A savings account alone won't get you a credit card, but it can help
Having a savings account does not automatically mean a credit card company will issue you a card. Credit card companies look at your credit history — a record of how you have borrowed and repaid money in the past — not just whether you have savings. However, a savings account can strengthen your process in two ways: it shows you have a banking relationship, and some banks offer credit cards more readily to their own customers.
If you have little or no credit history, a savings account at a bank that also issues credit cards gives you a starting point. Some banks will consider you for a secured credit card — a card backed by money you deposit — if you already bank with them. This is different from a regular credit card, which relies on your credit history to decide whether to approve you.
Key Takeaways
- Credit card approval depends on your credit history, not on having a savings account, though a savings account can help if you bank with the card issuer.
- If you have no credit history, a secured credit card backed by your savings is often the most direct path to getting a card.
- Banks that issue both savings accounts and credit cards sometimes approve their own customers for secured cards more readily than they would a stranger.
- Your credit score, income, and debt-to-income ratio matter more to most credit card companies than the size of your savings account.
How credit card companies decide who gets approved
When you explore for a credit card, the issuer pulls your credit report — a record kept by credit bureaus like Equifax, Experian, and TransUnion. This report shows every loan, credit card, and payment you have made over the past seven to ten years. The issuer uses this history to calculate your credit score, a number that predicts how likely you are to repay borrowed money.
If you have no credit history — you have never borrowed money or used a credit card before — your credit report will be blank. In this case, most credit card companies will deny your process because they have no way to predict whether you will repay them. A savings account shows you can save money, but it does not show you can repay debt, which is what credit card companies care about.
Some issuers also look at your income and how much debt you already carry. They want to know that you earn enough to make monthly payments and that you are not already drowning in debt. A large savings account might suggest financial stability, but it is not a substitute for a credit history.
When a savings account actually helps your process
If you bank with a large institution like Chase, Bank of America, Wells Fargo, or a regional bank that issues its own credit cards, that relationship can matter. These banks have access to your account history — how long you have banked with them, whether you keep a healthy balance, whether you overdraft frequently. Some will use this information to approve you for a secured credit card even if you have no credit history.
A secured credit card requires you to deposit money into a savings account held by the card issuer. You then receive a credit card with a limit equal to your deposit — typically between $200 and $2,500, depending on how much you deposit. You use the card like a regular credit card, and your monthly payments are reported to the credit bureaus. After 6 to 18 months of on-time payments, many issuers will convert your secured card to a regular unsecured card and return your deposit.
The advantage of explore for a secured card through your current bank is that they already know you. They can see your account history and may approve you faster than a bank where you have no relationship. Some banks will even waive the deposit requirement for long-standing customers, though this is less common.
What happens if your bank declines you
If your bank declines your process for a secured card, you have other options. Credit unions sometimes have lower approval standards than large banks, especially if you are a member. You can also explore for a secured card from a different bank — you do not have to use the bank where you have your savings account.
Before you explore anywhere, check whether the card issuer reports to all three credit bureaus (Equifax, Experian, and TransUnion). If they report to only one or two, your credit history will not build as quickly. Most major banks and credit unions report to all three, but some smaller issuers do not.
Another option is to become an authorized user on someone else's credit card — usually a family member with good credit. Their payment history will appear on your credit report, which can help you build credit. After six months to a year, you may be able to explore for your own card with better odds of approval.
Building credit while you wait for a card
If you are not ready to explore for a credit card yet, you can build credit in other ways. A credit-builder loan, offered by many credit unions and some online lenders, works like a secured card: you deposit money, borrow it back at a low interest rate, and make monthly payments that are reported to the credit bureaus. After you repay the loan, you get your money back plus interest you earned.
You can also ask your bank to report your savings account activity to the credit bureaus. Some banks offer this service, though it is not standard. If your bank does report savings account activity, on-time deposits and a healthy balance can help build your credit score over time.
A third option is to use a service that reports your rent or utility payments to the credit bureaus. Companies like Experian Boost allow you to connect your bank account and have your regular bills reported as credit activity. This does not replace a credit history, but it can help if you have no other credit accounts.
The difference between a savings account and a credit card
It is important to understand that a savings account and a credit card serve different purposes. A savings account is money you own. A credit card is borrowed money that you must repay. When you use a credit card, you are taking a loan from the card issuer, and they charge you interest if you do not repay the full balance by the due date.
Credit card companies want to know you can handle borrowed money responsibly. A large savings account shows you can save, but it does not prove you can repay debt. This is why your credit history matters more than your savings balance. However, if you have both — a savings account and a good credit history — you are much more likely to be approved for a credit card with a higher limit and better terms.
Frequently Asked Questions
Can I get a credit card if I have never borrowed money before?
Yes, but you will likely need to start with a secured credit card backed by a deposit. A secured card is designed for people with no credit history. After you make on-time payments for several months, you can explore for a regular unsecured card or ask the issuer to convert your secured card.
Does the size of my savings account affect my credit card approval?
Not directly. Credit card companies care about your credit history and income, not how much money you have saved. However, if you explore for a secured card, your deposit becomes your credit limit, so a larger savings account means a higher limit.
Should I close my savings account to explore for a credit card?
No. Closing a savings account will not help your credit card process. Keep your savings account open — it shows financial stability and gives you a safety net if you need it.
What if I have a savings account but a bad credit history?
A savings account will not override a bad credit history. However, you can rebuild your credit by making on-time payments on a secured card or credit-builder loan. After 12 to 24 months of good payment history, you may be approved for a regular credit card.
Can my bank see my savings account when I explore for a credit card?
If you explore for a card from the bank where you have your savings account, yes — they can see your account history. If you explore elsewhere, the other bank will not see your savings account unless you tell them about it or they pull a bank verification report, which is less common.