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Under the federal Servicemembers Civil Relief Act, credit card issuers are required to offer financial relief to active-duty service members, but some offer more than what the law calls for. The SCRA requires that lenders cap interest rates on pre-service debt at 6%, among other protections. But several major issuers offer even lower interest rates, sometimes extending them for up to a year after the active duty period has ended. Some issuers also waive various credit card fees, and a few issuers do both. Combined, these financial protections could add up to hundreds of dollars in savings.
Here’s what you need to know about these credit card benefits and how to qualify for them.
» MORE: Best credit cards for active-duty military
Best credit card benefits for active-duty military
NerdWallet surveyed 11 major issuers and compared their SCRA benefits. Here are the best offers we found:
Barclays offers 0% APR on accounts opened prior to active duty for eligible service members.
Capital One, Chase, Navy Federal Credit Union and USAA offer 4% APR on eligible balances for qualifying service members.
Capital One and Chase also waive all credit card fees including annual fees, late fees and balance transfer fees.
Remember, though, that these benefits only apply to cards opened before active military service, not during.
Here’s a complete list of our findings.
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| Source: American Express spokeswoman |
| Waived fees on SCRA-eligible accounts. 6% APR on SCRA-eligible accounts, during active duty and extending for six months after SCRA-eligible period ends.
Source: Bank of America® spokesman |
| 0% APR for any credit card or loan accounts opened prior to the service member’s active duty start date. All other fees are waived, except for annual fees. The reduced APR and fee waivers will remain on the accounts while the service member is on active duty.
Source: Barclays spokesman |
| Waived fees, except for insurance, on eligible accounts during active duty and one year afterward. 4% APR on eligible balances during active duty and one year afterward.
Source: Capital One spokeswoman |
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| Interest rate not to exceed 6% on debt incurred prior to active duty, including most fees for the duration the servicemember is on active duty. Source: Discover’s website |
Navy Federal Credit Union | Maximum interest rate of 4% to eligible member accounts. Source: Navy Federal’s website |
| Maximum interest rate of 4% on accounts that qualify for the SCRA or state military benefits. Source: USAA’s website |
| Source: U.S. Bank spokesman |
| 6% APR on pre-service balances. Source: Wells Fargo spokesman |
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How to qualify for credit card benefits
The following service members are eligible for the SCRA’s interest rate reduction benefit:
Active duty members of the Air Force, Army, Coast Guard, Marine Corps and Navy.
Reserve members on active duty.
National Guard members mobilized under federal orders for more than 30 consecutive days.
Active duty commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration.
Spouse of an active-duty service member who shares a joint line of credit with that person.
The service member must apply to receive SCRA protections. Applications are submitted directly to the lender, along with documentation verifying the active duty period. Lenders are required to accept applications for reduced interest rates throughout activity duty and up to 180 days after duty ends. Service members must submit separate interest reduction requests for each account, even if those accounts are held by the same lender.
If you're preparing for deployment or already serving overseas, remember to notify issuers of your service. They might help you out more than you'd expect.
» MORE: How to avoid waiting on credit card customer service lines
🤓Nerdy Tip
While the SCRA applies to loans taken out before active duty, the Military Lending Act protects service members with loans opened during active duty. The MLA prohibits issuers from charging a military annual percentage rate of interest above 36%. Issuers must factor in credit card fees such as annual fees when calculating the MAPR. No application is needed to receive this MLA benefit.
How to maximize SCRA benefits
Minimize interest payments while paying off debt
SCRA benefits can make your total debt balance a lot more affordable, especially if your issuer offers single-digit APRs to active-duty service members. If you’re paying off a large balance with a high APR, those savings could add up quickly. Keep in mind that balance transfer fees, which are generally 3% or 5% of the transferred balance, are also waived on SCRA-eligible accounts. If you transferred your balances to your card with a low APR, you could save on both interest and fees.
» READ: Small steps can have a big impact on tackling credit card debt
Build credit without paying annual fees
If you’re trying to boost your credit scores and are having trouble qualifying for a card with no annual fee, use your SCRA benefits to get the annual fees waived. Pay balances on time and in full, and borrow sparingly, and you could qualify for better terms in the future.
Maximize rewards and other benefits
If you have excellent credit and never carry a balance, you could get even more value out of cards with premium features, such as high rewards rates, airline fee credits, waived baggage fees, airport lounge access and complimentary upgrades. If you get the card before your active duty begins, you likely won't have to pay an annual fee during your service.
» SEE: Best rewards credit cards
FAQs
The MLA protects your active-duty service member – including National Guard soldiers and reservists on active-duty orders for 30 days or longer – by capping the cost of credit at 36% Military Annual Percentage Rate.
Does Amex waive the additional card fee for the military? ›
The American Express Platinum Card usually comes with a high $695 annual fee for the primary cardholder and $195 annual fee for additional cardholders. But that fee is waived for active military members, their spouses and child dependents.
Does Citi waive fees for the military? ›
Citi will waive associated credit card fees, including annual fees, along with interest charges, for active-duty service members. Let's look at some of the best credit cards issued by Citi and how each one might provide value for the active-duty military member.
Do active military pay credit card fees? ›
Cards for active-duty service members come with financial protections because of a federal law called the Servicemembers Civil Relief Act, or SCRA. The SCRA caps the interest rate charged to active-duty service members at 6% per year on pre-service credit card debts and forgives fees.
What is the SCRA 6% interest rate rule? ›
During periods of qualifying active duty military service, the interest rate on the eligible loan will not exceed 6%. If the interest rate is already below 6%, the loan will retain the lower interest rate.
What is the APR cap for the military? ›
Your rights under the MLA include: A 36% interest cap. You can't be charged more than a 36% Military Annual Percentage Rate (MAPR), which includes costs like the following in calculating your interest rate (with some exceptions). Finance charges.
Which Amex card is best for the military? ›
The Platinum Card® from American Express is an excellent travel card, even if you're only away from home once or twice a year. However, if you're a military member, its benefits are exponentially greater.
Does Chase waive annual fees for the military? ›
the $550 annual fee is completely waived down to $0! How do I get the Chase Sapphire Reserve fee waiver for military? If you open the card while your are on active duty, the fee waiver will be automatically applied when Chase checks your Social Security number against the Military Lending Act database.
Is Amex gold free for military? ›
Annual Fee — Value of $325
American Express won't charge the annual fee for eligible active-duty military members, but also for their spouse, children, and qualifying dependents. We'll talk more about eligibility shortly, but those family members and dependents who may also qualify.
How to lower credit card interest rate in the military? ›
Requesting a Reduction of Your Interest Rate:
-Make sure the debt is covered under this provision of the SCRA. -Write a letter requesting that the reduced interest rate be applied to your account. -Include a copy of your active duty orders. Your enlistment contract is not sufficient.
No additional fees and Interest — Value Varies
Capital One waives all fees for eligible military members and caps interest rates on credit cards at 4% (rates & fees).
Does Citi do SCRA benefits? ›
Citi is proud to offer SCRA benefits and protections for eligible active-duty service members. These benefits include reduced interest rates and more. The SCRA provides a wide range of benefits and protections to those in military service.
Does Capital One lower APR for military? ›
Navy Federal Credit Union, USAA, Capital One and Chase cap interest rates on credit cards for active-duty service members at 4%. And Barclays reduces the annual percentage rate all the way to 0% for credit cards that were opened before active duty began.
Is Amex Platinum free for active duty military? ›
Amex Platinum Benefits for Active-Duty Military — No $695 Annual Fee [August 2024] Christine ran her own business developing and managing insurance and financial services. This stoked a passion for points and miles and she now has over 2 dozen credit cards and creates in-depth, deta...
How to waive credit card fee for military? ›
You might be able to get your credit card's annual fee waived by contacting your card issuer to ask for an annual fee waiver or retention offer. Active-duty military members may also receive fee waivers.
What is the interest rate for active military auto loans? ›
Interest rates – The SCRA caps interest rate for active-duty servicemembers at 6 percent. Thus, lenders must often adjust interest rates on scra car loan taken out before servicemembers go on active duty.
What is the APR for military Star Card? ›
Standard account terms apply to non-promotional purchases. As of July 27, 2023, a variable 15.49% APR applies to non-promotional purchases, and a variable 23.49% APR applies to accounts subject to penalty APR. Minimum Interest Charge: $0.50.
What is the interest rate on military service deposit? ›
The U.S. Treasury has announced the calendar year 2023 interest rate is 1.875 percent. This rate is applicable to “post-1956” military service credit accounts.
Does military get better interest rates? ›
Eligible veterans and service members find that rates are generally lower with a VA home loan than a conventional mortgage.
