How to Choose the Best Credit Cards for Military Spouses

Military spouses and their families have unique financial needs, with frequent relocations, deployments, and moving expenses, so having the right credit card is important. But with so many credit cards available, choosing the best one can feel overwhelming. In this guide, we'll break down the most important factors military spouses should consider when choosing a credit card.

Understand Your Military Spouse Benefits Under Federal Law

Military spouses receive certain benefits under federal law, namely through the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA). Before you start shopping for a credit card and comparing features, it can be helpful to understand these protections. They can impact which credit cards deliver the most value to military spouses.

• Servicemembers Civil Relief Act (SCRA): The SCRA provides interest rate and fee protections for credit accounts opened before active duty service. The SCRA puts a 6% interest rate cap on eligible pre-service debt, and can waive credit card fees, among other things.
• Military Lending Act (MLA): The MLA applies to credit cards opened during active duty. It caps the Military Annual Percentage Rate (MAPR) at 36%, which includes most fees. But many credit card issuers go beyond MLA requirements by waiving annual credit card fees for military spouses, even for premium cards.

Consider Your Spending Habits and Financial Goals

The best credit cards for military spouses aren't a one-size-fits-all. It depends on your lifestyle, spending habits, and priorities. For example, a frequent traveler might want a card with airline lounge access and hotel perks, while another person may only want simple cash back rewards.

Here are some questions that can be helpful to ask yourself when choosing a credit card:

• Where are you spending money? Think about your main spending categories and figure out where your money is going: groceries, gas, dining, travel, base-related expenses, or something else. Choosing a card that rewards your largest spending categories will provide the biggest benefits.
• How do you want to receive rewards? Credit cards typically reward you in one of three forms: cash back, travel points, or retailer-specific rewards. Cash back cards can be great for military spouses who mainly spend in a few categories. Travel points are ideal for families who travel often, whether for PCS moves, TDYs, or leisure. If you prefer to shop at big box retailers like Amazon or Costco, consider a card with store-specific rewards.
• What are your financial goals? Consider your primary financial goals right now. Are you trying to build credit, maximize rewards on everyday spending, or want help paying for deployment or PCS travel expenses? Picking a credit card that aligns with your financial goals can help you narrow down your choices.

Look for Credit Card Issuers With Military-Friendly Perks

Some card issuers are especially generous toward military spouses and their families, offering benefits that go beyond SCRA and MLA requirements.

For example, certain credit card companies waive annual fees for military spouses and active duty cardholders under MLA, even for premium cards. This gives cardholders thousands of dollars in travel and lifestyle perks without a steep annual fee.

Alternatively, if you open a card with a military-friendly credit union, you might be able to get below-average APRs, excellent customer service, and secured credit cards designed for credit building.

Look at the Travel Benefits

The average military family moves every two to three years, according to the U.S. Defense Department. Because of that, travel-focused credit cards for military spouses can offer tremendous financial value, even if you're moving domestically.

Here are some key travel benefits to consider when choosing a credit card:

• Airport lounge access: Premium travel credit cards often include perks like Priority Pass lounge access and airline-specific lounges. Having lounge access during TDYs or long PCS travel days can make the journey much smoother. Plus, many lounges have free food and Wi-Fi.
• Hotel status: PCS relocations often require a hotel stay. Credit cards that provide instant status with hotel chains can sometimes offer free breakfast, room upgrades, bonus points, and other features that can make the travel experience more enjoyable.
• Travel insurance: If your family relocates often, or if you enjoy traveling, you could benefit from a credit card that offers travel insurance protections. Premium travel cards often provide coverage for trip delays, trip cancellations, lost luggage, and rental car damage. These coverages can provide financial protection if something goes wrong.
• Foreign transaction fees: For military spouses living overseas, it's important to choose a card with no foreign transaction fees. Typically, foreign transaction fees are 1% to 3% of each payment, which can add up quickly.

Evaluate the Rewards-to-Cost Ratio

Military spouses typically get annual credit card fee waivers through the MLA, but it's not a guarantee. As you're comparing credit cards, consider whether the rewards justify the card's costs. You should pay close attention to these elements:

• Annual fees (up to $700+ for premium cards)
• APR (if you're carrying a balance)
• Foreign transaction fees (can be 1%-3%)
• Authorized user fees (if adding another person)

You should also calculate how much you spend each year in the bonus categories, and decide whether the card's benefits will outweigh the out-of-pocket costs. For instance, if you're getting $250 in cash back on grocery spending, and the card has a $600 annual fee, it's probably not worth it.

Check for Deployment-Friendly Features

When it comes to managing your finances, overseas deployments can create challenges for military spouses, especially when it comes to time zone differences, security risks, and the possibility of missing payments. Look for credit cards with these features:

• Fraud protection: When you're living overseas, real-time alerts, one-tap card lock/unlock, and military-friendly customer support are valuable.
• Flexible payment options: Look for credit cards with built-in features like payment extensions, hardship programs, and the ability to process payments from overseas.
• Easy account management: When you're in another country, it can be helpful to have access to online account management tools or a mobile app. You can't visit branch locations, and the customer service hours may not line up with your time zone.

Final Thoughts

The best credit cards for military spouses depend on your lifestyle, spending habits, and financial goals. By evaluating rewards, fees, travel perks, and issuer military policies, you can select a card (or a combination of cards) that delivers maximum value and helps you build a strong financial foundation.