- June 8, 2024
- Posted by: legaleseblogger
- Category: Related News
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# Confusing Case regarding Credit Card Upgrade
## Introduction
Hi all,
I ran into a case that confused me a bit.
## Background Information
Context:
I have been living in Japan for 10+ years (in my 20s) and have been using SMBC Credit Card for 7+ years. I also have Permanent Residency (PR) in Japan. Initially, I started with the standard card, then upgraded to the gold card, which I have been using for the last few years. I have maintained a flawless payment record and even have a mortgage worth 60M+ with MUFG. My salary falls in the range of 10-11M and I have been employed at a start-up for 1.5 years (not my first job).
## Current Situation
Recently, I decided to upgrade from the SMBC Gold Prime to the Olive Platinum Preferred card. I applied for the upgrade at the bank and was verbally assured by the staff that there should be no problem with the approval. Upon receiving the card, I was able to use the debit mode immediately. However, after two weeks, I received a rejection for the credit mode, essentially rendering my platinum card as just a fancy looking debit card.
This rejection came as a surprise to me as I have never missed a payment and have a long credit history with SMBC, along with stable employment.
## Seeking Help and Information
I am wondering if anyone has faced a similar situation before where they were rejected for a credit card upgrade. If so, were you able to obtain more information on the reason for the rejection?
I also speculate that the rejection could be due to my company still being in the red financially. However, this is just a theory.
Moreover, I would like to know if it is possible to re-apply for the upgrade soon or if there is a waiting period required.
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****** just grabbed a
Some reasons I can imagine being the reason:
– The card is a different brand (Visa, Mastercard, Amex). You need to pass their screening too.
– Your mortgage and existing card credit is high so they don’t want to issue more credit as the total debt load would be too high for your income. (I’m guessing the minimum credit line on a preferred card is very high, so they can’t choose to issue it with a smaller limit)
– Something silly like a name mismatch because of middle names or katakana representation.
Usually the process is automatic and sadly startups are seen as high risk in their models. 1.5 years is also pretty short. Both of those can hurt your overall score. To state the obvious, Platinum cards are stricter than Gold.
I could never get a card when I worked at a ベンチャー企業, then hey presto was accepted for everything when I joined a major zaibatsu later in my career. Even multiple applications got accepted. This just a possible factor not something that would usually be that significant (it was for me because I had no card at all).
They won’t ever tell you why it was rejected. It could be anything.
The advice I’ve seen on Japanese blogs is to use the card you want to upgrade from heavily and reapply six months later. I’d also apply online from within your SMBC account so there’s no mistakes in your identity.
You can pull your credit history from the three credit bureaus to see if there is anything there that might have triggered the rejection. You have to pull all three because while some info may be on all the reports, other info may not.
> Also wondering if you were able to re-apply soon or had to wait a while?
Rejections stay on your credit history for 6 months. Any credit applications within the next 6 months are likely to be auto-rejected because of this. So, it would be advisable to wait 6 full calendar months before you apply elsewhere. Assuming you got rejected in April, then don’t apply for anything else until into November. Or just pull your credit report after ~200 days and make sure it has fallen off before you apply for anything else.
I’d request disclosure from CIC before re-applying to make sure I have no bad credit record.
[https://www.cic.co.jp/mydata/online/index.html](https://www.cic.co.jp/mydata/online/index.html)
if you change your job or address recently it can effect. 1.5 years at same job is considered to be quite short.
SMBC is a weird bank. With them I have:
* a business account with an “owners” credit card
* a personal account with a gold credit card
* a home mortgage
My card limit with SMBC is 70万円 and I’ve been rejected multiple times when requesting a limit increase. I don’t know what makes them reject my requests but I’m fairly certain it’s not income. They’re weird.
I was approved for over 80 million yen loan by SMBC, part of getting loan involved opening an olive smbc account. Upon opening the account I applied for the card because why not. I was instantly rejected.
Apparently they can risk a 500k usd loan but not a credit card with probably a 500,000 jpy limit.
The lady at the bank said try applying again on 6 months. It’s all rubbish.
Somehow it looks like an unusual problem (middle name or katakana spelling mismatch), why issue a card and two weeks later kind of take it back half-heartedly. Or they genuinely didn’t like the startup which didn’t come up in the automatic pre-approval, but only later manually.
In general, every credit card company has their internal rules which customers they prefer and also which are risky. Judging from common sense, any bank could just grant you a lower credit limit at the beginning and then increase it to be safe. But obviously this is not the case, perhaps you are not in their target group or they think they can only make money with you when they are able to grant you a high limit (taking more interest for late or revolving paybacks).
If someone is working in that field here in Japan, I would be looking forward to some insight.
I couldn’t buy an iPhone due to credit refusal despite a similar profile to you. I am sure it was a hiccup with my middle name and stupid Japanese financial systems. A lost of systems and processes just don’t handle our names. Not much we can do about it.
If you have a high amount of debt (like a mortgage) this can scare away creditors from giving you more space for more debt than they think you could pay off. Maybe that’s what happened?
Just handle that casually. But why you want to upgrade your card?
One of my card is the AEX from Mitsuisumitomo shopping mall card (membership fee required I pay for travel insurance coverage). I use this card to buy international tickets for my job (usually 200k each) and after few tickets they just mailed me a postcard for gold card upgrade and giving credit of over 2m. I was quite surprised why they just throw out so much credit I don’t even give any income prove for them.
I’ll get downvoted for this, but I don’t care because more people need to see this.
YOU DON’T NEED A CREDIT CARD.
You are far more likely to spend more – buying more, or buying more expensive things – when you pay on credit. This effect is observed *even when subjects are aware of it*. You think those companies give you points and such for free because they hate money? You think stores put up with the card company’s fee because they hate money?
I haven’t had a personal credit card in 30 years and have had zero issue anywhere Ingo, including rental cars overseas and hotel stays, etc. Debit cards work just fine.