What are the chances of getting a credit card approved at your bank?

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When you apply for a credit card, issuers take a number of factors into account, such as your credit rating, credit history, income, and monthly rent or mortgage payments.

Although all this influences your chances of approval, there is another factor that you may not be aware of.

If you already have a good relationship with your bank or checkout – meaning you have a checking or savings account and no overdraft history on your account – you may find it 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 Can Help You Get Approved

Visiting the bank where you already have an account can increase your chances of getting a credit card approved, as they already know you and may feel more confident to grant you a line of credit, especially if it this is your first credit card.

It’s always a good idea to research the best credit card based on your credit score and financial ability, but Bruce McClary, spokesperson for the National Foundation for Credit Counseling (NFCC), told CNBC Select it there are circumstances in which you might have additional incentives to start with the financial institution where you already have an account.

“This can be especially true if you have a less than stellar credit history but have an account in good standing,” says McClary. “That credit issuer may be more likely to view your recent account history with their credit card as a major factor over other past credit setbacks related to other accounts. The more recent your financial problems, the less it is guaranteed that your creditor can be as flexible as you want. “

Depending on the quality of your banking relationship, it may even help you get a better interest rate, lower fees, a longer promotional finance period, or a sign-up bonus if you are approved for the credit card. Be sure to ask about the benefits for new applicants. Some issuers waive the annual fee or offer statement credits to new cardholders.

If you get approved, having a credit card at the institution where you already do your banking might also make it easier pay your monthly bill on time since you can simply transfer funds between accounts rather than between issuers, and you do not have to set up a different profile on another issuer’s website.

What to watch out for when applying for a credit card from your bank

Once you’ve asked a representative from your bank to open a credit card, you’ll want to review all card offers first before officially applying. You should compare any card offer with what is advertised online or any offer you have received in the mail. Remember that a request for new credit requires a serious investigation on your credit report, which can temporarily drop a few points on your credit rating.

If you anticipate having trouble getting a credit card approved and want to see what your bank has to offer, it can be helpful to know which are the best credit cards for CNBC Select. bad credit, fair and average credit and for mortgage.

Below are just a handful.

Capital One® QuicksilverOne® Cash Rewards credit card, Capital One® Platinum credit card, DCU Visa® Platinum Secured credit card and Capital One® Secured credit card information was independently collected by CNBC and has not been reviewed or provided by the card issuer prior to publication.

Petal 2 Visa credit card issued by WebBank, FDIC member.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.


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