diff --git a/.changeset/three-tips-hunt.md b/.changeset/three-tips-hunt.md
new file mode 100644
index 0000000000..3782fc315b
--- /dev/null
+++ b/.changeset/three-tips-hunt.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Updated `create-github-app` command to prompt for read or write permissions to simplify setup.
diff --git a/packages/cli/src/commands/create-github-app/GithubCreateAppServer.ts b/packages/cli/src/commands/create-github-app/GithubCreateAppServer.ts
index 58a3e97a9a..0fe321541e 100644
--- a/packages/cli/src/commands/create-github-app/GithubCreateAppServer.ts
+++ b/packages/cli/src/commands/create-github-app/GithubCreateAppServer.ts
@@ -60,14 +60,20 @@ export class GithubCreateAppServer {
   private baseUrl?: string;
   private webhookUrl?: string;
 
-  static async run({ org }: { org: string }): Promise<GithubAppConfig> {
-    const encodedOrg = encodeURIComponent(org);
+  static async run(options: {
+    org: string;
+    readWrite: boolean;
+  }): Promise<GithubAppConfig> {
+    const encodedOrg = encodeURIComponent(options.org);
     const actionUrl = `https://github.com/organizations/${encodedOrg}/settings/apps/new`;
-    const server = new GithubCreateAppServer(actionUrl);
+    const server = new GithubCreateAppServer(actionUrl, options.readWrite);
     return server.start();
   }
 
-  constructor(private readonly actionUrl: string) {
+  private constructor(
+    private readonly actionUrl: string,
+    private readonly readWrite: boolean,
+  ) {
     const webhookId = crypto
       .randomBytes(15)
       .toString('base64')
@@ -122,6 +128,13 @@ export class GithubCreateAppServer {
         url: this.webhookUrl,
         active: false,
       },
+      ...(this.readWrite && {
+        default_permissions: {
+          contents: 'write',
+          actions: 'write',
+          metadata: 'read',
+        },
+      }),
     };
     const manifestJson = JSON.stringify(manifest).replace(/\"/g, '&quot;');
 
diff --git a/packages/cli/src/commands/create-github-app/index.ts b/packages/cli/src/commands/create-github-app/index.ts
index 2e5dd01072..e84e010c60 100644
--- a/packages/cli/src/commands/create-github-app/index.ts
+++ b/packages/cli/src/commands/create-github-app/index.ts
@@ -16,6 +16,7 @@
 
 import fs from 'fs-extra';
 import chalk from 'chalk';
+import inquirer, { Answers } from 'inquirer';
 import { stringify as stringifyYaml } from 'yaml';
 import inquirer, { Question } from 'inquirer';
 import { paths } from '../../lib/paths';
@@ -26,8 +27,23 @@ import openBrowser from 'react-dev-utils/openBrowser';
 // due to lacking support for creating apps from manifests.
 // https://docs.github.com/en/free-pro-team@latest/developers/apps/creating-a-github-app-from-a-manifest
 export default async (org: string) => {
+  const answers: Answers = await inquirer.prompt([
+    {
+      type: 'list',
+      name: 'appType',
+      message: chalk.blue('What will the app be used for [required]'),
+      choices: [
+        'Read and Write(needed by the scaffolding to create new projects)',
+        'Read only',
+      ],
+    },
+  ]);
+  const readWrite = answers.appType !== 'Read only';
   await verifyGithubOrg(org);
-  const { slug, name, ...config } = await GithubCreateAppServer.run({ org });
+  const { slug, name, ...config } = await GithubCreateAppServer.run({
+    org,
+    readWrite,
+  });
 
   const fileName = `github-app-${slug}-credentials.yaml`;
   const content = `# Name: ${name}\n${stringifyYaml(config)}`;