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Best Credit Card Benefits for Active-Duty Military – Top Perks & Savings in 2025
December 12, 2024
Military Credit Card Benefits: SCRA and MLA Overview
Active-duty service members are entitled to certain financial protections by federal law, which translate into valuable credit card benefits. The Servicemembers Civil Relief Act (SCRA) caps interest rates on pre-service debts (including credit card balances) at 6% annually. This means 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 – a big relief when civilian rates average around 17%. 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 accounts opened during active duty. The MLA sets a high but comprehensive interest cap (36% “Military APR,” including fees) on new credit, effectively discouraging high fees. In practice, many credit card issuers comply by waiving annual fees and other charges 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 members (and often their dependents), ensuring military families have far less financial burden from credit cards while serving.
Top Perks and Protections for Active-Duty Military
Military members can take advantage of a range of credit card benefits not available to most civilians. Here are two of the best credit card benefits for active-duty military members today:
Waived Fees on Premium Credit Cards
Many top-tier credit cards come with hefty annual fees – but if you’re active-duty, those fees may be waived in full. Under the MLA, 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 $550+ per year in fees. By eliminating fees, banks make it free for servicemembers to enjoy premium perks like airport lounge access, travel credits, elite hotel status, and more. For example, Chase waives the $550 fee on the Sapphire Reserve for active-duty members, letting you enjoy its hundreds of dollars in travel credits and luxury benefits at no cost. These waived-fee policies often extend to military spouses with their own accounts as well, effectively doubling a family’s access to rewards. Overall, waived fees are a huge financial advantage – you get all the rewards and VIP perks without the usual price tag.
Lower Interest Rates & APR Caps
Carrying a credit card balance is less punishing for military members thanks to dramatically lower interest rate limits. The SCRA guarantees any credit card debt incurred before active duty won’t accrue interest above 6% APR while you’re serving. But many major issuers go 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, cut interest to 4% on eligible balances during active service. Some of these reduced rates can even extend for a period after you separate to help with your transition.
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 – free and easy to use.
Maximizing Your Card 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. Since you won’t owe annual fees, 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+ fee can be free for you under military benefits. Whether you value travel points, cash back, or special perks, look at cards known for rich rewards – as an active-duty member, you can likely get all those perks at zero cost.
Next, extend the benefit to your family. If you have a spouse, consider each of you getting your own card account under these programs. Many issuers waive fees for military spouses who have their own cards. This effectively lets your household double up on sign-up bonuses, rewards earn rates, and benefits. For example, one military couple each opened a Sapphire Reserve and each earned the 60,000-point bonus – that’s roughly $1,800 in travel from points alone, plus two sets of $300 annual travel credits, all with no annual fees for either cardholder. By coordinating applications with your spouse, your family can maximize rewards twofold without extra cost.
Finally, stay informed and plan ahead. Always notify your issuers of your active-duty status – many benefits (like SCRA rate reductions) require a formal request with your orders. Meanwhile, MLA-based fee waivers are often automatic, but it doesn’t hurt to double-check with each bank’s military benefits team. Also, remember these perks aren’t permanent: once you 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 ensure unique perks for servicemembers – including interest rate caps on pre-service debt and waived fees on many new 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 military orders to each credit card company to trigger the SCRA’s interest rate cap and fee relief.
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 (not immediately) – but once you’re no longer an active servicemember, banks will 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 when you’re facing the standard rates and fees.
Conclusion
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Active-duty military personnel and their families 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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