Why it may be easier to be approved for a credit card if you already have an account with the issuer (2024)

When you apply for a credit card, issuers consider a number of factors, such as your credit score, credit history, income and monthly rent or mortgage payment.

Though these all influence your approval odds, there's another factor you might not be aware of.

If you already have a good relationship with your bank or credit union — meaning you have a checking or savings account and no history of overdrawing on your account— you may find that it's easier to qualify for a credit card with them.

Below, CNBC Select explains why you might want to apply for a card issued by your bank and what you should consider before applying.

How applying for credit with your bank may help you get approved

Visiting the bank where you already have an account with may help your chances of getting approved for a credit card because they already know you and may feel more confident extending you a line of credit, especially if this is your first credit card.

It's always smart to shop around for the best credit card based on your credit score and your financial capacity, butBruce McClary, a spokesman for the National Foundation for Credit Counseling (NFCC), tells CNBC Select that there are some circ*mstances where you may have extra incentives to start with the financial institution where you already have an account.

"This may be especially true if you have a less than stellar credit history but have an account in good standing," McClary says. "That credit issuer may be more likely to consider your recent account history with their credit card as an overriding factor against other past credit setbacks related to other accounts. The more recent your financial troubles, the less of a guarantee that your creditor may be as flexible as you might like."

Depending on how good your banking relationship is, it may even help you score a better interest rate, lower fees, a longer promotional financing period or a sign-up bonus if you are approved for the credit card. Make sure to ask about any benefits for new applicants. Some issuers waive annual fees or offer statement credits for new cardholders.

If you get approved, having a credit card at the institution where you already bank could also make it easier to pay your monthly bill on timesince you can simply transfer funds between accounts versus between issuers, and it removes the hassle of having to set up a different profile on another issuer's website.

What to look out for when applying for a credit card through your bank

Once you ask a representative at your bank about opening a credit card, you'll want to first review any card offers before officially applying. You should compare any card offer with what is advertised online or any offer you may have received in the mail.Remember, applying for new credit requires a hard inquiry on your credit report, which can temporarily ding your credit score a few points.

If you anticipate having a difficult time getting approved for a credit card and want to see what your bank can offer, it may help to know what CNBC Select ranked as the best credit cards for bad credit, fair and average credit and for building credit.

Below are just a handful.

  • Best for low deposit: Capital One Platinum Secured Credit Card
  • Best for low interest: DCU Visa® Platinum Secured Credit Card(Membership to the Digital Federal Credit Union is required.)
  • Best for no credit check: OpenSky® Secured Visa® Credit Card
  • Best for no fees: Petal® 2 "Cash Back, No Fees" Visa® Credit Card
  • Best for cash back: Capital One QuicksilverOne Cash Rewards Credit Card
  • Best for travel and for average credit: Capital One Platinum Credit Card

Don't miss:

  • Here's who's eligible for a credit card and what factors card issuers consider when you apply
  • These are the 5 best credit unions for all your banking needs in 2020

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit cards. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage ofcredit cards,bankingandmoney, and follow us onTikTok,Facebook,InstagramandTwitterto stay up to date.

Information about the DCU Visa® Platinum Secured Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Petal 2 Visa Credit Card issued by WebBank.

Click here to view the Cardholder Agreement for the OpenSky® Secured Visa® Credit Card.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Why it may be easier to be approved for a credit card if you already have an account with the issuer (2024)

FAQs

Why it may be easier to be approved for a credit card if you already have an account with the issuer? ›

How applying for credit with your bank may help you get approved. Visiting the bank where you already have an account with may help your chances of getting approved for a credit card because they already know you and may feel more confident extending you a line of credit, especially if this is your first credit card.

Are you more likely to get approved for a credit card through your bank? ›

f you have a positive banking history with your bank or credit union, you may find it easier to qualify for a card. In any case, take the time to review the APR and fees of any card you consider, so you know what the card will cost you.

Does bank account balance affect credit card approval? ›

Your bank account information doesn't show up on your credit report, nor does it impact your credit score. Yet lenders use information about your checking, savings and assets to determine whether you have the capacity to take on more debt.

Is it easier to get a credit card from your bank? ›

Applying for a credit card with your bank can make the process easier. The financial institution you bank with will already have your information available, and you may be able to quickly apply through your online account or in-person with a bank teller.

What determines if you get approved for a credit card? ›

Credit scores

They're not the only factors considered when it comes to credit card approval, but they are important. Credit scores can serve as a risk indicator to lenders, letting them know how likely it is that you'll repay your debt.

How do you increase your chances of getting approved for a credit card? ›

As lenders tighten requirements, improve your chances of getting a new credit card with these 4 tips
  1. Pay all your bills on time. ...
  2. Be able to show employment or some type of cash flow. ...
  3. Apply for a secured credit card. ...
  4. Monitor your credit score for any changes.

What credit score do you need to get approved for most credit cards? ›

A credit score of about 700+ will likely qualify you for just about any credit card, including those with cash back rewards, lower annual percentage rates (APRs) and more. However, there are plenty of cards you can get with a score lower than this (more on that later).

What credit card is the easiest to get? ›

NerdWallet's Easiest Credit Cards to Get of June 2024
  • OpenSky® Plus Secured Visa® Credit Card: Best for No credit check and no bank account required.
  • Chime Secured Credit Builder Visa® Credit Card: Best for No credit check + flexibility and guardrails.
  • Mission Lane Visa® Credit Card: Best for Unsecured card for bad credit.

Is it easier to get a credit card with your current bank? ›

If you already have a good relationship with your bank or credit union — meaning you have a checking or savings account and no history of overdrawing on your account — you may find that it's easier to qualify for a credit card with them.

Which bank approves a credit card easily? ›

The Discover it® Secured Credit Card is our top pick for easiest credit card to get because it's geared toward those with limited/poor credit. It offers great rewards and charges a $0 annual fee.

Why won't Capital One approve me? ›

Some common reasons for not getting approved for a credit card include: Having a low credit score. Having too much debt. Having too many hard inquiries on your credit reports.

How much does Capital One approve you for? ›

There is no general starting credit limit for Capital One credit cards. Your credit limit will be based on your creditworthiness once your application has been approved.

What is the easiest way to get a credit card? ›

You may have an easier time getting approved for a secured credit card, which uses a cash deposit you make upon approval to "secure" your line of credit. Some of the best secured cards offer cash rewards, flexible deposit amounts, and the chance to upgrade to an unsecured card (and get your deposit back).

Is it smart to get a credit card from a bank? ›

Getting a credit card from your bank can be a great way to continue building your financial profile and credit history as well as earning valuable rewards. It can also be easier to qualify for a credit card from an issuer you already have a good relationship with.

Does having money in the bank help you get a credit card? ›

If you're new to credit, money in your bank account might help you by serving as a security deposit for a secured credit card or secured loan.

Is it good to get a credit card where you bank? ›

Depending on how good your banking relationship is, it may even help you score a better interest rate, lower fees, a longer promotional financing period or a sign-up bonus if you are approved for the credit card. Make sure to ask about any benefits for new applicants.

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