Military families face unique challenges– physically, emotionally, logistically and financially. Finding the right credit card for your unique lifestyle shouldn’t have to fall into that list of challenges.
No matter your credit card, active-duty military members and their spouses are eligible for benefits related to the Servicemembers Civil Rights Act (SCRA). The SCRA provides financial help to active-duty military personnel and their spouses; however, many credit card issuers go above and beyond the SCRA and offer additional benefits, such as lowering interest rates beyond what the law requires. “Interest” for SCRA purposes includes fees such as annual membership fees, late fees, and returned payment fees.
We break down the benefits of SCRA as well as the best credit cards for military members and the perks that they offer.
What is the military credit card act?
Congress passed the Servicemembers Civil Rights ACT (SCRA) in 2003, which expanded the Soldier’s and Sailors’ Civil Relief Act of 1940.
SCRA deals with rental agreements, security deposits, mortgage interest rates, health insurance, income tax payments, mortgage foreclosures and, yes, credit cards.
The SCRA caps active military members’ interest rate at 6% for financial obligations incurred before military service, and requires creditors to forgive interest greater than 6%. This means banks can’t defer interest to later, and they must also forgive the interest retroactively.
Who is eligible for military credit card benefits?
To be eligible for the SCRA, you must be at least one of the following:
- A member of the U.S. Armed Forces on active duty or a reserve component called to active duty.
- National Guard personnel under a call or order to active duty for more than 30 days.
- A Public Health Service or National Oceanic and Atmospheric Administration commissioned officer.
- A U.S. citizen servicing with another nation, which is allied with the U.S.
- The spouse of an active duty service member.
As much as members of the military need – and should use – the perks available to them, some civilians can also benefit from some specialized companies broadening their user base. Further, secondary cardholders and authorized users should also pay attention to all benefits.
Here’s a quick guide to help see if you are eligible for special perks:
USAA
PenFed
Navy Federal Credit Union
To be eligible for USAA:
- Active, retired and honorably separated officers and enlisted personnel of the U.S. military
- Officer candidates in commissioning programs such as military academies and ROTC (Reserve Officer Training Corps), OCS/OTS)
- Adult children of USAA members who have or had a USAA auto or property insurance policy
- Widows and widowers of USAA members who have or had a USAA auto or property insurance policy
Source: USAA
PenFed membership is more open. You can join through your employment, association membership, or volunteerism. This includes:
- All active duty, retired and honorably separated military and their family members
- Federal employees (regardless of military status) or their family member
- Housemate of eligible person
- By joining a group like National Military Family Organization (you can sign up as a “concerned citizen”) for a small one-time membership fee
- Red Cross volunteer
Source: PenFed
Navy Federal Credit Union is among the more restrictive in terms of membership. You must be affiliated with the:
- Armed Forces, DoD, Coast Guard or National Guard or a family member
- This includes regular Active Duty and reservists, and Army and Air National Guard personnel
Source: Navy Federal Credit Union
How to request SCRA
You will need to know a few details to take full advantage of this benefit. According to the Consumer Financial Protection Bureau, to get SCRA benefits, you must:
- Let your credit card company know of your active duty status in writing. This applies to any issuer.
- Request the interest-rate reduction to 6% while on active duty.
- Include a copy of your orders.
Important: This only applies to credit cards received or loans made before you begin active duty and only applies to the period of military service, or additionally one year after in the case of “an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage,” according to the law.
Military members have 180 days after their end of service to notify creditors and provide the necessary documents to benefit from the 6% APR cap.
Contact your credit card company either via phone or online. Don’t be deterred if the customer service representative isn’t familiar with these benefits. Just request to speak to a supervisor. You should also expect to answer a series of questions about your military service.
Once your creditor receives your information, they will review your SCRA eligibility to confirm you are an active duty military member or the spouse of an active service member. The creditor will examine the provided documents and check the Department of Defense Manpower Data Center.
Each credit card issuer has a similar process to verify SCRA benefits and to approve other active military-related card perks.
Are there credit card benefits for military members?
Yes. As a way to say “thank you,” some credit card issuers offer special military credit card benefits for active-duty members and, in some cases, their spouses. Here are a few of the ways credit card companies thank military members:
Annual fee waivers
This can be a huge money saver, especially for cards with hefty annual fees. However, if you’re active-duty military, you don’t have to worry about this fee with some credit card issuers.
Lower APR
The SCRA requires creditors to cap their APR at 6% for active service members; however, some card issuers drop it further. Citi offers a 0% APR during active duty on eligible accounts opened prior to active duty. USAA and Capital One lower the APR to 4%. USAA even goes beyond that and extends the 4% APR until a year after active duty ends.
No late fees
Select issuers will waive late fees for active military members. A word of caution– late payment information will still go to credit bureaus, which can affect your credit score. So, it’s not a good idea to miss a payment even if your card may waive the fee.
Wipe out all fees
Some credit card companies remove all fees while you’re on active duty. For instance, Capital One and USAA cut foreign transaction, balance transfer, cash advance and all other card-related fees.
Identity theft protection
Identity theft is a major issue for military families. The Federal Trade Commission (FTC) has estimated that nearly one-third of consumer complaints to their agency from active duty military, veterans and their spouses involved identity theft.
The FTC recommends all active-duty military who don’t expect to seek out credit use an “active-duty alert” on their credit report. This flag will stop any new credit application and trigger a fraud review.
The great news here is you don’t have to call all three credit reporting bureaus – TransUnion, Experian and Equifax. Just contact one and request the alert; that bureau must let the others know.
Best credit cards for military members
All credit cards will give you the benefits of the SCRA, and some cards will provide added benefits. If you’re ready to start taking advantage of these benefits available to you, keep reading for some of the top cards from issuers offering unique military benefits.
Before you apply, however, remember that being active duty military doesn’t guarantee approval for a credit card; your credit history and score will still be factors in whether you’re approved.
*Please note that each issuer has specific policies regarding waivers, interest rates, and offers for military members. In some cases, you must open the card BEFORE going on active duty; in other cases, special features/waivers apply only for cards opened after a specific date. We’ve done our best to offer general guidance on these offers. If you attempt to take advantage of these offers and encounter an issue, please let us know by emailing [email protected] so that we can update this article accordingly. In all cases, if you see a card you like, be sure to speak with a customer service representative to ensure you understand the full scope of benefits available to you as a member of the military.
CardName
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Annual fee: AnnualFees*
Rewards: Cardholders get five Membership Rewards points on flights booked directly with airlines or with American Express Travel (on up to $500,000 on these purchases per calendar year). You can also earn 80,000 bonus rewards when you spend $8,000 in the first six months.
Luxury perks: This card is meant for regular travelers. You get access to hundreds of airport lounges through the Global Lounge Collection, 24/7 access to the Platinum Club Concierge, which can help with travel arrangements, and a credit to cover your Global Entry or TSA PreCheck application fee. You also get $200 a year in a statement credit to cover travel-related charges like baggage fees and in-flight refreshments that you charge on your card with a pre-selected airline.
Foreign transaction fees: foreign_fee*
Credit needed: CreditScoreNeeded
CardName
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Annual fee: AnnualFees*
Rewards: Earn 6% back on the first $6,000 spent annually at U.S. supermarkets, 6% on select U.S. streaming services, 3% back on purchases at U.S. gas stations and on transit, and 1% back on your other purchases. By the way, most supermarkets these days sell a host of gift cards and, yes, you can earn 6% back when you buy gift cards at those supermarkets. Plus, you can earn a $250 statement credit after you spend $3,000 in eligible purchases on your new card within the first six months.
Credit needed: CreditScoreNeeded
CardName
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Annual fee: AnnualFees*
Rewards: This card offers 4X points per $1 spent on purchases at restaurants worldwide (on up to $50,000 in purchases per calendar year), then 1X points; 4X points per $1 spent at US supermarkets (on up to $25,000 in purchases per calendar year) then 1X points; 3X points per $1 spent on flights booked directly with airlines or on AmexTravel.com; 2X points per $1 spent on prepaid hotels and other eligible purchases booked on AmexTravel.com; and 1X point per $1 spent on all other eligible purchases. For a limited time, new cardholders can earn 60,000 points after you spend $6,000 on eligible purchases on your new card in your first six months of card membership. Plus, receive 20% back in statement credits on eligible purchases made at restaurants worldwide within the first six months of card membership, up to $100 back. Offer ends 11/6/24. You can also earn up to $10 in statement credits monthly when you pay with your card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. This can be an annual savings of up to $120. Enrollment required.
Foreign transaction fees: foreign_fee. *
Credit needed: CreditScoreNeeded
CardName
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Annual fee: AnnualFees (waived completely under certain circumstances for active duty military)*
Rewards: Earn 60,000 bonus points after making $4,000 in purchases the first three months. Those bonus points are worth $900 in travel since CardName cardholders’ points are worth 50% more when redeemed for travel through Chase Travel℠. Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Travel immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining and 1X point per dollar spent on all other purchases.
Perks: Your points are transferable to a number of airline and hotel loyalty programs at a 1:1 rate or you can redeem through Chase Travel for 50% more value. You’ll receive up to $300 in statement credit each account anniversary year to cover travel expenses and you’ll enjoy access to more than 1,300 airport lounges worldwide. Cardholders are also protected with travel cancellation/interruption insurance and an auto rental collision damage waiver.
Active military perks: No annual fee and Chase waives late fees during active service. *Subject to terms.
Foreign transaction fee: foreign_fee
Credit needed: CreditScoreNeeded
CardName
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Annual fee: AnnualFees, waived for active duty military*
Rewards: Earn 5X total points on all travel purchased through Chase Travel℠ portal; 3X points on dining, including eligible delivery services and takeout; 3X points on online grocery purchases (excluding Target, Walmart and wholesale clubs); 3X points on select streaming services; 2X points on travel purchases; and 1X point on all other purchases. New cardholders receive up to $1,050 in Chase Travel℠ value – earn 60,000 bonus points after $4,000 in purchases in your first three months from account opening (worth $750 when redeemed through Chase Travel); plus, get up to $300 in statement credits on Chase Travel purchases within your first year.
Perks: You can transfer your points to the card’s airline partners and hotel travel partners, making these incredibly flexible reward points. Furthermore, if you redeem your points through Chase Travel, those points are worth 25% more. That means the 60,000 bonus points are worth $750 in travel. Cardholders also enjoy travel cancellation/interruption insurance and an auto rental collision damage waiver.
Active military perks: No annual fee and Chase waives late fees during active service.
Foreign transaction fee: foreign_fee
Credit needed: CreditScoreNeeded
CardName
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Annual fee: AnnualFees (waived for active duty military)*
Rewards: Earn 75,000 miles once you spend $4,000 on purchases within three months from account opening, equal to $750 in travel.
Perks: You can fly any airline, stay at any hotel, anytime and not have to worry about blackout dates. In addition, you can transfer your miles to multiple leading travel loyalty programs. Use your miles to receive statement credits for travel-related purchases. Plus, there’s fraud coverage, complimentary concierge services and auto rental collision damage waiver.
Active military perks: Capital One wipes out all fees, including annual fee, late fees and balance transfer fees during active service. The company also caps the APR at 4% for active duty military.
Foreign transaction fee: foreign_fee
Credit needed: CreditScoreNeeded
CardName
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Annual fee: AnnualFees (waived during active duty for accounts opened prior to active duty)*
Rewards: Earn four AAdvantage® bonus miles for every $1 spent on eligible American Airlines purchases. Earn one mile for every $1 spent elsewhere. Earn 70,000 American Airlines AAdvantage® bonus miles after spending $7,000 within the first three months of account opening.
Luxury perks: This is another luxury card, so you get luxury treatment: Access to the Admirals Club® airport lounges, free first checked bags for you and eight traveling companions traveling with you on the same domestic reservation* and more.
Active military perks: For accounts opened prior to active duty, Citi cuts the APR to 0% during active duty plus waives the fees.
Foreign transaction fee: foreign_fee
Credit needed: CreditScoreNeeded
CardName
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Annual fee: AnnualFees*
Welcome Bonus: Earn $200 cash back after you spend $1,500 on purchases in the first six months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Rewards: You get 1% cash back when you make purchases and another 1% cash back when you pay at least the minimum balance due on your bill on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
Perks: Complimentary concierge service and fraud protection.
Active military perks: For accounts opened prior to active duty, Citi cuts the APR to 0% during active duty.
Foreign transaction fee: foreign_fee (waived for service members)
Credit needed: CreditScoreNeeded
Top business cards for members of the military
CardName
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Annual fee: AnnualFees*
Rewards: Cardholders get five times Membership Rewards® points on flights and prepaid hotels booked through American Express Travel. Earn 1.5 points on eligible purchases with U.S. construction material and hardware suppliers, electronic goods retailers and software and cloud system providers, and shipping providers and on eligible purchases of $5,000 or more (up to a cap). You can also earn 150,000 Membership Rewards® points after you spend $20,000 on qualifying purchases within your first three months of card membership.
Luxury perks: This card is meant for regular business travelers. You have access to airport lounges around the globe; 24/7 access to the Platinum Club Concierge, which can help with travel arrangements, arrange business lunches or even procure tickets to entertain clients; and a credit to cover your Global Entry ($120) or TSA PreCheck® ($85) application fee every four years or 4.5 years, respectively, for the primary cardholder as well as all other cardholders on the account. You also get $200 a year in a statement credit to cover airline-related charges like baggage fees and in-flight refreshments that you charge on your card with a pre-selected airline.
When it comes time to redeem your rewards, you’ll receive 35% of your points back when you redeem through American Express Travel for a first or business class ticket on any airline or any class ticket with your pre-selected airline (up to 1 million points back each year).
Foreign transaction fees: foreign_fee.*
Credit needed: CreditScoreNeeded
Remember, choose a credit card that matches your interests and lifestyle. Many companies offer benefits to active service members, so you should be able to find the best military credit card for you. Compare each card’s rewards and special offers to decide which one matches your situation and interests. If you don’t see something above that fits your credit history and needs, check out our full list of offers for more options and information.
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