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The Servicemembers Civil Relief Act, passed in 2003, offers various financial and legal protections for active-duty military. By easing financial stress for service members, the act intends to allow them to focus on defending the nation.
Among the SCRA-mandated benefits is a 6% interest cap on debt incurred before entering active duty, which applies to most loans, including credit cards. However, some issuers go beyond what the SCRA requires of them as creditors. Barclays, Chase and Capital One cut credit card interest rates below 6%, and Chase, American Express and Capital One waive credit card fees.
As a result, cards issued by Barclays, Chase and Capital One are overrepresented on our list of the best credit cards for military service members. Active-duty military stand to gain the most from these cards’ perks and save the most because of the issuers’ generous policies.
To take advantage of SCRA benefits, active-duty service members must apply for them by providing written notice to the creditor and proof of military service no later than 180 days after being released from military service.
🤓 Nerdy Tip
While the SCRA applies to loans taken out before active duty, the Military Lending Act protects service members with loans opened during active duty. The MLA prohibits issuers from charging a military annual percentage rate of interest above 36%. Issuers must factor in credit card fees such as annual fees when calculating the MAPR. Top credit cards for active-duty military service members
For everyday spending: Capital One Savor Cash Rewards Credit Card
SCRA policy: Capital One waives all fees on eligible accounts during active duty and one year after (except for insurance fees), and APR is reduced to 4% during active duty and one year after.
Why we like it: This card has a $0 annual fee for everyone, meaning active-duty service members will pay nothing for some excellent rewards rates. The Capital One Savor Cash Rewards Credit Card earns:
- 8% back on Capital One Entertainment purchases.
- 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel.
- 3% back on dining, eligible streaming services, grocery stores and entertainment.
- 1% cash back on all other purchases.
The high rewards rates in popular spending categories make this card a top-of-wallet contender. It also comes with a lucrative welcome offer: For a limited time, earn a one-time $250 cash bonus once you spend $500 on purchases within the first 3 months from account opening.
SCRA policy: Capital One waives all fees on eligible accounts during active duty and one year after (except for insurance fees), and APR is reduced to 4% during active duty and one year after.
Why we like it: If you opened the Venture X card before active duty, you can take advantage of some massive savings. While civilians pay $395 for the Venture X card, active-duty military pay $0.
Some of the best Venture X perks: A $300 annual credit for bookings made through the Capital One Travel portal; 10,000 bonus miles every account anniversary; unlimited access to Capital One’s airport lounges; a $120 credit every four years for Global Entry or TSA PreCheck; and cell phone insurance. Venture X cardholders can also transfer their miles to one of Capital One’s transfer partners to maximize the value of their rewards.
Full list of Capital One transfer partners
Airlines
- Aeromexico (1:1 ratio).
- Air Canada (1:1 ratio).
- Air France-KLM (1:1 ratio).
- Avianca (1:1 ratio).
- British Airways (1:1 ratio).
- Cathay Pacific (1:1 ratio).
- Emirates (1:1 ratio).
- Etihad (1:1 ratio).
- EVA (2:1.5 ratio).
- Finnair (1:1 ratio).
- Japan Airlines (2:1.5 ratio).
- JetBlue (5:3 ratio).
- Qantas (1:1 ratio).
- Qatar Airways (1:1 ratio).
- Singapore Airlines (1:1 ratio).
- TAP Air Portugal (1:1 ratio).
- Turkish Airlines (1:1 ratio).
- Virgin Red (1:1 ratio).
Hotels
- Accor (2:1 ratio).
- Choice Privileges Hotels (1:1 ratio).
- I Prefer Hotel Rewards (1:2 ratio).
- Wyndham Rewards (1:1 ratio).
🤓 Nerdy Tip
Many of the cards on this list charge annual fees. However, we recommend them for military service members because the cards’ issuers waive fees throughout the active duty period and sometimes for a year after that. When your active duty period ends and you’d rather not pay a hefty annual fee, contact the card issuer and request a product change, specifically a downgrade to a card with a lower or no annual fee. For building credit: Chase Freedom Rise®
SCRA policy: For SCRA-eligible credit card accounts, Chase waives applicable fees and reduces interest rates to 4% while you’re on active duty and for a year afterward, according to a Chase spokeswoman.
Why we like it: The Chase Freedom Rise® is one of the best options for those new to credit. You don’t need a credit history to apply or put up a security deposit to open the account. The card also earns an unlimited 1.5% cash back on all purchases, a rate that’s just a shade below the industry standard.
Understandably, credit newbies may forget to pay their credit card bills on time and in full as they get the hang of managing a credit card. Active-duty service members won’t pay late fees or an interest rate higher than 4% on outstanding balances.
For balance transfers: Chase Freedom Unlimited®
SCRA policy: For SCRA-eligible credit card accounts, Chase waives applicable fees and reduces interest rates to 4% while you’re on active duty and for a year afterward, according to a Chase spokeswoman.
Why we like it: Transferring debt to a credit card with a 0% APR period can be an excellent strategy to prevent balances from swelling due to interest. The Chase Freedom Unlimited® offers a lengthy break from interest on balance transfers: 0% intro APR on purchases and Balance Transfers for 15 months, and then the ongoing APR of 18.24%-27.74% Variable APR. Chase also waives the balance transfer fee for active-duty service members.
If you haven’t paid down the entire balance before the 0% period ends, you’ll pay just 4% interest on the remainder.
For luxury travel: the American Express Platinum Card®
SCRA policy: An American Express spokesperson confirmed that AmEx waives annual fees on cards that were opened prior to active duty and caps interest rates on pre-service balances at 6%.
Why we like it: Because American Express waives annual fees, active-duty service members can get all of the benefits of the American Express Platinum Card® for absolutely nothing. And those benefits are extensive, as they should be for a card that is normally $895 a year. AmEx Platinum cardholders get access to more than $3,500 worth of credits including $600 for hotel bookings, $200 for airline incidental fees* and $300 for digital entertainment such as streaming services. (Enrollment required.) The card also gains you entry into more than 1,500 airport lounges. Terms apply.
For military families: U.S. Bank Shopper Cash Rewards® Visa Signature® Card
SCRA policy: According to a U.S. Bank spokesperson, U.S. Bank provides eligible credit card holders who are on active duty a 6% rate cap. U.S Bank also waives fees incurred while they are on active duty.
Why we like it: As long as you’re on active duty, you won’t pay this card’s $0 intro for the first year, then $95 annual fee, a great deal considering that this card earns 6% cash back at major retailers including Apple, Amazon, Target, Walmart, Home Depot and Lowe’s. That 6% rate is capped at $1,500 in combined quarterly spending between two merchants that cardholders must select each quarter.
Full list of 6% merchants
- Ace Hardware.
- Apple.
- Amazon.com.
- Anthropologie.
- Bed, Bath, & Beyond.
- Best Buy.
- Chewy.com.
- Crate & Barrel.
- Disney.
- Home Depot.
- Ikea.
- Kohl's.
- Lowe's.
- Lululemon.
- Macy's.
- Menards.
- Nordstrom.
- Pottery Barn.
- QVC.
- Restoration Hardware.
- Target.
- Walmart.
- Wayfair.com.
- Williams Sonoma.
The card also earns 3% cash back in other big spending areas for families: wholesale clubs; gas and EV charging stations; and bills and utilities. Cardholders get to select one 3% category per quarter. (Note: gas purchased at discount stores, supercenters and wholesale clubs doesn't qualify.) A $1,500 quarterly cap applies to the 3% rate as well. After hitting the spending caps for the 6% and 3% categories, purchases earn a respectable 1.5% cash back.
*More from American Express
American Express relies on airlines to submit the correct information on airline transactions to identify incidental fee purchases. If you do not see a credit for a qualifying incidental purchase on your eligible Card after 8 weeks, simply call the number on the back of your Card. Qualifying airlines are subject to change. See terms & conditions for more details
To view rates and fees of the American Express Platinum Card®, see this page.
