A military credit card can be any credit card that makes sense for members of the armed forces. These cards may have extra features that especially benefit military members, their families and those who previously served. In other cases, the rewards categories, interest rates and other benefits may be geared toward someone in the military. These cards may be issued through a large bank or military chartered credit union.
How Are Military Credit Cards Different From Regular Credit Cards?
Military credit cards are not necessarily different from regular credit cards—in fact, some of the best military cards are also great choices for civilians. However, military members (especially those on active duty) may also have access to extra protections including rate reductions, fee waivers or elevated rewards.
The Servicemembers Civil Relief Act (SCRA) caps the interest rates active duty members pay on debt incurred before entering active duty to 6%, which includes credit debt.
However, SCRA only applies to accounts opened prior to your active duty. If you are an active duty service member applying for a new credit card, you’ll be covered under the Military Lending Act (MLA). The MLA places a cap of 36% military annual percentage rate (MAPR).
Military annual percentage rate is similar to traditional credit card APR, but represents the full cost of borrowing money in a single percentage. These include finance charges, application fees and any other costs incurred. Technically, active duty personnel may still be charged an annual credit card fee, but these fees must be considered reasonable compared to the top banks and in months where there is no balance, additional protections may apply.
Because calculating MAPR can be complex, card issuers like Chase and American Express have historically waived annual fees, out of an abundance of caution. Some cards, including the Power Cash Rewards Visa Signature® Card*, may offer additional rewards to qualifying military members. USAA caps APR on debt obligations before active duty at a mere 4% APR.