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? ›

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.

Does having a checking account with a bank make it easier to get a credit card? ›

Furthermore, because a checking account is often required to make credit card payments, having an account before you apply may help your odds of approval. If you have a checking account, you may be more likely to receive prequalified offers for credit cards.

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

If you have a positive banking history with your bank or credit union, you may find it easier to qualify for a card.

Can you apply for a credit card if you already have one? ›

It's not only possible, but it can be a great way to deepen your relationship with one specific bank and take advantage of their card rewards and benefits. However, if you decide to apply for a second card with the same credit card issuer, there are a few things you'll want to consider.

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 through your own bank? ›

Is It Easier to Be Approved for a Credit Card From Your Bank? One of the main reasons you might want to weigh the credit card offers from your regular bank is that you already have a financial relationship with them. That might even make it easier to get approved.

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. Plus, Discover will conduct monthly account reviews after seven months to see if you qualify to get your deposit refunded.

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

We break down 10 tips that can help you improve your chances of getting your credit card application approved.
  1. Check your credit score. ...
  2. Keep your credit utilization low. ...
  3. Correct errors on your credit report. ...
  4. Apply for credit cards that fit your credit score. ...
  5. Look for cards with preapproval. ...
  6. Pay your on bills on time.
Dec 22, 2023

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

Credit bureaus rate your creditworthiness based on many factors, like the number of recently opened accounts and your payment history. Card issuers typically look at scores and your credit history when you apply for a credit card. The better your scores, the more likely you may be to get approved.

What credit card is the easiest to get? ›

Easiest credit cards to get approved for
  • Best for unsecured card: Capital One Platinum Credit Card.
  • Best for students: Discover it® Student Cash Back.
  • Best for no annual fee: Citi Double Cash® Card.
  • Best student dining card: Capital One SavorOne Student Cash Rewards Credit Card.

Does being denied a credit card hurt your score? ›

A hard inquiry from a card application can cause a small, temporary drop in credit scores. A denial or approval won't hurt your credit scores, because decisions aren't reflected in credit reports. When making lending decisions, card issuers use credit reports and credit scores to determine creditworthiness.

Will Capital One give me a second chance? ›

Capital One Reconsideration

If your application for a Capital One credit card is denied, Capital One may give you a second chance through its reconsideration process.

What is the 5 24 rule for Chase? ›

Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

Who approves credit card applications? ›

A bank approves or denies a credit card application based on a number of factors, including the applicant's credit history and financial stability.

What is 90 chance of approval for a credit card? ›

90% – 99% chance of approval

This means that you're very likely to be approved for a loan or credit card based on what you've told us. Usually, the lender will need to do a few final checks on their side to fully approve your application. Very likely to be approved for this offer if you apply.

Do banks look at your transactions when applying for a credit card? ›

Credit card companies may request bank statements during the application process for a new credit card or loan to verify your income and assess your financial stability. However, this requirement varies by lender and specific circ*mstances.

Does a checking account help build credit? ›

Your checking account usually has no impact on your credit score. Normal day-to-day use of your checking account, such as making deposits, writing checks, withdrawing funds, or transferring money to other accounts, does not appear on your credit report.

Do you need a bank account in the same bank to get a credit card? ›

If you are applying for a credit card from a bank with whom you have an account, it is easier to get one. But in many cases, customers can get a credit card without having a bank account with the issuing bank.

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

Bank cards tend to be a better option for everyday expenses but could also have a few drawbacks. Pros: Typically, lower interest rates and higher credit limits. Robust fraud protection.

Are credit cards tied to your checking account? ›

Credit cards are also issued by banks but require a separate application process. You don't have to keep an account at that bank to apply. Rather than being linked to a bank account, credit cards have a credit line that the user can borrow against, usually up to a certain preset limit.

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