How to Maximize Credit Card Benefits as a Military Member

Service members and their families make a lot of sacrifices that are very different from having a normal job. But our version of work is very rewarding, and there are a lot of benefits that we can access. If you’re like us, and you like to travel, and you especially like heavily discounted or even free travel, then you’ve probably heard of some of those particular benefits.

One of our favorites is the fact that members of the military don’t pay most of the annual credit card fees. That may sound nice to begin with, but if you really understand the value of points and miles earned via credit card, it sounds… exhilarating! 

We’ve been collecting credit cards for years and our savings with this benefit is literally in the thousands – not including the value of the trips we’ve taken. Our last trip to the Domes Miramare in Corfu was worth well over $5,000, but we didn’t pay anything. Nor did we pay for the flight there.

But there is some simple science to making this all work. You have to know what exactly qualifies for these benefits, how to access them, and in what order to take advantage of them – the latter is now very well-known in my experience. 

Getting Credit Card Annual Fees Waived as a Military Member: SCRA and More

Let’s start with what most military members reference when they are talking about credit card benefits: “SCRA”, or the Servicemembers Civil Relief Act. This is a law that protects active duty military members and their families in many ways that go beyond the scope of credit cards, and MilitaryOneSource does an excellent job of summarizing them. Some benefits include:

• Cap of 6% on interest rates for debt incurred BEFORE joining the military
• The ability to terminate leases without penalty due to PCS, both residential and automobile
• The ability to vote in your home state

Notice how credit card fee waivers are NOT included – that’s because that is NOT required by law! Despite what your fellow service members may try to tell you, many credit card companies waive their annual fees for us as an added gesture, not because they have to. The major players, including Chase and American Express, do indeed waive annual fees for most cards.

You do have to request this privilege once you are on active duty, and credit card companies generally do refer to it as an “SCRA benefit”. Once they confirm your eligibility, you won’t be charged new annual fees, and you may even get a refund for fees already charged while you were on active duty.

Some other important things to note:

• Business cards are NOT eligible – if you are big into points and miles, you know how valuable these cards can be; paying the annual fee is usually worth it.
• Military spouses ARE eligible – be sure to request it for them, too! Make sure they are formally your dependent on the official side.
• For accounts opened AFTER you joined the military – you’ll need to request “MLA Benefits” (Military Lending Act) rather than SCRA. It’s another similar law; SCRA just mainly covers accounts that predate your military service.

In summary: if you haven’t done this already, contact each of your credit card issuers to request SCRA or MLA benefits be applied to your accounts (even if the name of those benefits isn’t really accurate). Here’s how you can do that.

Requesting SCRA Benefits from the Major Banks

In our experience, some of the best cards are issued by Chase and American Express – both who waive fees for SCRA-eligible military members. The process with them is really not very difficult, and just requires a small bit of effort.

You can call both Chase and Amex to request your benefits. However, the easiest way with Chase is to send them a message through the secure messaging portal online, while for Amex you can send a Live Chat message online.

Just mention that you started active duty military service on XXXX date and you are requesting SCRA/MLA benefits be applied to all your accounts. If you have a spouse, it doesn’t hurt to mention that they will be making a separate request for the same thing, but you’ll have to repeat the process on their account.

Your initial request will just be taken down for “review”, during which they will run your name through a database that links with DEERS. It doesn’t take very long, and you should receive confirmation within a few days. 

Remember – if you are dealing with an account that was opened BEFORE you joined the service, they like to refer to it as SCRA. If you are dealing with an account opened AFTER you joined, they like to call it MLA. It doesn’t really matter. I have found that Chase is the pickiest about this.

After Requesting SCRA Benefits

As mentioned, confirmation is relatively fast. You should receive information that indicates your annual fees will be waived (and maybe even refunded if already paid), your pre-service interest rate will be capped, and that your account will be re-reviewed for continuation of these benefits at some point.

I highly recommend monitoring your account to be sure the benefits are applied as promised. Most of the time, there’s no problem. But banks aren’t perfect, and you’ll want to catch any unwanted fees that come down the line.

Theoretically, new accounts you open with the same bank should automatically have these benefits applied, too. But the advice is the same as above – always verify. 

You will still enjoy any premium benefits that come with various cards: Priority Pass, Clear membership, Global Entry, points and miles… utilizing your military benefits does not eliminate any of that. This is precisely why this is such a valuable perk! More on some of that later.

Why You Shouldn’t Immediately Sign Up for the Most Premium Cards (i.e., the American Express Platinum Card)

It is not surprising to see how many military members carry around the fanciest, most expensive, most premium cards they can get there hands on. The Amex Platinum Card, for example, has an annual fee of nearly $700 that they are exempt from – while still enjoying several hundred dollars in airline and hotel credits, airport lounge access, hotel statuses, and more.

Here’s an unpopular opinion that will exponentially increase its value: wait. Don’t go straight for the most premium card you can find. Credit cards are a science, and those who do it right will get free travel for far longer than others.

The reason is that you can get the sign-up bonus on multiple Amex cards, but you must get them in the right order – from lowest-tier to highest. That would be Amex Green, Gold, and then Platinum. 

The Green Card consistently offers a sign-up bonus of around 40,000 points, and The Gold Card sits around 60,000 points. If you jump straight for The Platinum Card (for around 80,000 points), you can never earn those easy, free, 100,000 points when you combine them. That’s a LOT of points that can get you a ton of free stuff.

The Platinum Card will always be there, and depending on your credit and spending habits, you may be able to pick up each card (in order) in a year or so. Don’t leave free points on the table!

A Quick Guide on How to Best Use Points, Miles, and Other Credit Card Benefits

We have many tips and tricks for how to redeem award travel, utilize status, and otherwise take advantage of travel perks, and we probably need multiple articles to cover them all. But while we’re on the subject, here are some important ones to keep in mind:

Not all redemptions are created equal. Don’t be so quick to spend your newly deposited points or miles on the first flight or hotel that comes to mind. Seek out opportunities that cost a lot of cash, and redeem award travel on those. Would you rather spend a few nights at a random roadside Holiday Inn, or cash in at the fancy InterContinental?

Consider cards with automatic loyalty status. You’re more likely to get upgrades and other free stuff if you have status with an airline or hotel. For example, the Marriott Bonvoy Boundless Visa card often offers a comparable points bonus to the American Express Marriott Bonvoy Brilliant card. The latter offers automatic Platinum Elite status for as long as you have the card, plus a ton of other perks. You’ll get free breakfast, late checkout, and more during your vacations.

Consider booking what’s cheapest, then upgrading. Many people are understandably excited to book their first ever business class or first class flight with their points and miles. But you can get serious value out of upgrading after the fact. Book economy upfront, whether with cash or miles, and then wait for an upgrade offer to roll in – whether that upgrade is charged in cash or miles. Your award travel will last much longer this way.

Don’t count out business cards. Yes, you’ll have to pay annual fees, but they are rarely more than $100. However, this opens up a whole different set of points and miles bonus opportunities. You don’t really need to be a business owner to get one (no one is checking…) and they don’t count towards Chase’s 5/24 rule or American Express’ five-card rule.

Study each card’s benefits and use them wisely. The Amex Platinum offers hotel, airline, and Uber credits that should not go to waste – they are free money when you aren’t paying the annual fee. The aforementioned Marriott Amex has monthly dining credits that are also free money. The Chase Sapphire Reserve offers a general, annual travel credit – free money. Get it?