3 popular credit card benefits for active military personnel
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.
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.
Some issuers openly offer waived fees on credit card accounts for active military personnel, and others may still offer them, you just have to ask. Being able to waive an annual fee of potentially hundreds of dollars, or even avoiding a late payment charge, can add up both in the moment and over time. All the available card benefits stay the same, so you can get premium credit card perks for no annual fees.
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.
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.
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.
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.
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.Started in 2011, Accredited Debt Relief has helped clients resolve over $1 billion in debt.
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.
On Chase's site
On Chase's site
Points are worth 50% more when you redeem them for travel booked through Chase Travel℠.
Excellent740–850
20.24% - 28.74% variable
$550
Earn 60,000 bonus points
See rates and fees. Terms apply. Member FDIC.
Read our Chase Sapphire Reserve® review.
The Chase Sapphire Reserve® is a standout premium credit card with plenty of luxury perks and statement credits to justify its annual fee.
Either $5 or 5% of the amount of each balance transfer, whichever is greater
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.$0With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
JPMorgan Chase Bank, N.A. Member FDIC
Terms apply.$0Bank from anywhere with access to more than 15,000 Chase ATMs, more than 4,700 Chase branches, the Chase Mobile® app and Chase.com.
JPMorgan Chase Bank, N.A. Member FDIC
Terms apply.
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.
You can add up to four authorized users to your account no fee and they can each receive their own Priority Pass airport lounge membership (enrollment required).
Excellent740–850
19.99% - 29.24% variable APR
$395
Earn 75,000 bonus miles
Terms apply. Read our Capital One Venture X Rewards Credit Card review.
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.$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
$0
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.
Chase and Capital One are two banks that waive certain credit card fees for active military members.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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