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While on duty, members of the military are protected by the Servicemembers Civil Relief Act (SCRA), a federal law designed to provide financial and legal protections to active-duty military members, reservists and members of the National Guard. They also get some of the best credit card perks and benefits available.
Among the protections and benefits are annual fee waivers and a reduction on the interest you can be charged on credit card debt and personal loans taken on prior to your active duty. As an active duty military member, you can score valuable miles, points and cash back on travel and everyday spending — like groceries, gas and on-base purchases — without a hefty upfront cost.
The following cards can serve you well while you serve your country, with top benefits that can save you money and keep you worry-free while you’re abroad.
Top cards for military members
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Active duty military members can receive a reduction of the annual fee on this luxury travel card, making it a great option if you want to take advantage of travel-related statement credits, like $500 for stays with The Edit hotel collection and a $300 annual travel credit. These perks can help you get ahead in your travel planning costs, especially if you qualify for a reduced fee under SCLA.
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Pros
- It comes with luxury travel perks and credits that can make traveling more comfortable.
- It carries a comprehensive list of travel protections and benefits that can bring comfort and convenience to your journey.
Cons
- Points are only worth 1 cent without a Points Boost offer from Chase.
- This card can have a fairly high ongoing APR, which could make carrying a balance costly.
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The Platinum Card® from American Express offers luxury travel perks like airport lounge access, airline fee credits and hotel elite status with reduced fees and interest charges for active-duty military. Since it’s typically a costly card, it’s worth taking advantage of that perk whenever you can. American Express Membership Rewards are also valuable and flexible for transferring to partnering airlines and hotels. Plus, you’ll reap the benefits of several perks and credits.
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Pros
- You can get one of the most valuable and rewarding personal credit cards for a reduced fee.
- You can transfer Amex Membership Rewards to partnering airlines and hotels for increased rewards value
Cons
- You’ll need to pay your balance in full every billing cycle unless you use Amex’s Pay Over Time feature
- Average cardholders may not take full advantage of many of the card’s perks, such as Saks Fifth Avenue credits and private jet offers.
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You won’t need to worry about an annual fee with this card, and it keeps your rewards simple. It’s also a credit union card, so you’ll have a fairly low ongoing APR. It’s a great pick for anyone building credit who might occasionally carry a credit balance because it may not bury you in interest charges as quickly as other cards will.
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Pros
- You can deposit up to $5,000 to maximize your available credit limit.
- NFCU will review your account in three months for a potential credit limit increase and again at six months for a potential upgrade to an unsecured card.
Cons
- It’s not as rewarding as other secured credit cards.
- You don’t get many perks with this card, which makes it pale in comparison to parks-laden cards that might reduce costly annual fees.
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Retired, active duty, reserve and honorably discharged members of the military can qualify for a PenFed Honors Advantage membership, which means they’ll have the annual fee on this card waived. This card carries several travel perks and offers boosted rewards for travel purchases. If you travel somewhat frequently, it can be a great option if you want to avoid complex redemption schemes with luxury travel cards.
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Pros
- You can qualify for a reduced annual fee no matter where you are in your military career.
- There are no spending caps for the card’s best rewards rate, which can be a disappointing restriction on cards with generous rewards rates.
Cons
- A waived $95 annual fee is a great perk, but you may be able to access much more valuable credit cards for reduced annual fees as an active-duty military member.
- Rewards expire after five years, which is below industry standard. Many cards’ points don’t expire as long as the account is active and in good standing.
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This is a great card for any military member living on or close to a military base because it has a generous cash back rate for military purchases made on bases. It also doesn’t sacrifice any rewards value for some common everyday purchases like gas and groceries, which are both included in this card’s boosted categories.
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Pros
- Earn boosted cash back for everyday purchases and those made on military bases, which can include a broad range of items most card issuers would consider “all other purchases.”
- Qualify for an ongoing APR that’s lower than the APR on even some credit union cards.
Cons
- This card does not offer a sign-up bonus, which is typically a very valuable one-time offer that rivals the annual rewards potential of most cards.
- It caps bonus category rewards at $3,000 in spending per year, which is quite a low ceiling.
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This balanced rewards card doesn’t offer complex redemption routes and credits, carries a low ongoing APR and has flexible redemption options. You won’t get the lush benefits of expensive travel cards, but you will get a low ongoing APR and acceptable value for a low annual fee.
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Pros
- Its low annual fee is easy to offset with regular spending thanks to the card’s generous flat rewards rate on all purchases.
- Its ongoing APR is among the lowest you can find on a personal credit card just about anywhere.
Cons
- The welcome offer falls short of other cards’ welcome offers.
- Its points are not as valuable as the rewards currencies on other cards.
Comparing the best cards for military members
| Card name | Best for | Rewards highlight | Annual fee | Recommended credit score |
|---|---|---|---|---|
| Chase Sapphire Reserve® | Travel credits |
|
$795 | 740-850 |
| The Platinum Card® from American Express | Luxury travel |
|
$695 | Good to Excellent |
| Navy Federal Credit Union cashRewards® Secured Card* | Building credit | Unlimited 1% cash back | $0 ($200 minimum security deposit) | 300-670 |
| PenFed Pathfinder® Rewards Visa Signature® Card* | Credit union members |
|
$95 (waived for existing PenFed Honors Advantage Members | Good/Excellent |
| USAA Cashback Rewards Plus American Express® Credit Card* | Military base spending |
|
$0 | 670-850 |
| Navy Federal Credit Union Visa Signature® Flagship Rewards Credit Card* | Low APR |
|
$49 annual fee* | 740-850 |
How to choose a card as a military member
It’s important to have a card that can serve you across your military career. Here’s how you can choose the best one.
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Consider your debt, income and monthly expenses before deciding on a new card. These factors will help you gauge which one is right for you based on boosted rewards categories, perks and ongoing APR.
Knowing your credit score will also help you find out what kind of cards are available to you. Your credit score is an important factor issuers use when determining your eligibility for credit products. The higher your score, the lower your risk for defaulting on your accounts.
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Some credit unions and banks exclusively serve military members and their families, and they often come with reduced interest rates and perks that can make them worthwhile options for consumer lending products. If you already have accounts with a military-focused credit union or bank it could be worth exploring its credit options because there may be loyalty benefits.
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Credit card rates, fees and rewards are all important considerations when deciding on a new credit card. Here are some tips:
- Don’t choose a card just because it has high rewards rates; choose one with rewards categories you’ll use.
- Consider a low-interest credit card if you plan to carry a balance.
- Research which credit issuers will waive or reduce annual and other fees for military members.
Consider using Bankrate’s Card Comparison Tool to help you see how your top picks match up side by side.
How the SCRA affects your credit card in the military
According to Military OneSource, a supportive resource for military members backed by the Department of Defense, “Creditors must reduce the interest rate on debts to 6 [percent] for liabilities incurred before you enter active duty.” This debt reduction applies to credit card interest rates, car loans, business obligations, student loans and other lending products.
Reduced interest rates can prove helpful when repaying debt, especially when they’re offered to you at no additional cost. Typically, if you want to reduce debt, you would do a balance transfer. This would include a balance transfer fee (anywhere between 3 and 5 percent) and you’ll have a little over one year to pay off your balance in most cases before you need to start paying interest again. The SCRA gives you an indeterminate amount of time to repay your debts at a reduced rate.
Maximizing your credit card while in the military
Using a credit card in the military shouldn’t be much different than if you weren’t in the military. You’re still subject to the same repayment requirements as non-military personnel, but you actually have a few more perks available to you. Here are some tips for making the most of your credit card while serving your country:
- Annual fee waivers: If you can get an annual fee waiver, or a reduced annual fee, place those cards at the top of your list. Waiving annual fees is a great way to get the best credit card perks without paying for them.
- Spending categories: Use your card for purchases in spending categories that have boosted rewards rate. This helps you maximize your card’s rewards rates.
- Perks and credits: Familiarize yourself with your card’s perks and credits, and figure out how to access them. Some cards have complicated requirements for earning certain credits, so don’t expect you’ll automatically earn the credits listed on your card’s landing page.
- Plan ahead: Your active service will eventually come to an end. Make sure you have a plan in place to move away from costly credit cards that will begin charging you annual fees once you’re retired.
- SCRA considerations: If you’re on active duty in the military and qualify for a reduced interest rate, you should take advantage of this. However, don’t let it be an excuse not to pay any balance you owe.
What’s next?
The bottom line
Military members can benefit from interest rate caps and waived fees on many of the top rewards credit cards, which is more than enough reason to apply. With cards offering high welcome bonuses or more lucrative perks like airport lounge access and travel credits, military personnel stand to gain a lot from the premium rewards cards that non-military members have to pay large fees to access.
Like other consumers, though, military members should try to avoid racking up debt they can’t afford to pay off. And once active-duty military service ends, those credit card military benefits will eventually come to a halt. Use credit responsibly despite all of the benefits offered to avoid accumulating debt that may be difficult to manage. With proper research and planning, military members can take advantage of the benefits offered by top credit cards and make the most of their financial situation while serving their country.
*Information about the PenFed Pathfinder® Rewards Visa Signature® Card, USAA® Cashback Rewards Plus American Express® Card and the Navy Federal Credit Union cashRewards Secured have been collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.
Frequently asked questions
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Active duty U.S. military members can have the annual fee reduced on certain American Express credit cards, including The Platinum Card® from American Express, in accordance with the SCRA and Military Lending Act. Service members must apply for the reduction, and American Express will assess each request individually.
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Chase reduces annual fees on all personal credit cards for active duty military members and their spouses, including premium cards like the Chase Sapphire Reserve, under the Military Lending Act.
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Military credit cards, like the Military STAR® credit card and options from Navy Federal Credit Union, are available to active service members. They offer perks and benefits that can help you build credit, access lower APRs and avoid foreign transaction fees. They’re designed for service members and their families and are accepted at military exchanges and commissaries.
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