6 Ways Military Service Members Can Get a Lower Credit Card Interest Rate

1. Apply for Servicemembers Civil Relief Act (SCRA) Benefits

The Servicemembers Civil Relief Act (SCRA) is one of the main financial protections available to active duty personnel. It limits interest rates on certain financial accounts, like credit cards, to a 6% annual percentage rate (APR) while you're on active duty. Fees above 6% are automatically waived.

You can qualify for SCRA protections if you incurred debt before entering active duty, and you're currently serving or were recently discharged. Typically, SCRA benefits end within 30 to 90 days after your service ends.

Eligible service members must apply for SCRA benefits -- it's not usually automatic. To get SCRA benefits with your credit card, follow these steps:

1. Contact your credit card company and request SCRA benefits.
2. Provide your active-duty orders.
3. Wait for approval and retroactive credit adjustments (if applicable).

Some credit card issuers can pull your status from the Defense Department's SCRA database, which makes the process even faster.

2. Use Military Lending Act (MLA) Protections

The Military Lending Act (MLA) provides additional protections for service members, but it applies primarily to new credit obtained while you're already on active duty. Under the MLA, Military Annual Percentage Rates (MAPRs) are capped at 36%, and some credit card fees are waived.

While most major credit cards already fall well under 36% MAPR, some issuers extend even better terms to active duty service members under the MLA. This may include lower APRs, waived annual fees and foreign transaction fees, and more flexible repayment options.

3. Ask About Your Bank's Military APR Policies

Beyond legal protections, some banks voluntarily offer reduced interest rates to active duty military. These benefits are not legally required and vary widely, but they can significantly reduce your cost of borrowing.

Always ask your card issuer what military-specific benefits they offer. Many service members don't realize these perks exist until they inquire. Depending on the bank and specific credit card, you might get benefits like lower APR during deployment, or even an interest rate pause if you're deployed in a designated combat zone.

4. Improve Your Credit Score to Qualify for Better Terms

While the SCRA and MLA can help you qualify for a lower credit card interest rate, your credit score still plays a major role in your APR on new and existing cards. The better your credit score is, the lower your interest rate will be. Here are some tips for improving your credit score:

• Pay your credit card balance on time (payment history is 35% of your score).
• Keep your credit utilization to 30% or lower.
• Avoid opening multiple new accounts close together.
• Check your credit report for errors.

If you're getting deployed, don't let missed mail or interruptions in autopay affect your on-time payment history. Setting up paperless billing and secure online access before deployment can help prevent accidental late payments that negatively impact your credit score.

5. Request a Lower APR Directly

If you want a lower credit card interest rate, you can always ask your credit card company if it will adjust your APR. Your card issuer might be willing to lower your interest rate if you meet any of the following criteria:

• You've been a long-term customer
• You always pay on time
• Your credit score has improved

A quick call to your credit card company could save you hundreds, or even more, in interest charges over time.

6. Look Into Deployment-Specific Hardship Policies

Some credit card issuers offer special hardship programs for deployed military personnel, especially for those serving in combat zones or remote locations where you're not using your card much. These programs may include:

• Temporary 0% APR
• Deferred interest
• Reduced minimum payments
• Fee waivers
• Longer grace periods for payments

If you're deploying, ask your credit card company directly about hardship or deployment APR programs, even if you're already getting a low interest rate. And if you're not actively serving, you might still qualify if you're called to active duty as a reservist or National Guard member.