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Top Credit Card Perks for Active-Duty Military – Save & Earn in 2025
December 12, 2024
Military Credit Card Benefits Under SCRA and MLA
Active-duty service members in the U.S. are entitled to special financial protections by law, which translate into valuable credit card benefits. The Servicemembers Civil Relief Act (SCRA) caps interest rates on pre-service debts at 6% annually. In other words, if you took on credit card debt before joining the military, your issuer cannot charge more than 6% interest on that balance during your active duty. This is a huge relief considering civilian credit cards often carry interest rates above 20% APR on average. The goal of SCRA is to ease financial stress on military families so you can focus on your service.
Meanwhile, the Military Lending Act (MLA) provides protections for credit accounts opened during active duty. The MLA sets a high but firm 36% “Military APR” cap (including fees) on new credit, effectively discouraging predatory rates. In practice, many card issuers comply with the MLA by waiving fees entirely for active-duty personnel. The result? You and your family can often hold premium credit cards free of charge while you serve. These laws apply to all active-duty U.S. military members (and often their dependents), ensuring military families carry far less financial burden from credit cards while serving their country.
Top Perks and Protections for Active-Duty Members
Active-duty military members can take advantage of a range of credit card perks not available to most civilians. Here are some of the best benefits to know about:
Waived Annual Fees on Premium Cards
Many top-tier credit cards come with hefty annual fees – some $500 or more – but if you’re active-duty, those fees are often waived in full. Under the MLA, major issuers like Chase, American Express, and Capital One automatically waive annual fees for qualifying military cardholders. This means you could hold elite travel rewards cards without paying their $550+ annual price tags. By eliminating fees, banks make it free for servicemembers to enjoy premium perks like airport lounge access, travel credits, elite hotel status upgrades, and more.
Lower Interest Rates & APR Caps
Carrying a balance is far less punishing for military members thanks to dramatically lower interest rate limits. As mentioned, SCRA guarantees any credit card debt incurred before active duty won’t accrue interest above 6% APR while you’re serving. But many issuers go above and beyond the law’s requirements. For instance, Barclays even offers 0% APR on pre-service balances for active-duty personnel, essentially eliminating interest on those debts. Others like Chase, Capital One, USAA, and Navy Federal Credit Union voluntarily cap interest at around 4% APR on eligible balances during active service. Some of these reduced rates can even extend for a time after you separate (often up to 12 months) to help with your transition back to civilian life.
No Hidden Fees (and More Perks)
In addition to annual fee waivers and interest caps, many issuers also waive other common fees for military accounts. Depending on the bank, you might pay no late fees, no foreign transaction fees, and no balance transfer fees while on active duty. Essentially, the most punitive charges are lifted. This makes using credit cards much more forgiving if you’re deployed or moving around frequently. Plus, you still get all the usual rewards and benefits of the card. For example, premium travel cards that earn cash back or points on every purchase become especially valuable when you don’t have to worry about fees eating into those rewards. Some cards even include perks like free checked bags, travel insurance, or Global Entry/TSA PreCheck® credits – and for military members, it’s all upside with none of the usual costs.
Wondering which credit card best fits your needs? Kudos can quickly compare top cards and highlight special perks (like military fee waivers), so you can find the most rewarding option – it’s free and easy to use.
Maximizing Your Benefits as a Military Family
With these perks on the table, it pays to strategize how you and your family use credit cards. First, take advantage of waived fees by applying for premium rewards cards you might otherwise avoid due to high annual costs. Since you won’t owe the fee, there’s no downside to enjoying luxe benefits.
In fact, experts suggest aiming for the most rewarding card that suits your needs, because even a card with a $500+ annual fee can be free for you under military benefits. Whether you value travel points, cash back, or special lifestyle perks, look at cards known for rich rewards – as an active-duty member, you can likely get all those perks at zero cost.
Next, consider extending the benefit to your family. If you have a spouse, it may make sense for each of you to get your own card accounts under these programs. Most issuers waive fees for military spouses who have their own separate cards, too. This effectively lets your household double up on sign-up bonuses, reward earnings, and perks.
Finally, stay informed and plan ahead. Always notify your card issuers of your active-duty status – many SCRA benefits require a formal request along with a copy of your military orders. By law, lenders must accept SCRA requests any time during active duty or within 180 days of leaving service, so don’t hesitate to send in that paperwork.
Meanwhile, MLA-based fee waivers are usually applied automatically when you open a new account on active duty, but it never hurts to double-check with each bank’s military benefits team. Also, remember these perks aren’t permanent. Once you eventually leave active duty, normal fees and rates will resume. It’s wise to review which cards you want to keep long-term and budget accordingly for any fees that might kick back in after your service. By planning ahead – and using tools like Kudos to compare card options – you can fully enjoy your military credit card benefits now and be prepared for the future.
FAQ
Do active-duty military members get special credit card perks that civilians don’t?
Yes. Federal laws grant unique perks for servicemembers – including interest rate caps on pre-service debt and waived fees on many accounts – that regular cardholders can’t access. These benefits range from dramatically lower APR on balances to free premium card features for those in active service.
Do I need to notify my card issuer to receive SCRA benefits?
Yes. You generally must request SCRA benefits by contacting your issuer. Active-duty members should send written notice and a copy of their military orders to each credit card company to trigger the SCRA’s 6% interest rate cap and any fee refunds. Lenders are required to accept these requests throughout active duty and up to 180 days after it ends.
Can my spouse get the same credit card benefits if they’re not active-duty?
Yes. Military spouses and dependents often qualify for similar perks. If your spouse has their own credit card account and you’re active-duty, most issuers will waive their annual fees as well. In other words, a military family can enjoy two sets of card rewards – one for the servicemember and one for the spouse – without paying any fees, effectively doubling your household’s benefits.
Will my credit card perks go away after I leave the military?
No – at least not immediately. While you’re no longer an active servicemember, banks will eventually revert to normal terms on your accounts. That means waived fees and special low APRs typically end upon separation. For example, a card that was free during active duty might start charging its annual fee again. It’s smart to plan for this change and decide if those cards are still worth keeping once regular fees and rates apply.
Are there credit cards designed specifically for military members?
Yes. In addition to mainstream cards that offer military waivers, there are also military-exclusive credit cards. These cards are only available to servicemembers and their families. They often come with low interest rates and no fees by default, making them very friendly for military use. However, be sure to compare them against standard cards with waived-fee programs – sometimes a premium civilian card with a waiver can deliver richer rewards than a basic military credit card. It all depends on your spending habits and needs.
Conclusion
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Active-duty military personnel have access to some of the best credit card benefits available – from paying almost no interest on balances to enjoying elite travel perks with zero fees. By understanding your rights and leveraging these programs, you can save money and unlock luxury rewards that make military life a bit easier. And when it comes to finding the right cards and perks, tools like Kudos can help you compare options and maximize every benefit you’ve earned through your service. Enjoy your perks, and most of all, thank you for your service!
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