Men and women who serve in the United State military are entitled to special rates on their credit cards while they are on active duty. The Service Members’ Civil Relief Act was originally created in 1940 to help soldiers with their debt while they were fighting in World War II. The law is still in existence today and it allows men and women who are in the military to pay a maximum of 6% on their credit card debt that pre-dates their active duty.
Many banks and lenders go beyond what is stipulated in the SCRA and charge the same low interest rate on debt incurred by service members while they are on active duty, not just on debt that predates it. Others charge 0% interest on pre-service debts. All are required to provide a service member’s spouse with the same credit card terms as well, so that means if a wife is serving in Iraq, for example, her husband back home in California will enjoy the same credit card terms as his wife in the armed forces.
Additionally, some banks and lenders will allow people in the armed forces to cease making their minimum monthly payments while they are on active duty. Once they are no longer on active duty, they will have to make the minimum monthly payments again.
Another credit card deal for people in the armed forces is the waiver of all fees and penalties while the armed forces member is on active duty. This will not be true of all lenders – it’s a voluntary act made by the bank or lender. However, if you’re a member of the armed forces and you discover that your credit card company is not waiving these fees and penalties, it could be a strong bargaining chip for you to complain.
To learn more about credit card deals for people in the armed forces, credit cards, special deals on credit cards or any other financial topic, be sure to consult with a financial professional.
Photo credit: The Library of Congress