diff --git a/internal/cmd/config/list/list.go b/internal/cmd/config/list/list.go
index b6bdf48e2..0f6974703 100644
--- a/internal/cmd/config/list/list.go
+++ b/internal/cmd/config/list/list.go
@@ -37,11 +37,6 @@ func NewCmd(p *print.Printer) *cobra.Command {
 				"$ stackit config list"),
 		),
 		RunE: func(cmd *cobra.Command, args []string) error {
-			err := viper.ReadInConfig()
-			if err != nil {
-				return fmt.Errorf("read config file: %w", err)
-			}
-
 			configData := viper.AllSettings()
 
 			// Sort the config options by key
@@ -84,7 +79,7 @@ func NewCmd(p *print.Printer) *cobra.Command {
 				table.AddRow(key, valueString)
 				table.AddSeparator()
 			}
-			err = table.Display(p)
+			err := table.Display(p)
 			if err != nil {
 				return fmt.Errorf("render table: %w", err)
 			}
diff --git a/internal/cmd/config/set/set.go b/internal/cmd/config/set/set.go
index 36e9c06d4..459f3a3b4 100644
--- a/internal/cmd/config/set/set.go
+++ b/internal/cmd/config/set/set.go
@@ -80,9 +80,9 @@ func NewCmd(p *print.Printer) *cobra.Command {
 				viper.Set(config.ProjectNameKey, "")
 			}
 
-			err = viper.WriteConfig()
+			err = config.Write()
 			if err != nil {
-				return fmt.Errorf("write new config to file: %w", err)
+				return fmt.Errorf("write config to file: %w", err)
 			}
 			return nil
 		},
diff --git a/internal/cmd/config/unset/unset.go b/internal/cmd/config/unset/unset.go
index ff4e4d665..7f6bc8449 100644
--- a/internal/cmd/config/unset/unset.go
+++ b/internal/cmd/config/unset/unset.go
@@ -144,9 +144,9 @@ func NewCmd() *cobra.Command {
 				viper.Set(config.SKECustomEndpointKey, "")
 			}
 
-			err := viper.WriteConfig()
+			err := config.Write()
 			if err != nil {
-				return fmt.Errorf("write updated config to file: %w", err)
+				return fmt.Errorf("write config to file: %w", err)
 			}
 			return nil
 		},
diff --git a/internal/pkg/auth/storage.go b/internal/pkg/auth/storage.go
index 3a2031fff..1bcb6e784 100644
--- a/internal/pkg/auth/storage.go
+++ b/internal/pkg/auth/storage.go
@@ -136,7 +136,7 @@ func GetAuthField(key authFieldKey) (string, error) {
 		var errFallback error
 		value, errFallback = getAuthFieldFromEncodedTextFile(key)
 		if errFallback != nil {
-			return "", fmt.Errorf("write to keyring failed (%w), tried write to encoded text file: %w", err, errFallback)
+			return "", fmt.Errorf("read from keyring: %w, read from encoded file as fallback: %w", err, errFallback)
 		}
 	}
 	return value, nil
diff --git a/internal/pkg/config/config.go b/internal/pkg/config/config.go
index 08eac0b98..4077c1d3a 100644
--- a/internal/pkg/config/config.go
+++ b/internal/pkg/config/config.go
@@ -70,30 +70,42 @@ var ConfigKeys = []string{
 	SKECustomEndpointKey,
 }
 
+var folderPath string
+
 func InitConfig() {
 	home, err := os.UserHomeDir()
 	cobra.CheckErr(err)
 	configFolderPath := filepath.Join(home, configFolder)
 	configFilePath := filepath.Join(configFolderPath, fmt.Sprintf("%s.%s", configFileName, configFileExtension))
 
-	viper.SetConfigName(configFileName)
-	viper.SetConfigType(configFileExtension)
-	viper.AddConfigPath(configFolderPath)
+	// Write config dir path to global variable
+	folderPath = configFolderPath
 
-	err = createFolderIfNotExists(configFolderPath)
-	cobra.CheckErr(err)
-	err = createFileIfNotExists(configFilePath)
-	cobra.CheckErr(err)
+	// This hack is required to allow creating the config file with `viper.WriteConfig`
+	// see https://github.com/spf13/viper/issues/851#issuecomment-789393451
+	viper.SetConfigFile(configFilePath)
+
+	f, err := os.Open(configFilePath)
+	if !os.IsNotExist(err) {
+		if err := viper.ReadConfig(f); err != nil {
+			cobra.CheckErr(err)
+		}
+	}
+	defer func() {
+		if f != nil {
+			if err := f.Close(); err != nil {
+				cobra.CheckErr(err)
+			}
+		}
+	}()
 
-	err = viper.ReadInConfig()
-	cobra.CheckErr(err)
 	setConfigDefaults()
 
 	viper.AutomaticEnv()
 	viper.SetEnvPrefix("stackit")
 }
 
-func createFolderIfNotExists(folderPath string) error {
+func createFolderIfNotExists() error {
 	_, err := os.Stat(folderPath)
 	if os.IsNotExist(err) {
 		err := os.MkdirAll(folderPath, os.ModePerm)
@@ -106,17 +118,12 @@ func createFolderIfNotExists(folderPath string) error {
 	return nil
 }
 
-func createFileIfNotExists(filePath string) error {
-	_, err := os.Stat(filePath)
-	if os.IsNotExist(err) {
-		err := viper.SafeWriteConfigAs(filePath)
-		if err != nil {
-			return err
-		}
-	} else if err != nil {
-		return err
+// Write saves the config file (wrapping `viper.WriteConfig`) and ensures that its directory exists
+func Write() error {
+	if err := createFolderIfNotExists(); err != nil {
+		return fmt.Errorf("create config directory: %w", err)
 	}
-	return nil
+	return viper.WriteConfig()
 }
 
 // All config keys should be set to a default value so that they can be set as an environment variable
diff --git a/internal/pkg/projectname/project_name.go b/internal/pkg/projectname/project_name.go
index d2a54ff0a..9f80da8ab 100644
--- a/internal/pkg/projectname/project_name.go
+++ b/internal/pkg/projectname/project_name.go
@@ -43,7 +43,7 @@ func GetProjectName(ctx context.Context, cmd *cobra.Command, p *print.Printer) (
 	// (So next time we can just pull it from there)
 	if !isProjectIdSetInFlags(cmd) {
 		viper.Set(config.ProjectNameKey, projectName)
-		err = viper.WriteConfig()
+		err = config.Write()
 		if err != nil {
 			return "", fmt.Errorf("write new config to file: %w", err)
 		}