Modecca Depo – Model Credit Secured Credit Card

I have heard foreigners complain that they are unable to apply for credit cards in Japan because they don’t understand the language, won’t be approved, etc.

Understanding the language is a point that in the long run you can only resolve by studying Japanese. There are a few financial institutions that support English, but you will always pay more for the privilege. Asking a friend to help you with the Japanese application is generally a better option. Putting that aside, there are some tricks and tips you should know.

1. If you’ve recently moved to Japan, apply for a card you already have overseas. American Express is a good example. If you apply in person and mention that you have an Amex card overseas already, they will likely put a note on your application and it will probably be approved. I know people for whom this has worked.
2. Apply for a department store card. For many department stores such as Marui, you can apply for a store only card and the acceptance criteria are lower than for a card with Visa, Mastercard, etc. This is a good option is you have stable employment with a Japanese company and haven’t moved or changed jobs recently. After a year or so they will usually offer to switch you to a global brand card. They will report your usage to the credit reporting agencies in Japan, meaning after you use this card for a few years, you should be able to apply successfully for other cards.
3. Deposit Type cards. If you are self-employed or otherwise don’t have a steady income and haven’t established credit already, this is a good option to get started building credit in Japan.

In the category of deposit cards, there are numerous options, but the cheapest is Model Credit Deposit Card, abbreviated Modecca.

Card	Brand	Annual fee	Point rate	Deposit range
Nexus Card	Mastercard	¥1,375/2200 (+¥1,100 issuance)	0.50%	¥50,000 – ¥2,000,000
Nexus Card Global	Mastercard	¥2200 (+¥1,100 issuance)	0.50%	¥100,000 – ¥2,000,000
Luxury Card Titanium Deposit-Type	Mastercard	¥55,000	1.00%	¥300k–¥99M
Nissenren JCB Card Deposit	JCB	¥3,300	0.50%	¥100,000-¥300,000
Deposit Type Life Card	Mastercard	¥5,500	0.50%	¥30k–¥1.9M
Modecca Depo Card	JCB	¥1,375 (+¥1,100)	0.10%	¥30k–¥3M

Things to note:

• Nexus Card Global is marketed specifically at foreign residents and pitches applying without a Japanese bank account by paying the deposit. This is the only one we know of with English support. The approval rate is lower than the others, but their application page is here: https://mydeposit.nexuscard.co.jp/
• Luxury Card is the high end: a metal card with concierge, Priority Pass and dining privileges, where the deposit runs from ¥300,000 up to ¥99,000,000, aimed at people who need large limits but can’t pass a conventional screening.
• Modecca and Nexus Card have the lowest fees, but Modecca has a lower starting deposit. You can start with as little as ¥30,000 and add more later, which makes it easy to start if you just need to pay for small items. Modecca also claims to have a 95% approval rate.
• You can also use Prepaid cards and/or Debit cards instead, but deposit cards are good for building credit. Also note that certain merchants will only accept “real” credit cards, and deposit type cards are generally accepted in this case.

Account Creation Process

1. Visit: https://www.modecca.co.jp/ and apply on-line. You must register your postal address, email address, and Japanese mobile phone number as part of the application process. They will send a one time password to your email address to confirm that it is valid. You also need to decide on a password for logging into your account. They will send another email with your application number confirming your application once you finish the last page, so make sure to note this down for later.
2. Once your application has been provisionally approved, they will send you an SMS with a link containing payment information. When you open the link, there will be a payment number that you can use to pay at a convenience store or you can pay online through logging into your online banking account if your bank is supported. (This works similarly to Pay-easy).
3. After you have paid they will formally approve your application and send you an email with your user name and the URL to log into the web service. They will also ask you to log in and set up 3D Secure. This mainly consists of setting up the phone number you want to be used to confirm purchases. (It doesn’t have to be the same as the contact number you filled in during the application phase).
4. They will mail the card to you using delivery confirmation. This means the post office will check your ID.

Once the card arrives, you can use it immediately, but like other deposit cards, you will only be able to use it up to your deposit amount. They will deduct the amount you used each month on the 27th. Sadly, it is not possible to change this date. Please see their page for further details on the billing cycle.

Advantages:

• Easy to pass the credit requirements (Most applicants accepted)
• Low yearly membership fee
• Low starting deposit (You can get started with Just $300)
• Helps build credit
• Prevents over-spending

Disadvantages:

• Your deposit money is essentially dead capital. It doesn’t earn interest, and you can’t spend it.
• The direct debit date is the 27th, and can’t be changed.
• Despite the fact that they have your money in the form of a deposit, anything other than a one time payment still incurs interest – so make sure to pay off the balance in full each month!
• Only JCB brand available