If you’re an active service member, you’re entitled to some financial protections.
This is thanks to the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA), both of which address the consumer debt that military members and their families may carry. These laws provide financial safeguarding like interest rate caps, protections against mortgage foreclosures and from eviction, ability to terminate leases, no loan prepayment penalties and credit card relief.
Below, CNBC Select dives deeper into active-duty military members’ financial protections when it comes to their credit cards.
Military credit card benefits
1. Interest rate caps
One of the most valuable benefits is the cap on interest rates for many different types of loans, including credit cards. The interest rate on debt covered by the SCRA is capped at 6%, while the rate on interest and fees under the MLA is capped at 36% in order to protect service members from predatory lending practices.
2. Waived fees
3. Shared perks
Often, the perks that the active service member receives will also be available to their spouse. Sometimes this will be due to the letter of the law, other times as a courtesy extended by a financial institution. Many banks will have special phone lines or email addresses for questions military members might have about benefits so reach out and ask.
Plus, additional issuer benefits
Some issuers offer additional benefits that go above and beyond those required by law.
With Capital One, customers eligible for the SCRA will receive an interest rate cap of 4% and no annual fees or other fees on their Capital One credit card accounts. These benefits apply to the spouses/dependents of eligible service members and that coverage extends for one year after the end of their active-duty service.
Chase offers SCRA benefits, including waived fees on all Chase credit cards and 4% APR on eligible balances during active duty and one year afterward.
Other issuers have indicated that they provide relief that meets or exceeds the requirements. Since each issuer may handle military benefits differently, it’s always best to reach out directly with any questions or if you’re looking for specific details.
Make the most of your credit card benefits
If you’re eligible for any of these active military benefits, it’s worth reaching out to your bank to see how you could save.
Pay down your debt while you have a lower interest rate
Taking advantage of the interest rate cap you have on credit card debt can save you a large amount of money, especially if you qualify for the 6% interest rate cap.
If you’re paying $250 a month on $5,000 in credit card debt with 25% interest, it will still take you over two years and more than $1,500 in interest payments to pay it off. With a 6% interest rate cap, those same $250 monthly payments eliminate your debt in under two years with just under $300 worth of interest payments, saving you over $1,200.
Struggling to pay off debt? Consider enlisting the help of a debt relief company
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Freedom Debt Relief has resolved over $19 billion in outstanding debts since 2002. It offers free credit card debt relief consultations.
Get the most value out of premium credit cards
With many credit card issuers waiving fees for active military service members, this can lead to some pretty great value from the higher-tier cards. With Chase waiving their fees on all its cards, you could get the Chase Sapphire Reserve® (see rates and fees) without its typical $550 annual fee, giving you access to a $300 annual travel credit, entry into over 1,300 airport lounges and more.
The Chase Sapphire Reserve® is a standout premium credit card with plenty of luxury perks and statement credits to justify its annual fee.
- Access to 1,300+ airport lounges worldwide, including Sapphire Lounge by The Club locations
- Up to $300 in annual travel credit
- You can transfer rewards to all of Chase’s travel partners including World of Hyatt, Southwest Rapid Rewards and many more
- Top-tier travel and shopping protections
- High annual fee
- Requires a high credit score
Highlights
- Earn 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase TravelSM immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase TravelSM. For example, 60,000 points are worth $900 toward travel.
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority PassTM Select and up to $120 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Lost Luggage Insurance and more.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each balance transfer, whichever is greater
Pro tip: You can pair this card with a Chase bank account
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
Extend your benefits to eligible family members
One aspect of some of these military benefits that can get overlooked is whether they apply to spouses or dependents, as this can be a nice addition. With Capital One extending its credit card benefits to the spouses and dependents of service members, they could also qualify for a premium travel card like the Capital One Venture X Rewards Credit Card without paying the $395 annual fee. The card offers a $120 statement credit for either Global Entry or TSA PreCheck® and a 10,000-mile bonus on each account anniversary.
The Capital One Venture X Rewards Credit Card is a premium credit card with a myriad of benefits and a lower annual fee than other high-end cards with similar features.
- Annual $300 credit for bookings through Capital One Travel
- 10,000 bonus miles after every card anniversary
- Unlimited complimentary access to 1,300+ airport lounges, including Capital One Lounge locations
- Long list of valuable travel and shopping protections, including return protection, rental car coverage and trip delay reimbursement (Benefit(s) only available to accounts approved for the Visa Infinite card. Terms apply.)
- Limited bonus spending categories compared to other premium credit cards
- High annual fee
- High credit score requirement (excellent credit)
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive a $300 annual credit for bookings through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Enjoy complimentary access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and the Partner Lounge Network
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more. You can even transfer your miles to your choice of 15+ travel loyalty programs
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
Balance transfer fee
$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
Foreign transaction fees
FAQs
Do active military members pay credit card fees?
In addition to the perks required by law, some issuers will also provide additional benefits to active military members such as waived fees or reduced interest periods.
Which banks will waive credit card fees for active military members?
Chase and Capital One are two banks that waive certain credit card fees for active military members.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
