Question from a reader:
Hello. I am thinking of purchasing a car for commuting and considering a loan from Honda Finance. Actually, I had a delay in payment with Paidy in 2023, and I realized it when I received a demand letter from a lawyer. Currently, I don’t know what my credit information looks like, but I checked with JICC and
there were no issues. However, if there is a problem with CIC, will it not be reflected in JICC? Do I really need to get a disclosure from CIC as well? I apologize for my lack of knowledge, but I would appreciate your guidance.

The Importance of Credit Information and How to Check It

Now, I would like to delve deeper into the question from the reader. They are considering a loan from Honda Finance for purchasing a car for commuting. Additionally, they have a background of having experienced a delay in payment with Paidy and receiving a demand letter from a lawyer. Although there were no issues found in their credit information disclosure from JICC, they seem to be questioning whether it is necessary to also obtain a disclosure from CIC (Credit Information Center Co., Ltd.). First of all, credit information indicates an individual’s credit status and is crucial information that financial institutions and lending companies check when making lending decisions. It records past borrowing and repayment history, any delays in payment, and debt restructuring, so it is very important to understand your own credit information.

Differences Between Credit Information Agencies

In Japan, there are mainly three credit information agencies: JICC, CIC, and the National Personal Credit Information Center (KSC). Since the information held by each agency is different, it is necessary to obtain disclosures from all of them. Just because there are no issues with JICC does not mean there are no issues with CIC as well. For example, I have previously experienced obtaining disclosures from multiple credit information agencies. While there were no significant issues with JICC, I was surprisingly shocked to find a small delay recorded with CIC. This is because each agency independently collects and manages information. Therefore, I strongly recommend obtaining a disclosure from CIC as well.

Reasons to Check Credit Information

Why is it necessary to check credit information? It is because having a clear understanding of your credit status can affect future loan and credit card applications. In particular, when contracting an auto loan with Honda Finance, credit information becomes an important criterion for assessment. I have also hesitated in the past when taking out a loan due to concerns about my credit information. At that time, by actually obtaining a disclosure and objectively understanding my situation, I was able to wait for the assessment with peace of mind. It is important not to leave doubts and concerns unaddressed but to check them thoroughly.

The Impact of Delays in Payment

You also need to consider the delay in payment with Paidy that you mentioned. Delay information is recorded in credit information for a certain period, usually around 5 to 7 years. This means that if there is a record of past delays, it could potentially affect future credit assessments. From what I heard from a friend who has a history of delays, he was rejected when applying for a loan at a financial institution due to past delays. When there are delays, financial institutions tend to judge, “This person is not trustworthy,” making the assessment stricter.

How to Obtain Credit Information Disclosure

So, how can you actually obtain a disclosure from CIC? CIC allows for applications via the internet or requests for disclosure by mail. By preparing identification documents and filling out the necessary information, the process can be completed easily. I have previously used the internet to obtain a disclosure from CIC. The process was smooth, and the results arrived quickly, making it very convenient. When I checked the disclosure content, I was able to clearly understand my credit status and felt reassured.

Future Plans and Advice

Finally, let’s consider future plans. When purchasing a car, it is important to carefully calculate the necessary budget. If you are taking out a loan, you need to accurately assess your repayment ability. Especially if you have a history of delays, setting an unrealistic repayment plan could lead to further delays. I myself have had the experience of pushing myself to purchase an expensive car. As a result, repayments became difficult, and my life was pressured. When taking out a loan, I recommend calmly reviewing your income and expenses and creating a feasible plan.

Conclusion

Checking your credit information is an essential step in planning your finances. I strongly recommend obtaining a disclosure from CIC. Since past delays could affect assessments, it is crucial to understand your situation thoroughly and plan for the future accordingly. I hope you can check your information carefully and find a car that suits you with peace of mind.