diff --git a/Makefile b/Makefile
index 6d5a9578..f79f2cde 100644
--- a/Makefile
+++ b/Makefile
@@ -54,7 +54,7 @@ test:
 .PHONY: testacc
 testacc:
 	@echo "==> Running acceptance tests"
-	TF_ACC=1 go test ./castai/... '-run=^TestAcc' -v -timeout 16m
+	TF_ACC=1 go test ./castai/... '-run=^TestAcc' -v -timeout 20m
 
 .PHONY: validate-terraform-examples
 validate-terraform-examples:
diff --git a/castai/resource_eks_cluster.go b/castai/resource_eks_cluster.go
index 76f84192..2f154a25 100644
--- a/castai/resource_eks_cluster.go
+++ b/castai/resource_eks_cluster.go
@@ -201,9 +201,10 @@ func updateClusterSettings(ctx context.Context, data *schema.ResourceData, clien
 		}
 		err = sdk.StatusOk(response)
 		// In case of malformed user request return error to user right away.
-		if response.StatusCode() == 400 {
+		if response.StatusCode() == 400 && !sdk.IsCredentialsError(response) {
 			return backoff.Permanent(err)
 		}
+
 		return err
 	}, backoff.NewExponentialBackOff()); err != nil {
 		return fmt.Errorf("updating cluster configuration: %w", err)
diff --git a/castai/resource_gke_cluster.go b/castai/resource_gke_cluster.go
index dfeba45a..d9c4a6c5 100644
--- a/castai/resource_gke_cluster.go
+++ b/castai/resource_gke_cluster.go
@@ -209,7 +209,7 @@ func updateGKEClusterSettings(ctx context.Context, data *schema.ResourceData, cl
 		}
 		err = sdk.StatusOk(response)
 		// In case of malformed user request return error to user right away.
-		if response.StatusCode() == 400 {
+		if response.StatusCode() == 400 && !sdk.IsCredentialsError(response) {
 			return backoff.Permanent(err)
 		}
 		return err
diff --git a/castai/sdk/utils_response.go b/castai/sdk/utils_response.go
index e53313ee..16a0058f 100644
--- a/castai/sdk/utils_response.go
+++ b/castai/sdk/utils_response.go
@@ -1,6 +1,7 @@
 package sdk
 
 import (
+	"encoding/json"
 	"fmt"
 	"net/http"
 )
@@ -32,3 +33,23 @@ func checkResponse(response Response, err error, expectedStatus int) error {
 
 	return nil
 }
+
+type ErrorResponse struct {
+	Message         string `json:"message"`
+	FieldViolations []struct {
+		Field       string `json:"field"`
+		Description string `json:"description"`
+	} `json:"fieldViolations"`
+}
+
+func IsCredentialsError(response Response) bool {
+	buf := response.GetBody()
+
+	var errResponse ErrorResponse
+	err := json.Unmarshal(buf, &errResponse)
+	if err != nil {
+		return false
+	}
+
+	return errResponse.Message == "Forbidden" && len(errResponse.FieldViolations) > 0 && errResponse.FieldViolations[0].Field == "credentials"
+}
diff --git a/castai/sdk/utils_response_test.go b/castai/sdk/utils_response_test.go
new file mode 100644
index 00000000..f8b6df12
--- /dev/null
+++ b/castai/sdk/utils_response_test.go
@@ -0,0 +1,54 @@
+package sdk
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+func Test_IsCredentialsError(t *testing.T) {
+	t.Run("credentials error", func(t *testing.T) {
+		t.Parallel()
+		r := require.New(t)
+
+		body := `{
+	"message": "Forbidden",
+	"fieldViolations":
+	[{"field": "credentials", "description": ""}]
+}`
+		resp := ExternalClusterAPIReconcileClusterResponse{
+			Body: []byte(body),
+		}
+		result := IsCredentialsError(resp)
+		r.True(result)
+	})
+	t.Run("not credentials error", func(t *testing.T) {
+		t.Parallel()
+		r := require.New(t)
+
+		body := `{
+	"message": "something",
+	"fieldViolations":
+	[{"field": "credentials", "description": ""}]
+}`
+		resp := ExternalClusterAPIReconcileClusterResponse{
+			Body: []byte(body),
+		}
+		result := IsCredentialsError(resp)
+		r.False(result)
+	})
+	t.Run("no fields in message", func(t *testing.T) {
+		t.Parallel()
+		r := require.New(t)
+
+		body := `{
+	"message": "something",
+	"fieldViolations":[]
+}`
+		resp := ExternalClusterAPIReconcileClusterResponse{
+			Body: []byte(body),
+		}
+		result := IsCredentialsError(resp)
+		r.False(result)
+	})
+}