Credit Card Master: Episode 1 - Rakuten Card
A deep-dive into Rakuten Card: Uncover cashback perks, fee details, and the ease of getting one, even for foreigners, in my in-depth Credit Card Master review
Welcome to "Credit Card Master," the series!
My mission? To uncover the crème de la crème of plastic money in Japan.
Expect the lowdown on everything - from cashback perks, fee structures to the nitty-gritty of getting these cards (yep, including the hurdles for foreigners), and all the flashy benefits in between.
Our first stop? The famous Rakuten Card!
Table of Content
Types of Rakuten Cards
Key Benefits & Drawbacks
Ease of Acquiring the Rakuten Card (Especially for Foreigners)
Who is This Card For (and Who Should Stay Away)?
Credit Card Master Score
1. Types of Rakuten Cards
Let's break down what each card brings to the table:
Rakuten Card
The Rakuten Card is probably the most recognizable card in Japan. The standout feature? An incredible 1% cashback on every purchase, which is quite a steal for a card with no annual fee. It's a solid choice for regular Rakuten users, though the 1-million-yen credit limit might feel restrictive for some.
Rakuten Gold Card
Stepping up to the Rakuten Gold Card, the annual fee of 2,200 yen feels like a fair trade for a credit limit boost and the free ETC card. However, it's somewhat disappointing that the cashback points don’t increase with the upgrade – a missed opportunity, in my opinion.
Rakuten PINK Card
Rakuten PINK Card aims at a specific demographic with its women-focused benefits. It’s essentially the standard card with some extra frills. The absence of any boost in points here is a bit of a letdown, especially given its unique positioning.
Rakuten Premium Card
The Rakuten Premium Card is a high roller with its hefty annual fee of 11,000 yen. The perks are impressive for frequent travelers, but it’s a bit perplexing why the points system doesn’t escalate with the price tag. That would have made it an even more compelling choice for the premium spender.
2. Key Benefits & Drawbacks
As a credit card enthusiast, I appreciate a card that offers substantial rewards without overcomplicating things. That's precisely where the Rakuten Card stands out, particularly with its point system. But, like any card, it's not without its drawbacks. Let's dive into an objective analysis.
Benefits:
Exceptional Point Redemption Rate: The Rakuten Card's 1%-point cashback is one of the highest in Japan. For every 100 yen spent, you get 1 point. This rate is particularly impressive considering the versatility of Rakuten Points – they're almost like cash, usable in everything from Family Mart, McDonalds, Sukiya, ENEOS gas stations, and even to top up your Suica Card! Also, a lot of stores accepting Rakuten points also give extra points, allowing you to double-dip
These are a few of the stores you can use your Rakuten Points in Amplified Rewards with Rakuten Services: The card shines within the Rakuten ecosystem. You're looking at up to 3x points on Rakuten Market purchases and 2x on Rakuten Travel. The downside is that most of these sites suck! Rakuten marketplace is ok for purchases, but rarely cheaper than Amazon. Rakuten Travel is just garbage…
Rewards Beyond Rakuten: The card's utility isn't limited to Rakuten's own services. It fetches up to 2x points at partner stores and a 1.5% return when linked with Rakuten Pay.
Additional Perks: The card offers a choice of international brands, a variety of designs, robust security measures, and card theft insurance – a comprehensive package for a modern credit card user.
Drawbacks:
Not as Rewarding Outside Rakuten: Once you step out of the Rakuten ecosystem, the card's superpowers diminish. The reward structure is less exciting for non-Rakuten purchases.
ETC Card Fee: The annual 550-yen fee for the ETC card can be a bit of a bummer, especially if you're not a high-tier Rakuten member who gets it waived.
Dip in Utility Bill Rewards: The reduction in points for utility bills payments, from 1% down to 0.2%, was a significant blow, but hey, no other card I know off gives you any points for utility bills.
Customer Service Challenges: Difficulty in reaching the call center can be a real inconvenience, especially in urgent scenarios. Honestly, this is really bad sometimes, and Rakuten make sure to make it as hard as possible to even reach them… Just pray to the gods that you never need to talk to a human if you get this card.
Expiration of Periodic Points: The presence of time-bound points requires users to stay on their toes. This is super annoying! If you just got a bonus point top-up, they could expire in as little as a month!
3. Ease of Acquiring the Rakuten Card (Especially for Foreigners)
Application Process: While Rakuten is one of the most foreigner-friendly cards in Japan, it’s not all a bed of roses. The application process involves standard documentation like residence cards and Japanese bank accounts, but it's not foolproof. When I first tried as a new resident in Japan, I hit a roadblock. It seems you need a bit of history in the country to tip the scales in your favor.
Website and App Experience: The Rakuten website and app are a study in contrasts. Some parts look sleek and modern, while others seem stuck in the 90s, desperately needing an update. And if you're relying on English support, be prepared for a mixed experience. While there is some support available, expect to do a fair bit of Google translating. It's better than most Japanese companies, but it's not without its frustrations.
Approval Time: On a positive note, the approval process is relatively quick, usually around 1 to 2 weeks. However, this efficiency doesn't mask the initial hurdles in the application process.
Overall Impression: For foreigners in Japan, the Rakuten Card is an option worth considering, but it's not the seamless experience it's often made out to be. The no annual fee policy and rewards are appealing, but be prepared for a somewhat patchy journey, both in terms of application and navigating their digital platforms. As a credit card enthusiast in Japan, I appreciate Rakuten's efforts, but there's definitely room for improvement, especially in streamlining the experience for non-Japanese speakers.
4. Who is This Card for (and Who Should Stay Away)?
The Ideal Rakuten Card User
1. The Rakuten Aficionados: If you're someone who's practically living in the Rakuten universe, shopping on Rakuten Ichiba, or booking trips through Rakuten Travel, this card is like your best shopping buddy. Why? Because it showers you with points for every yen spent in the Rakuten ecosystem. And let's face it, who doesn't like a good points shower?
2. The Frugal Foreigners: Here's a shoutout to the savvy spenders from abroad! The Rakuten Card isn't just wallet-friendly with its zero annual fee; it's also one of the easiest cards for foreigners to get their hands on in Japan. This is especially true if you're not rolling in dough or if the idea of shelling out for a premium card makes you cringe. The fact that it's a 'Cost-performance Champion' among free credit cards is just the icing on the cake.
3. The Points Hoarders: Are you the kind who loves watching points stack up? Then this card will be your new best friend. Whether it's a coffee at the corner store or a shopping spree online, points seem to multiply like rabbits in your account. A 50-year-old user even gushed about how the card racks up points in everyday stores, online shopping, and even for answering surveys or doing online searches.
The Rakuten Card Misfits
1. The Rakuten Haters: Got beef with Rakuten's CEO, Hiroshi Mikitani? Then steer clear. Not only are the points primarily usable within the Rakuten ecosystem or its affiliates, but the company also has a knack for bombarding you with ads for their (let's be honest) sometimes subpar services. It's like being invited to a party you never wanted to attend.
2. The Simplistic Souls: If you're not a fan of navigating through a digital labyrinth, be warned. While Rakuten is trying to keep up with the digital age, parts of its website and app can feel like a throwback to the dial-up era. And if you're looking for English support, it's a bit like finding a four-leaf clover – rare but exists.
5. Credit Card Master Score: 7/10
Why a 7, you ask? Well, the Rakuten Card is like that blockbuster movie everyone talks about – it's got the glitz, the glamour, and the allure. But when you look closer, you realize it's not winning any Oscars.
The Good: If Rakuten's your shopping playground, this card's your golden ticket, raining points on every purchase. For frugal foreigners in Japan, it's a no-brainer – easy to get, no annual fee, and a points bonanza on everyday spending.
The Not-So-Good: Not a fan of Rakuten's omnipresence? This card might feel like you're stuck in an endless loop of Rakuten ads. The reduced points on utility bills and the digital experience – part sleek, part retro – might not be everyone's cup of tea.
It's fantastic for Rakuten loyalists and a godsend for foreigners in Japan on a budget. The lack of an annual fee is like a cherry on top. But the limitations in the points system and its digital quirks hold it back from reaching that perfect 10. It's a solid choice, but not the unicorn of credit cards.
So, there you have it – a rollercoaster ride in the world of Rakuten, with more ups than downs!