Rakuten Credit Card: Is it Worth It? Rewards, Perks, and Drawbacks Explained

Rakuten Credit Card: Is it Worth It? Rewards, Perks, and Drawbacks Explained

by

Navigating Japan’s financial landscape as a foreigner can be a daunting task, especially when it comes to securing a credit card. A popular option that often comes up is the Rakuten credit card. But is the rakuten credit card worth it? This comprehensive guide dives deep into the world of rakuten cards, exploring its rewards, perks, and potential drawbacks to help you make an informed decision.

Table of Contents:

Why Rakuten Credit Card? Key Advantages

The rakuten credit card has gained significant popularity among foreigners in Japan, largely due to its attractive features. Let’s examine some of the key advantages that make it stand out:

A. Ease of Application:

Rakuten credit card has a reputation for being foreigner-friendly, boasting a relatively relaxed screening process compared to traditional Japanese banks. The application process itself is streamlined and entirely online, eliminating the need for in-person bank visits and cumbersome paperwork in Japanese.

A major plus for foreigners is the absence of a “hanko” requirement. A hanko, or personal seal, is often mandatory for official documents in Japan, but Rakuten does away with this, making the rakuten card apply process significantly easier for those who haven’t acquired one.

B. Rewarding Point System:

The rakuten credit card benefits are built around its generous point system. New applicants are often welcomed with a hefty sign-up bonus of thousands of points, directly translating into yen that can be used for purchases.

Adding to the allure is the sheer pervasiveness of the Rakuten ecosystem in Japan. You can use your rakuten points for shopping online at Rakuten Ichiba, for everyday expenses like eating at McDonald’s or buying groceries at affiliate stores, and even for booking travel accommodations through Rakuten Travel or securing tickets for events via Rakuten Ticket. The possibilities are vast.

The integration of a point card within the credit card itself makes point accumulation effortless. Every purchase at affiliate stores – and you’ll find the iconic “R” sign almost everywhere – earns you points for every 100 yen spent. This means constantly accumulating rakuten points for your daily spending.

Rakuten also collaborates with a plethora of partner stores beyond its own ecosystem, offering even more opportunities to earn and redeem points.

C. Fast Processing Time:

While traditional bank credit cards in Japan can take weeks to process, Rakuten prioritizes speed and efficiency. You can typically expect your rakuten credit card delivered to you within a week, allowing you to start reaping the benefits sooner.

Rakuten Credit Card Types for First-Time Applicants

Rakuten offers various credit card types tailored to different needs and preferences. Here are the options for first-time applicants:

A. Rakuten Basic Card:

This no-annual-fee card is the most common choice for those seeking a straightforward and cost-effective option. It comes equipped with the standard rakuten point earning system, allowing you to earn 1 point per 100 yen spent, with the potential to earn even more at Rakuten Ichiba. You can also choose to add the Edy function, a popular electronic money system widely used in Japan.

B. Rakuten Pink Card:

Designed specifically for female users, this card offers the same benefits as the Basic card but comes with customizable, aesthetically pleasing designs. Holding this card also grants you access to various Rakuten services and discounts curated for women.

C. Rakuten Gold Card:

This premium card, with an annual fee of 2,200 yen, offers a range of enhanced benefits. These include complimentary access to domestic airport lounges twice a year, potentially higher credit limits, and a boosted point earning rate at Rakuten Ichiba, reaching up to 5 times the standard rate.

Applying for a Rakuten Credit Card: A Step-by-Step Guide

Ready to get your hands on a rakuten card? Here’s a step-by-step breakdown of the online application process:

A. Creating a Rakuten Account:

Since Rakuten credit card is a part of the broader Rakuten ecosystem, the first step is to create a Rakuten account. This can be done directly on their website and is available in English, making it accessible for foreigners. If you already have a Rakuten account, for example, if you use Rakuten Ichiba, you can skip this step.

B. Accessing the Credit Card Application:

Once your Rakuten account is set up, navigate to the official Rakuten credit card page. You will find distinct buttons for new and existing Rakuten account holders. Click on the appropriate button based on your situation.

C. Navigating the Japanese Application Form:

While the initial steps are in English, the actual rakuten credit card application form is in Japanese. Don’t be discouraged! Here’s a guide to walk you through each section:

  • Card Brand Selection: Choose your preferred card brand – rakuten visa, rakuten mastercard, or rakuten amex.
  • Card Design Choices: Select your desired card design. The available options may vary depending on the brand you choose.
  • Name Entry: Enter your name in hiragana, kanji (if applicable), and romaji. The system will automatically fill in the romaji based on your hiragana entry.
  • Personal Information: Provide details such as your sex, birthday, phone number, and email address.
  • Address Details: Enter your complete address, including your postal code, chome, building name, and room number.
  • Family Information: Indicate your marital status and whether you have children.
  • Housing Information: Specify your housing situation, including whether you own or rent, the type of residence, and if you have a housing loan.
  • Employment Status: Choose your employment status – employed, student, pensioner, unemployed – and provide information about your yearly income.
  • Financial Information: Indicate your savings amount and your preferred bill delivery method (home or office).
  • Credit Card Usage: State your reason for applying for a rakuten credit card – for shopping, loans, or both.
  • Outstanding Loan Status: Declare whether you have any outstanding loans from other companies.
  • Edy Point Card Option: Choose if you want to add the Edy function to your credit card.
  • Bank Account Connection: Select whether you prefer to link your bank account online or through mail documents.
  • PIN Number Selection: Choose a PIN number for your card and enter it twice for confirmation.

D. Completing the Application:

Once you have filled in all the required information, carefully review the details and confirm that everything is correct. Click the “doui suru” button to agree to the terms and conditions, followed by the final red button to submit your application.

What Happens After You Apply

You’ve submitted your application – what’s next?

A. Handling Bank Account Linking:

If you chose to link your bank account through mail documents, Rakuten will send you the necessary paperwork. Fill out the forms, attach any required documents, and mail them back to Rakuten to complete the bank account linking process.

B. Awaiting the Identity Verification Call:

Within a few days of submitting your application, you will receive an email from Rakuten confirming receipt of your application. Shortly after, a Rakuten staff member will call you to verify your identity. Be prepared to answer basic questions to confirm the information you provided on the application form.

C. Receiving Your Rakuten Credit Card:

After the identity verification call, your rakuten credit card will be mailed to you. This is considered an important document, and you will need to be present to receive it in person. You cannot opt for mailbox delivery.

Is a Rakuten Credit Card Worth it? Weighing the Pros and Cons

To answer the question, “Is the rakuten credit card worth it?” let’s summarize the pros and cons:

Pros:

  • Ease of Application: The simplified online application and lenient screening process make it accessible for foreigners. The absence of a hanko requirement is a major benefit for those new to Japan.
  • Generous Rewards: The rakuten credit card benefits include a generous point system with a welcome bonus and ongoing points earned for everyday purchases. The vast network of Rakuten and partner stores where you can redeem your points makes them highly versatile.
  • Speedy Processing: You can typically expect to receive your card within a week, which is significantly faster than most traditional bank credit cards in Japan.

Cons:

  • Language Barrier: The application form is entirely in Japanese, which may be a challenge for some foreigners. However, this guide provides a detailed breakdown to aid you through the process.
  • Rakuten Ecosystem Reliance: To fully maximize the point system, you’ll need to actively engage with the Rakuten ecosystem and its partner stores.
  • Limited International Acceptance: While accepted at many locations within Japan, the rakuten visa card or rakuten mastercard may have limited acceptance compared to global brands like Visa or Mastercard issued by international banks, especially outside of Japan.

Frequently Asked Questions

Let’s address some common questions regarding rakuten cards:

  • What are some examples of popular stores where I can use Rakuten points?
    You can use your rakuten points at a wide array of stores, including Rakuten Ichiba, McDonald’s, convenience stores, drugstores, and many other affiliate stores bearing the “R” sign.
  • Can I use my Rakuten credit card overseas?
    Yes, both the rakuten visa card and rakuten mastercard can be used overseas, where Visa or Mastercard are accepted. However, be aware that there may be foreign transaction fees.
  • Are there any fees for using the Edy function on the card?
    No, there are usually no fees for using the Edy function on your Rakuten credit card.
  • How can I track the status of my Rakuten credit card application?
    You can typically track your application status through your Rakuten account by logging in with your rakuten credit card login credentials.
  • What happens if I lose my Rakuten credit card?
    If you lose your Rakuten credit card, contact Rakuten immediately to report the loss and have your card canceled and replaced.

Conclusion

The Rakuten credit card presents a compelling option for foreigners in Japan, particularly those seeking a user-friendly application process, an attractive rewards program, and quick processing time. However, the language barrier of the application form and the reliance on the Rakuten ecosystem should be taken into consideration.

Ultimately, whether a rakuten credit card is worth it for you depends on your individual spending habits and priorities. Weigh the pros and cons carefully to determine if it aligns with your needs. If you actively engage with the Rakuten ecosystem and are comfortable navigating the Japanese application process, the rakuten credit card can be a rewarding tool to manage your finances in Japan.