Which credit cards waive fees for military?
Under the Servicemembers Civil Relief Act (SCRA), most major issuers waive annual fees on cards opened before active duty service. American Express, Chase, Citi, and Bank of America all honor SCRA fee waivers. The Amex Platinum ($695 fee waived) and Chase Sapphire Reserve ($550 fee waived) are among the most valuable cards to hold under SCRA because their high annual fees are completely eliminated for active duty members.
What is SCRA and how does it affect credit cards?
The Servicemembers Civil Relief Act (SCRA) is a federal law that provides financial protections for active duty military members. For credit cards opened before military service, SCRA requires issuers to cap interest rates at 6% and waive annual fees upon request. You must notify your card issuer and provide a copy of your military orders to activate these benefits. SCRA protections apply during active duty and for a period after separation.
What are the best cards for overseas deployment?
For overseas deployments, you need a card with no foreign transaction fee to avoid the typical 3% surcharge on purchases made abroad. The Amex Platinum (SCRA), Chase Sapphire Reserve (SCRA), and USAA Preferred Cash Rewards all charge no foreign transaction fees. The Chase Sapphire Reserve also includes Priority Pass lounge access, which is valuable during long layovers at international airports during deployment travel.
USAA vs Navy Federal vs mainstream cards -- which is better for military?
Military-specific institutions like USAA and Navy Federal offer dedicated customer service and military-friendly policies, but their rewards rates often lag behind mainstream premium cards with SCRA waivers. An active duty member holding the Amex Platinum for free under SCRA gets far more value than any USAA or Navy Federal card. However, USAA and Navy Federal excel at banking services, auto loans, and insurance. The ideal approach is to use mainstream premium cards for spending rewards while maintaining a USAA or Navy Federal banking relationship.
Do SCRA benefits apply to cards opened during service?
Traditional SCRA benefits apply only to financial obligations incurred before entering active duty. However, many issuers voluntarily extend fee waivers and rate caps to cards opened during service as a goodwill gesture. American Express is particularly known for waiving fees on cards opened during service. Always contact the issuer directly to confirm their specific policy, as voluntary extensions can change.
What is the best card for PCS moves?
PCS (Permanent Change of Station) moves involve significant travel expenses including flights, temporary lodging, meals, and sometimes vehicle shipping. The Chase Sapphire Reserve earns 3x on travel and dining with a $300 travel credit, making it ideal for PCS expenses. The Amex Platinum earns 5x on flights and offers hotel credits. Both cards have their fees waived under SCRA, making them effectively free premium cards for covering PCS costs.
How does military service affect credit?
Military service can both help and challenge your credit. On the positive side, steady military pay and SCRA interest rate caps make it easier to manage debt. Deployments can be challenging if you forget to set up autopay or miss payments while in the field. The key is to set up automatic payments on all accounts before deploying, designate a trusted family member with power of attorney, and regularly check your credit report through AnnualCreditReport.com, which is accessible from military networks.
What are the best credit cards for military spouses?
Military spouses can access USAA and Navy Federal membership through their service member. Some SCRA benefits extend to dependents on joint accounts. For spouses managing household finances during deployments, the Wells Fargo Active Cash (2% on everything) or Discover it Cash Back (no annual fee, fair credit accepted) are strong choices. The Discover card is particularly good for spouses building credit independently, as it accepts applicants with fair credit scores starting at 580.
