diff --git a/pkg/porter/credentials.go b/pkg/porter/credentials.go
index d3e62715b..aeb141825 100644
--- a/pkg/porter/credentials.go
+++ b/pkg/porter/credentials.go
@@ -135,6 +135,9 @@ func (g *CredentialOptions) validateCredName(args []string) error {
 	return nil
 }
 
+// GenerateCredentials builds a new credential set based on the given options. This can be either
+// a silent build, based on the opts.Silent flag, or interactive using a survey. Returns an
+// error if unable to generate credentials
 func (p *Porter) GenerateCredentials(opts CredentialOptions) error {
 
 	//TODO make this work for either porter.yaml OR a bundle
@@ -168,13 +171,23 @@ func (p *Porter) GenerateCredentials(opts CredentialOptions) error {
 		fmt.Fprintf(p.Out, "%v", string(data))
 		return nil
 	}
-
+	credentialsDir, err := p.Config.GetCredentialsDir()
+	if err != nil {
+		return errors.Wrap(err, "unable to get credentials directory")
+	}
+	// Make the credentials path if it doesn't exist. MkdirAll does nothing if it already exists
+	// Readable, writable only by the user
+	err = p.Config.FileSystem.MkdirAll(credentialsDir, 0700)
+	if err != nil {
+		return errors.Wrap(err, "unable to create credentials directory")
+	}
 	dest, err := p.Config.GetCredentialPath(genOpts.Name)
 	if err != nil {
-		return errors.Wrap(err, "unable to determine credentials directory")
+		return errors.Wrap(err, "unable to determine credentials path")
 	}
 
 	fmt.Fprintf(p.Out, "Saving credential to %s\n", dest)
+
 	err = p.Context.FileSystem.WriteFile(dest, data, 0600)
 	if err != nil {
 		return errors.Wrapf(err, "couldn't write credential file %s", dest)
diff --git a/pkg/porter/credentials_test.go b/pkg/porter/credentials_test.go
index e8d9ca350..f60cfec69 100644
--- a/pkg/porter/credentials_test.go
+++ b/pkg/porter/credentials_test.go
@@ -7,6 +7,7 @@ import (
 	printer "github.com/deislabs/porter/pkg/printer"
 
 	"github.com/deislabs/duffle/pkg/bundle"
+	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
 
@@ -231,3 +232,72 @@ good-creds   now`},
 		})
 	}
 }
+
+func TestGenerateNoCredentialDirectory(t *testing.T) {
+	p := NewTestPorter(t)
+	p.TestConfig.SetupPorterHome()
+	p.CNAB = &TestCNABProvider{}
+
+	opts := CredentialOptions{
+		Silent: true,
+	}
+	opts.Name = "name"
+
+	//Check if the credentials directory exists in the FS. It shouldn't.
+	credDir, err := p.Config.GetCredentialsDir()
+	require.NoError(t, err, "should have been able to get credentials directory path")
+	credDirExists, err := p.Porter.Context.FileSystem.DirExists(credDir)
+	require.NoError(t, err, "shouldn't have failed on dir exists")
+	require.False(t, credDirExists, "there should not have been a credential directory for this test")
+
+	//Now generate the credentials. After completion, the directory should now exist. It should be
+	//created if it does not exit
+	err = p.GenerateCredentials(opts)
+	assert.NoError(t, err, "credential generation should have been successful")
+	credDirExists, err = p.Porter.Context.FileSystem.DirExists(credDir)
+	assert.NoError(t, err, "shouldn't have gotten an error checking credential directory after generate")
+	assert.True(t, credDirExists, "should have been a credential directory after the generation")
+
+	//Verify that the credential was actually created.
+	path, err := p.Porter.Config.GetCredentialPath("name")
+	assert.NoError(t, err, "couldn't get credential path")
+	credFileExists, err := p.Porter.Context.FileSystem.Exists(path)
+	assert.True(t, credFileExists, "expected the file %s to exist", path)
+	assert.NoError(t, err, "should have been able to check if get credential path exists")
+}
+
+func TestGenerateCredentialDirectoryExists(t *testing.T) {
+	p := NewTestPorter(t)
+	p.TestConfig.SetupPorterHome()
+	p.CNAB = &TestCNABProvider{}
+
+	opts := CredentialOptions{
+		Silent: true,
+	}
+	opts.Name = "name"
+
+	//Create the credentials directory
+	credDir, err := p.Config.GetCredentialsDir()
+	require.NoError(t, err, "should have been able to get credentials directory path")
+	err = p.Config.FileSystem.MkdirAll(credDir, 0600)
+	require.NoError(t, err, "should have been able to make directory path")
+
+	//Verify the directory does in fact, exist.
+	credDirExists, err := p.Porter.Context.FileSystem.DirExists(credDir)
+	require.NoError(t, err, "shouldn't have failed on dir exists")
+	require.True(t, credDirExists, "there should have been a credential directory for this test")
+
+	//Generate the credential now. The directory does exist, so there should be no error.
+	err = p.GenerateCredentials(opts)
+	assert.NoError(t, err, "credential generation should have been successful")
+	credDirExists, err = p.Porter.Context.FileSystem.DirExists(credDir)
+	assert.NoError(t, err, "shouldn't have gotten an error checking credential directory after generate")
+	assert.True(t, credDirExists, "should have been a credential directory after the generation")
+
+	//Verify we wrote the credential file.
+	path, err := p.Porter.Config.GetCredentialPath("name")
+	assert.NoError(t, err, "couldn't get credential path")
+	credFileExists, err := p.Porter.Context.FileSystem.Exists(path)
+	assert.True(t, credFileExists, "expected the file %s to exist", path)
+	assert.NoError(t, err, "should have been able to check if get credential path exists")
+}