Active-duty military: SCRA, MLA, and free premium cards

Active-duty military servicemembers have access to two federal laws that significantly change the credit-card math: the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA). Combined with several issuers' military-friendly policies, these mean active-duty servicemembers can hold premium cards effectively for free. This guide covers what each law provides, which issuers honor it, and how to actually claim the benefits.

SCRA, Servicemembers Civil Relief Act

SCRA caps interest rates at 6% APR on debts incurred before active-duty service began. It also provides various legal and financial protections, eviction protection, court proceeding stays, etc., but for credit-card purposes, the 6% cap is the relevant piece.

Critically: most major issuers extend SCRA protection beyond the legal minimum, applying the 6% cap to debts incurred during service too, and several waive annual fees on cards entirely.

MLA, Military Lending Act

MLA caps the "Military Annual Percentage Rate" (MAPR) on loans and credit cards extended to active-duty servicemembers and their dependents at 36%. MAPR is broader than standard APR, it includes most fees, which means certain card structures can't be applied to MLA-covered cardholders.

Effective consequence: most major issuers waive annual feeson credit cards held by active-duty servicemembers and their dependents. Charging an annual fee on a card the cardholder isn't carrying a balance on would push the effective MAPR above 36%, creating MLA compliance risk. It's easier for issuers to just waive the fee.

Who qualifies

Both SCRA and MLA cover:

• Active-duty military servicemembers (Army, Navy, Air Force, Marines, Coast Guard, Space Force).
• National Guard and Reserves on active-duty orders of 30+ days.
• Commissioned Public Health Service and NOAA officers on active duty.
• For MLA: dependents of active-duty servicemembers (spouses, children).

Veterans (those who've completed active service) don't get ongoing SCRA or MLA protections, these are active-service-only.

Issuer-by-issuer treatment

American Express

Amex is widely regarded as the most generous to military cardholders:

• Annual fee waived on all consumer cards, including Amex Platinum ($895/year) and Amex Gold ($325/year).
• SCRA 6% APR cap applied to all card debt.
• All credits, lounge access, and benefits remain intact despite the fee waiver.

The Amex Platinum's ~$1,500 in marketing-listed credits + lounge access + Marriott/Hilton Gold status, all available for $0/year, is one of the best deals in personal finance for active-duty servicemembers.

Chase

Chase honors SCRA and waives annual fees on most cards during active duty. Premium cards including the Chase Sapphire Reserve and Sapphire Preferred have annual fees waived. Same for Chase Ink business cards.

Chase tends to require explicit SCRA invocation, submit a request through Chase's SCRA page or by phone with active-duty orders. Once on file, fee waivers apply.

Capital One

Capital One waives annual fees on cards held by SCRA-eligible servicemembers during active duty. The Venture X's $395 fee can be waived; the cardholder still gets the $300 portal credit, lounge access, and 10K anniversary miles.

USAA

USAA is the credit-card issuer of and for the military. Their cards are designed for servicemembers and veterans, they don't need to apply SCRA waivers because their cards don't have aggressive annual fees in the first place.

USAA Eagle Navigator World Elite Mastercard is their newest premium travel offering, with no FTX fee and travel rewards aimed at military lifestyles.

Navy Federal Credit Union

Navy Federal is one of the few credit unions that rivals national banks on credit cards. Open membership requires military, government, or family connection. Their Navy Federal Flagship Rewards is a strong premium card.

PenFed

Originally for military but now broader (open to anyone through a small donation). PenFed Pathfinder Rewards offers strong travel rewards with no FTX fee.

How to actually claim SCRA benefits

Get your documentation

You'll need either:

• SCRA letter from milConnect, the official DoD document confirming active-duty status. Request via scra.dmdc.osd.mil. Most issuers prefer this.
• Active-duty orders, particularly for orders of specific duration (30+ days for reserves/ guard).

Submit to each issuer

For each card you have:

• Find the issuer's SCRA / military benefits page (Google "[issuer] SCRA").
• Submit your SCRA letter or active-duty orders, account number, and request to apply protections.
• Most issuers process within 1-2 weeks. Annual fees retroactively refunded.

Note: pre-service debt vs in-service debt

Strict SCRA applies only to debts incurred before active duty began. But most major issuers extend the benefit voluntarily to all debts. Confirm with each issuer , there's no harm in asking.

Strategy implications for active-duty servicemembers

Premium cards become risk-free

With annual fees waived, the "is this premium card worth the fee?" calculation collapses. There's no fee. Just the credits, lounge access, status, and rewards , pure upside.

Strong setup for an active-duty servicemember:

• Amex Platinum (fee waived), Centurion + Priority Pass + Hilton/Marriott Gold + ~$1,500 in monthly credits.
• Chase Sapphire Reserve (fee waived), Sapphire Lounges + $300 travel credit + 10x portal hotels + transfer partners.
• Amex Gold (fee waived) , 4x dining/groceries.

All three at $0 annual fee = a setup that costs civilians $1,915/year combined, free for active-duty.

Capture the credits aggressively

Without the fee to amortize, every credit you capture is pure savings. Set up Apple subscriptions on the CSR, use Resy partner restaurants near base, etc.

Plan for end of service

When active duty ends, the SCRA waivers end too. Standard annual fees resume. Decide before that point:

• Will the credits still cover the fee at full price?
• If not, downgrade to a no-fee version of each card before the fee posts.

Recap

• SCRA caps APR at 6% on pre-service debts; most issuers extend it to all debts.
• MLA caps total cost (MAPR) at 36%, practical effect: most issuers waive credit-card annual fees during active duty.
• Amex, Chase, Capital One all waive annual fees on premium cards for active-duty servicemembers. Amex is most generous.
• Submit SCRA letter from milConnect to each issuer; processing takes 1-2 weeks.
• USAA, Navy Federal, and PenFed offer military-focused cards with strong rewards even without fee waivers.
• When service ends, fee waivers end. Plan downgrades or full-fee continuation before the next fee posts.