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)
Top Articles
Election 2024: School holidays and summer election clash
Understanding "jerk off" Idiom: Meaning, Origins & Usage - CrossIdiomas.com
Knoxville Tennessee White Pages
Black Gelato Strain Allbud
Gabrielle Abbate Obituary
Mikayla Campino Video Twitter: Unveiling the Viral Sensation and Its Impact on Social Media
Imbigswoo
Celsius Energy Drink Wo Kaufen
Tamilblasters 2023
Walgreens On Nacogdoches And O'connor
Tripadvisor Near Me
Mills and Main Street Tour
Tygodnik Polityka - Polityka.pl
Pretend Newlyweds Nikubou Maranoshin
3476405416
Zoe Mintz Adam Duritz
Accident On 215
Jeff Now Phone Number
How your diet could help combat climate change in 2019 | CNN
Project, Time & Expense Tracking Software for Business
Lakers Game Summary
Veracross Login Bishop Lynch
Morristown Daily Record Obituary
Boston Dynamics’ new humanoid moves like no robot you’ve ever seen
What Time Does Walmart Auto Center Open
Imouto Wa Gal Kawaii - Episode 2
Utexas Iot Wifi
Prep Spotlight Tv Mn
R Baldurs Gate 3
Nearest Ups Ground Drop Off
Encore Atlanta Cheer Competition
The Fabelmans Showtimes Near Baton Rouge
Page 2383 – Christianity Today
+18886727547
Att U Verse Outage Map
Poster & 1600 Autocollants créatifs | Activité facile et ludique | Poppik Stickers
Amici Pizza Los Alamitos
Google Chrome-webbrowser
Bernie Platt, former Cherry Hill mayor and funeral home magnate, has died at 90
Yogu Cheshire
Mid America Clinical Labs Appointments
Wal-Mart 140 Supercenter Products
manhattan cars & trucks - by owner - craigslist
Courtney Roberson Rob Dyrdek
Exploring the Digital Marketplace: A Guide to Craigslist Miami
Watch Chainsaw Man English Sub/Dub online Free on HiAnime.to
Rocket Lab hiring Integration & Test Engineer I/II in Long Beach, CA | LinkedIn
Eat Like A King Who's On A Budget Copypasta
R/Gnv
Joblink Maine
Premiumbukkake Tour
Www.card-Data.com/Comerica Prepaid Balance
Latest Posts
Article information

Author: Zonia Mosciski DO

Last Updated:

Views: 5696

Rating: 4 / 5 (51 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Zonia Mosciski DO

Birthday: 1996-05-16

Address: Suite 228 919 Deana Ford, Lake Meridithberg, NE 60017-4257

Phone: +2613987384138

Job: Chief Retail Officer

Hobby: Tai chi, Dowsing, Poi, Letterboxing, Watching movies, Video gaming, Singing

Introduction: My name is Zonia Mosciski DO, I am a enchanting, joyous, lovely, successful, hilarious, tender, outstanding person who loves writing and wants to share my knowledge and understanding with you.