Credit & Banking + Loans & Debt

Everything you need to know about legal protections, cards & accounts, credit monitoring, and smart borrowing during service.

Last updated: September 8, 2025

1) Legal Protections You Should Know

SCRA — Servicemembers Civil Relief Act

Interest cap: Pre‑service debts (credit cards, auto, private student loans, etc.) are capped at 6% APR while on active duty, upon written notice to the lender.
Housing protections: Safeguards against evictions and foreclosures during qualifying service periods; special court procedures apply.
Leases: Termination rights for residential (and some auto/phone) leases with PCS or deployment orders ≥ 90 days; provide written notice and a copy of orders.
Enforcement: The U.S. Department of Justice (DOJ) enforces SCRA violations; legal assistance offices can help you assert rights.

DOJ: SCRA VA: SCRA Overview Legal Assistance (MOS)

MLA — Military Lending Act

MAPR cap: Sets a 36% Military APR limit on many forms of consumer credit to covered borrowers.
Contract terms: Prohibits certain terms (e.g., mandatory arbitration) and requires specific disclosures; applies at account opening.
Coverage: Generally covers active‑duty servicemembers and certain dependents; not all products are covered (e.g., some secured loans).

CFPB: Military Protections VA: MLA

2) Credit Cards & Accounts (issuer policies vary)

Many banks offer SCRA/MLA relief and military‑friendly policies. These can include reduced APRs, waived annual fees, and other customer‑service enhancements. Always verify current policies on the issuer’s site before applying.

American Express

SCRA/MLA relief may include waived annual fees on eligible cards.
Apply for benefits after account opening; documentation may be required.

AmEx Military Benefits

Chase

SCRA/MLA relief may include fee reductions and rate caps for eligible accounts.
Benefits vary by product; confirm at application.

Chase Military Banking

USAA / Navy Federal / PenFed

Military‑focused institutions with competitive rates and service.
Cards, checking/savings, auto loans, and mortgages tailored to servicemembers.

USAA Navy Federal PenFed

What to do next: List your targeted cards, check issuer military pages, and ask about SCRA/MLA handling before applying.

3) Free Credit Monitoring & Fraud Alerts

Free monitoring: Active‑duty and National Guard can enroll in free electronic credit monitoring with all three bureaus.
Active‑duty fraud alerts: Place a 12‑month alert that requires businesses to take extra steps before issuing credit in your name.
Security freezes: Consider freezing your credit at each bureau when appropriate; you can lift it temporarily to apply for credit.

CFPB: Servicemembers Equifax Active‑Duty Alert Experian Fraud Center TransUnion Credit Freeze

Loans & Debt — 1) Career‑Starter Loans (Commissioning)

Offered by military‑focused banks/credit unions to commissioning cadets/midshipmen or new officers; amounts and APRs vary by market.
Use carefully: Helpful for a car, uniform/PCS costs, or emergency buffer; avoid financing consumption or speculative investments.
Repayment: Know when payments start and whether autopay discounts exist; ask about prepayment penalties.

USAA Personal Loans Navy Federal Personal Loans PenFed Personal Loans

Loans & Debt — 2) Student Loans & Public Service Loan Forgiveness (PSLF)

PSLF eligibility: Military service qualifies as public service for PSLF on eligible federal Direct Loans while on an income‑driven repayment plan.
Track progress: File employment certification via the PSLF Help Tool and check payment counts annually.
Deferment/forbearance: Certain military service periods may qualify; but months in deferment/forbearance generally don’t count toward PSLF unless under special waivers.
Private loans: Ask lenders about military deferment or SCRA benefits; policies vary.

Studentaid.gov: PSLF Studentaid.gov Home VA Education (GI Bill)

Loans & Debt — 3) Auto & Personal Debt Tips

Use SCRA where eligible: Pre‑service auto/personal loans may qualify for the 6% cap; send written notice to lenders.
Shop rates: Compare Navy Federal, USAA, PenFed, and strong local credit unions; request out‑the‑door pricing to avoid add‑ons.
Avoid negative equity: Don’t roll old balances into a new car. If you must sell during PCS, consider private‑party sale to maximize value.
Insurance & taxes at PCS: Re‑shop insurance and check state MSRRA residency rules that can affect registration and tax obligations.

Military OneSource IRS: Armed Forces Tax Info CFPB: Servicemembers

Education only. Policies change — always verify with official sources (DoD, VA, DOJ, CFPB) and your lenders.