SCRA Credit Card Benefits: Companies Who Support the SCRA

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Active duty servicemembers can benefit greatly by applying for Servicemembers Civil Relief Act protections and provisions with the following financial companies. Possible benefits include reduction of interest rates, protection from repossession and foreclosure, no late fees, and no annual credit card fees. Often times credit card companies and lenders will go above and beyond SCRA requirements to deliver additional benefits to servicemembers such as reduced interest rates lower than 6% while on active duty.

Understanding SCRA Credit Card Advantages

The Servicemembers Civil Relief Act (SCRA), established in 2003, offers financial relief to military members by capping interest rates and fees. Under this act, military personnel are protected from being charged an interest rate exceeding 6% for debts taken on before joining the military. This interest rate reduction applies to various debts including car loans, credit cards, mortgages, and student loans, as stated by the U.S. Department of Justice.

To benefit from this, military members need to inform their credit card companies in writing, accompanied by their military orders, within six months after completing their service. The credit card companies are then obligated to not only reduce the interest rate to 6% but also refund any excess interest charged previously.

It’s important to note that the interest rate cap only applies to debts acquired before military service. This means a military member might have different interest rates on a single credit card based on when the debt was incurred.

Eligibility for SCRA Benefits

Only those in active duty, federal active-duty reservists, or National Guard members with federal orders extending beyond 30 days are eligible. Unfortunately, veterans are not covered under SCRA.

Differences in Credit Card Benefits for Active Military and Veterans

While both active military members and veterans have access to a range of reward and travel credit cards, fee waivers and SCRA benefits are typically reserved for those currently in active duty.

Best Credit Card SCRA Benefits for Active-Duty Military Members

The perks you get on your credit card while serving in the military can differ based on the card provider. The following illustrates the differences in benefits based on the bank that provides your card, as well as details on some of the most popular credit cards they offer for military members.

American Express

American Express provides a range of benefits under the Servicemembers Civil Relief Act (SCRA) for eligible active-duty military members. One of the most notable benefits is the waiver of annual fees on all of their credit cards, including premium cards like the Platinum Card®. Additionally, American Express offers a 0% APR on existing balances and new purchases for the duration of the servicemember’s active duty period. This can result in significant savings, especially for those who carry a balance on their cards. Furthermore, late fees, over-limit fees, and returned payment fees are also waived for eligible military members.

card_name

• Welcome bonus: bonus_miles_full
• Rewards: Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
• Perks: Annual $200 hotel credit (The Hotel Collection requires a minimum two-night stay), $240 digital entertainment credit, $155 Walmart+ credit, $200 airline fee credit, $200 Uber Cash, $300 Equinox credit, $189 CLEAR Plus credit, $100 Global entry credit, and more. Terms apply, and enrollment required. Learn more at American Express.
• Credit score needed: credit_score_needed

Citi

Citi is committed to providing benefits and protections to eligible members of the U.S. Armed Forces. They offer a reduced annual percentage rate (APR) of 0% on both existing balances and future purchases. Additionally, Citi waives annual fees and other service fees for these members. To avail of the SCRA benefits, members need to submit a request and provide a copy of their military orders.

Citi^® Double Cash Card

• Welcome bonus: No set welcome offer
• Rewards: bonus_miles_full
• Perks: Typical account security features: $0 liability for unauthorized purchases, 24-hour fraud protection, Citi Identity Theft Solutions and card replacement and emergency cash service
• Credit score needed: credit_score_needed

Learn more about the Citi® Double Cash Card here

Chase

Chase offers a host of benefits for servicemembers, including a reduced APR of 4% for accounts that carry balances. The bank also waives or credits various fees, such as annual fees and other service-related charges. Importantly, Chase extends these SCRA benefits for up to a year after a member’s active duty concludes. To access these benefits, members must submit a request and provide relevant military orders or supporting documents.

card_name

• Welcome bonus: bonus_miles_full
• Rewards: 3X points on general travel and restaurant purchases; 10X total points on Lyft purchases (through March 31, 2025); 10X total points on Chase Dining purchases through Ultimate Rewards; 10X total points on hotel stays and car rentals through Ultimate Rewards; 5X total points on air travel through Ultimate Rewards (after earning your $300 travel credit); 1X points on all other purchases
• Perks: Annual $300 travel credit, Priority Pass Select airport lounge membership, a credit for Global Entry or TSA PreCheck and more
• Credit score needed: credit_score_needed

Learn more about the Chase Sapphire Reserve® here

Capital One

Capital One stands by its military customers by offering a maximum interest rate of 4% on all their accounts. The bank also ensures that all fees, including annual fees, over-limit fees, and late fees, are waived for eligible members. National Guard members activated by the President or Secretary of Defense can also avail of these SCRA benefits. To receive these benefits, members should submit a request accompanied by a copy of their deployment or active duty orders.

card_name

• Welcome bonus: bonus_miles_full
• Rewards: The card offers unlimited 1.25 miles per dollar on eligible purchases. So someone who spends $25,000 a year could earn 31,250 miles annually with this card.
• Perks: Free credit toward Global Entry or TSA PreCheck, travel accident insurance, and 24-hour travel assistance services
• Credit score needed: credit_score_needed

Learn more about the Capital One Venture Rewards Credit Card here

PenFed

PenFed offers a range of SCRA benefits, including a reduced APR of 6% on credit card balances. The credit union also waives certain fees like late fees and over-limit charges. These benefits are extended to eligible active-duty military members and their dependents. To access these benefits, members need to submit a written request along with a copy of their military orders.

card_name

• Welcome bonus: bonus_miles_full
• Rewards: 3 points back per dollar spent on travel purchases (4 points back on travel for PenFed Honors Advantage members). 1.5 points back per dollar spent on all other purchases.
• Perks: Benefits include a $100 annual domestic air ancillary travel credit, a reimbursement for Global Entry or TSA Precheck application fees, and Priority Pass airport lounge access for $32 per visit. Terms apply.
• Credit score needed: credit_score_needed

Learn more about the PenFed Pathfinder® Rewards Visa Signature® Card here

Bank of America

Bank of America supports its military customers by providing a reduced interest rate of 6% for credit card debt that was incurred before active military service. The bank also waives various fees, including annual fees, monthly service charges, and cash advance fees. These SCRA benefits are available to eligible active-duty military members. To avail of these benefits, members are required to submit a request and provide a copy of their military orders.

card_name

• Welcome bonus: bonus_miles_full
• Rewards: Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points for every $1 spent on all other purchases. No limit to the points you can earn and your points don’t expire.
• Perks: Get up to $100 in Airline Incidental Statement Credits annually and TSA PreCheck®/Global Entry Statement Credits of up to $100, every four years.
• Credit score needed: credit_score_needed

Learn more about the Bank of America® Premium Rewards® credit card here

Barclays

Barclays offers a suite of benefits for its military customers, including a reduced APR of 0% on existing balances. The bank also waives annual fees and other service-related charges for eligible active-duty military members. To access these SCRA benefits, members are encouraged to contact Barclays, submit a request, and provide the necessary supporting documentation.

Discover

Discover card offers a competitive 5.9% APR on various transactions, including purchases, balance transfers, and cash advances for eligible military members. The company also waives several fees, such as late fees, over-limit charges, and cash advance fees. Moreover, they offer a complete waiver of service fees for eligible members. To receive these SCRA benefits, members must submit a request and provide a copy of their deployment or active duty orders.

card_name

• Welcome bonus: bonus_miles_full
• Rewards: Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
• Perks: Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
• Credit score needed: credit_score_needed

Learn more about the Discover it® Cash Back card here

USAA

USAA, a financial institution dedicated to serving military members and their families, also offers SCRA benefits for its credit cardholders. USAA provides a reduced interest rate of 4% on pre-service balances for the duration of active duty. This rate is lower than the 6% mandated by the SCRA, showcasing USAA’s commitment to supporting the military community. Additionally, USAA ensures that no fees or charges are added to the account while the servicemember is on active duty. They also offer special deployment and PCS (Permanent Change of Station) rates, further assisting military members during transitional periods.

Bottom Line

Military personnel have the advantage of receiving reduced interest rates and eliminated fees on several leading reward credit cards, making it a compelling reason to consider registering. These cards often come with attractive initial bonuses valued at $500 or even higher, along with enticing benefits such as access to airport lounges and travel credits.

However, just like any other consumer, those in the military should be cautious about accumulating debt beyond their repayment capacity. It’s essential to remember that once their military service concludes, these special credit card benefits won’t last forever.

_{Veteran.com has partnered with CardRatings for our coverage of credit card products. Veteran.com and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on Veteran.com are from advertisers. Compensation may impact how and where card products appear, but does not affect our editors’ opinions or evaluations. Veteran.com does not include all card companies or all available card offers.}