Did you know many credit card companies are going above and beyond their legal obligations under the Service Members Civil Relief Act?
Many companies are retroactively lowering interest rates for balances placed AFTER your enlistment! Under the SCRA, 6 percent is the maximum interest rate that can, however, in 2016 many institutions are choosing to use even lower rates.
Considering my current circumstances, this is fantastic news.
For the two or three people who truly know me, I’m always looking for a way to save a few bucks. Since January of 2015, I’ve been a geographical bachelor living in Houston, while my family maintains a residence in San Antonio.
I reside on the North side of the city, well outside of the Beltway. I opted for comfort and security, and some would say I’m paying a premium for rent. Between my house and apartment, we currently pay close to 3k a month for the most basic living expenses. I live off of a credit card and typically pay the balance in full (or close to it) before the end of the billing cycle.
Currently, my go-to credit card is the Hilton Honors Card from American Express. I swipe this card to cover all of my day-to-day living expense while simultaneously earning rewards points.
Now the scary part.
This card comes with a hefty 15.49 annual percentage rate (APR).
Aha Moment With Spencer & Amex
Recently, I ran across a post from the Military Money Manual, which explained how American Express goes above and beyond their legal obligations under the SCRA.
Following Spencer’s guidance, I’ve submitted my request to have my account handled in accordance with the SCRA.
Armed with this new information, I conducted a brief Internet search, searching for a list of credit card companies that also provide similar support under the SCRA.
To my surprise, I failed to locate a substantial resource to share, so I decided to create one.
Not Just American Express
Many credit card companies are heeding the call and retroactively lowering interest rates, reducing the interest on balances placed AFTER enlistment, and cutting refund checks.
Now I understand that for many of us, the promise of 0% APR and having our annual fees waived may sound like an April fools post on the Duffel Blog.
But I’ve been able to locate 13 credit card companies, which have been secretly offering SCRA benefits to service members and in some cases their spouses.
List of SCRA Friendly Credit Card Companies
Here’s a List of 13 Credit Card Companies that Go Above and Beyond To Support Service Members Under the SCRA:
USAA SCRA Benefits
Benefits: USAA has three unique programs designed to put money back into service members pockets:
- SCRA: USAA provides service members a reduced interest rate of 4%, for credit card debt incurred prior to active duty. This is good for up to six months after separation
- Deployment of PCS: Active duty members can get a 4% interest rate, and some fees waived on their USAA MasterCard, Visa or American Express for current balances, new purchases, and cash advances for up to 12 months for PCS or up to 15 months for deployment.
- Campaign Medal: USAA members awarded a qualifying campaign medal can get all the interest incurred during the campaign refunded on their USAA MasterCard, USAA Visa or USAA American Express.
How to apply: Find out if you qualify online and send in the required documents. Call 210-531-USAA (8722) for more information.
Source: https://www.usaa.com/inet/pages/bank_military_special_benefits_main?akredirect=true
From great rewards to low-interest rates, they've got you covered.
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