To avoid repeating past mistakes:

• Set up automatic payments for your credit card and utilities
• Use bank account auto-withdrawals to prevent missed payments
• Regularly check your credit report to track recovery progress

How to Check Your Credit Report in Japan

You can request a disclosure from Japan’s credit bureaus:

• CIC : Online or by mail (¥1,000)
• JICC : Mail or smartphone app (¥1,000)
• KSC : Mail only (¥1,000)

If you find incorrect records, you can request corrections to help speed up your recovery.

Summary

Long-term payment delays or debt settlements can damage your credit information, making it difficult to get approved for new credit cards or loans. However, negative records are automatically deleted after 5–10 years, allowing your credit to recover.

After recovery, don’t immediately apply for high-tier credit cards. Instead, start with easier-to-approve cards, use them for small payments, and pay on time to gradually rebuild trust.

Use auto-payments to avoid delays and regularly check your credit report.
By patiently and consistently managing your finances, you’ll eventually regain access to larger forms of credit, such as mortgages and auto loans.