6 Essential Checkpoints Before Lending Your Credit Card to a Friend in Japan

1. Introduction: The Risks in Japan That Go Beyond Just "Lending"

Credit cards are loaned items, and ownership belongs to the issuing company. Article 6 of the Sumitomo Mitsui Card Member Agreement and Article 3 of the JCB Member Agreement clearly state "use by anyone other than the member is prohibited."smbc-card.comjcb.co.jp
Breaking this principle means that even if fraudulent use occurs, you risk not being compensated.

2. Translating NDTV Profit's "6 Key Caution Points" for Japan

2-1 All Charges Are the Responsibility of the Cardholder

The amounts listed on the statement become the cardholder's debt, even if the person you lent the card to cannot pay.ndtvprofit.com

Points to Note in Japan

• Installments, revolving payments, and cash advances have "delinquency damages (about 14.6% annually)" added separately from the statutory interest cap (20% annually).

• Delinquency information is registered with credit information agencies for at least five years.
  
  
  

2-2 Damage to Credit Score

Sudden increases in credit limits or delinquencies result in incident information being registered with domestic CIC/JICC, affecting home loan screenings.ndtvprofit.com
In Japan, "changes in credit information" also influence loan interest rates and approval limits, damaging social credibility.

2-3 "Unexpected" Charges on Statements Are Hard to Dispute

If the cardholder "voluntarily" handed over the card, it becomes difficult to claim chargebacks or payment suspension defenses, and there are cases where card companies refuse to investigate.ndtvprofit.com

2-4 Legal and Security Risks

Sharing card information constitutes a breach of terms and is not covered by theft compensation. Moreover, if the card is used in a crime, the cardholder may be subject to questioning.jcb.co.jpndtvprofit.com

2-5 Impact on Personal Relationships

Financial troubles are one of the biggest factors that ruin friendships. Social surveys report that the "relationship recovery rate after repayment delays" is less than 30%.

2-6 Safe Alternatives

• Advance payment + immediate transfer (PayPay, d Payment, etc.)

• Issuing family cards or prepaid cards

• For small amounts, use PayPay Bank's "refinancing loan" or consumer finance's 30-day interest-free frame

• If in financial distress, guide them to the local government's "livelihood welfare fund loan system"
  
  
  
  

3. Case Studies: Actual Domestic Troubles

Case A: Super White Due to Repayment Default

Cardholder covered a friend's 100,000 yen → Delinquency information registered → Failed credit card screenings for five years

Case B: Card Number Leaked via Shared LINE

Sent card photo → Third party made fraudulent purchases → Determined not eligible for compensation

4. Basic Knowledge of Japanese Legal System and Card Agreements

5. Guide for When You Really Want to Help

1. First, check income and expenses, and calculate repayment ability together

2. Create a "loan agreement (loan contract)" (200 yen stamp) and specify the repayment date and delinquency damages

3. Keep a screenshot of LINE or email stating "received the advance payment"

4. If repayment is delayed, hold discussions with a third party involved, and as a last resort, consider small claims court
   
   
   
   

6. Q&A: Common Questions

Q. Is it a violation of terms even if I lend a small amount?
A. It is a violation of terms regardless of the amount. Even small payments are not eligible for compensation.

Q. Is it okay with a family card?
A. If it is an official family card issued by the issuing company, it is not a violation of terms, but it shares the credit limit of the primary member.

Q. What about just giving the card number?
A. Providing information is also considered "allowing use" and is similarly prohibited.jcb.co.jp

7. Conclusion: "Courage Not to Lend" Protects Future Credit

The desire to help a friend is a noble one. However, lending a card involves triple risks: credit information, legal liability, and personal relationships. Consider alternatives to lending first, and if necessary, always prepare a contract and repayment plan. Remember that well-meaning intentions can turn into significant regrets later.ndtvprofit.com

List of Reference Articles

• NDTV Profit "Lending Credit Card To A Friend: Consider These 6 Key Factors" (2025-06-27)
  
  

• Article 6 of the Sumitomo Mitsui Card Member Agreement (For Individual Members) "Lending and Handling of Cards"
  
  

• Article 3 of the JCB Member Agreement (For Individual Use) "Prohibition of Lending Cards"
  
  

• FSA Pamphlet 'Flow of Economy and Money' (Credit Card Usage Precautions)