The cap remains in effect for the duration of a servicemember’s active-duty service. The 6% cap applies to all debts incurred prior to entry into active-duty service, including student loans, credit cards, mortgages and car loans. For example, if you bought a car or a boat with a 12% loan prior to serving, you can request to have your interest rate lowered to 6%. Another important part of the credit card provisions are that most banks and credit card issuing companies will offer a refund on interest and annual fees for certain financial obligations that were incurred prior to a servicemember’s active duty military service.īanks will also lower the interest rates on loans that existed before the servicemember joined the military.
Under SCRA, credit card rates are capped at 6%. SCRA benefits start on the date when active duty orders are received, and SCRA coverage usually terminates within 30-90 days after the discharge date from active duty. military members can receive financial relief and protections under the Servicemembers Civil Relief Act (SCRA). What Are SCRA Credit Card Benefits?Īctive duty U.S. Many companies are retroactively lowering interest rates for balances placed AFTER your enlistment! Under the SCRA, 6% is the maximum interest rate credit card companies can charge, however, many institutions are choosing to offer even lower rates.Ĭonsidering my current circumstances, this is fantastic news.
Did you know many credit card companies are going above and beyond their legal obligations under the Service Members Civil Relief Act ?
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