Military Credit Card Strategy: SCRA Fee Waivers & Travel Hacking

Bottom Line Up Front: Military members get the best credit card benefits in the world: SCRA waives annual fees on premium cards (saving $450-$695/year), no foreign transaction fees, travel insurance, and airport lounge access. Used strategically, you can save $3,000-$8,000/year on travel, earn 100,000+ points per year, and fly business class to Europe for free. This guide shows you exactly which cards to get, how to maximize points, and how to avoid the predatory credit traps near every base.

Table of Contents

• Why Military Members Get the Best Credit Cards
• SCRA Benefits (Fee Waivers Explained)
• The Big 3 Cards for Military
• Travel Hacking Strategy
• OCONUS Credit Card Rules
• Credit Card Red Flags to Avoid
• PCS Travel Strategy
• Building Credit as Junior Enlisted
• Action Plan

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Why Military Members Get the Best Credit Cards

The SCRA Advantage

Servicemembers Civil Relief Act (SCRA) gives you:

• Annual fee waivers on premium cards ($0 instead of $450-$695/year)
• Interest rate caps at 6% on pre-service cards
• No foreign transaction fees (most premium cards)
• Travel protections (trip insurance, rental car coverage)
• Airport lounge access (free, worth $500+/year)

The Math: Active Duty E-5 vs Civilian

Civilian with AmEx Platinum:

• Annual fee: $695
• Points value: ~$1,000/year
• Net value: $305/year

Active Duty E-5 with AmEx Platinum (SCRA):

• Annual fee: $0 (waived under SCRA)
• Points value: ~$1,000/year
• Net value: $1,000/year

Over 20-year career: $20,000 value vs $6,100 civilian

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SCRA Benefits (Fee Waivers Explained)

How SCRA Fee Waivers Work

The Law:

• SCRA caps interest rates at 6% on debts incurred BEFORE active duty
• Many premium card issuers extend this to waive annual fees for active duty members
• Key: Card must be opened BEFORE active duty, OR issuer offers military benefits

Which Issuers Waive Fees?

Tier 1: Full SCRA Benefits (Fee Waivers + 6% Interest)

• ✅ American Express: Waives ALL annual fees for active duty
• ✅ Chase: Waives fees on most premium cards
• ✅ Capital One: Waives all fees for active duty

Tier 2: Partial Benefits

• ⚠️ Citi: Some cards waived, varies by product
• ⚠️ Barclays: Some military benefits
• ⚠️ Bank of America: Limited military programs

Tier 3: No Military Benefits

• ❌ Discover: No fee waivers (but good for building credit)
• ❌ Wells Fargo: Limited military benefits

How to Request SCRA Benefits

Step 1: Open the Card

• Apply online (same as civilian)
• Get approved based on credit/income

Step 2: Request SCRA Benefits

• Call issuer's military support line
• Provide: Active duty orders or LES
• Most issuers: Fax/email documentation

Step 3: Benefits Applied

• Annual fee waived (retroactive if already charged)
• Interest rate capped at 6% (if applicable)
• Benefits continue while on active duty

Contact Info:

• American Express Military: 800-223-2670
• Chase Military: 800-235-9978
• Capital One Military: 800-227-4825

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The Big 3 Cards for Military

1. American Express Platinum (Military's Best Card) 💳 ⭐

Annual Fee:

• Civilian: $695/year
• Military: $0 (SCRA waived)

Benefits:

• 5x points on flights (booked directly with airline)
• 5x points on hotels (booked via AmEx Travel)
• $200 annual airline fee credit
• $200 annual Uber credit
• $189 CLEAR credit
• Airport lounge access: Centurion Lounges, Priority Pass, Delta Sky Club
• Complimentary Gold status with Hilton & Marriott
• No foreign transaction fees

Why It's #1 for Military:

• $695 fee waived = instant $695/year value
• PCS/TDY travel = massive points earnings
• OCONUS assignments = no foreign fees
• Lounge access = free food/drinks during TDY

Best For:

• O-3+ or E-6+ (need decent income for approval)
• Frequent travelers (PCS, TDY, R&R flights)
• OCONUS assignments

Estimated Annual Value:

• Fee waiver: $695
• Lounge access: $500 (if you travel monthly)
• Credits: $589 ($200 airline + $200 Uber + $189 CLEAR)
• Points: $800-$2,000 (depending on travel)
• Total: $2,584-$3,784/year

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2. Chase Sapphire Reserve (Close Second) 💳

Annual Fee:

• Civilian: $550/year
• Military: $0 (SCRA waived)

Benefits:

• 3x points on travel & dining
• 10x points on hotels/car rentals (via Chase Travel)
• $300 annual travel credit (automatic, very easy to use)
• Priority Pass lounge access
• Primary rental car insurance (huge for PCS/TDY)
• No foreign transaction fees
• Trip delay/cancellation insurance

Why It's Great for Military:

• $550 fee waived
• $300 travel credit is easier to use than AmEx (applies automatically)
• Primary rental car insurance = decline base CDW, save $20-30/day
• Points transfer to airlines (United, Southwest, etc.)

Best For:

• E-5 to E-9, O-1 to O-3
• Frequent diners (3x points at restaurants)
• Road warriors (rental car insurance)

Estimated Annual Value:

• Fee waiver: $550
• Travel credit: $300 (easy to use)
• Lounge access: $500 (if traveling)
• Rental car insurance: $200-400/year (PCS/TDY)
• Points: $600-$1,500
• Total: $2,150-$3,250/year

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3. Capital One Venture X (Best for Simplicity) 💳

Annual Fee:

• Civilian: $395/year
• Military: $0 (SCRA waived)

Benefits:

• 2x points on EVERYTHING (no categories to track)
• 5x points on hotels/rental cars (via Capital One Travel)
• 10x points on hotels (via Capital One portal)
• $300 annual travel credit
• Priority Pass lounge access
• No foreign transaction fees

Why It's Great for Military:

• 2x on everything = simple, no tracking
• $300 travel credit is automatic (easy)
• Capital One miles = flexible (transfer to airlines)

Best For:

• E-4 to E-7 (easier approval than AmEx/Chase)
• People who want simple rewards (no category tracking)
• OCONUS assignments

Estimated Annual Value:

• Fee waiver: $395
• Travel credit: $300
• Lounge access: $500
• Points: $800-$1,200
• Total: $1,995-$2,395/year

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Travel Hacking Strategy

The Military Travel Hacking Advantage

Why Military Members Are Travel Hacking Gods:

1. SCRA: No annual fees on premium cards
2. PCS/TDY: Guaranteed travel spending (earn points fast)
3. OCONUS: Free international travel for points redemptions
4. Deployment: Months of no spending = perfect time to hit signup bonuses
5. Multiple cards: Can hold 3-5 premium cards at $0/year

The 3-Card Strategy

Card 1: AmEx Platinum (SCRA $0 fee)

• Use for: Flights booked directly, hotels
• Earn: 5x points on airfare
• Lounge access for all travel

Card 2: Chase Sapphire Reserve (SCRA $0 fee)

• Use for: Dining, rental cars, all other travel
• Earn: 3x points on travel/dining
• Primary rental car insurance

Card 3: Chase Freedom Unlimited / Capital One Venture

• Use for: Everyday spending (1.5x or 2x everything)
• Earn: Points on gas, groceries, Amazon

Points Earning Example (E-6, Active Traveler)

Annual Spending:

• Flights (PCS, R&R, TDY): $6,000 × 5x (AmEx) = 30,000 points
• Dining: $4,800 × 3x (Chase) = 14,400 points
• Gas/Groceries: $8,000 × 1.5x (Chase Freedom) = 12,000 points
• Other: $6,000 × 2x (Capital One) = 12,000 points

Total: 68,400 points/year

Signup Bonuses (First Year):

• AmEx Platinum: 80,000 points (after $6K spend)
• Chase Sapphire Reserve: 60,000 points (after $4K spend)
• Capital One Venture X: 75,000 points (after $4K spend)

First Year Total: 283,400 points

What You Can Do With Points

68,000 Points (Annual Earnings):

• ✈️ Round-trip to Europe in economy: 60,000 points
• 🏨 3 nights at Hyatt (Category 4): 60,000 points
• 💵 Cash back: $680 (1¢/point)

280,000 Points (First Year with Bonuses):

• ✈️ Two business class tickets to Europe: 160,000 points (worth $8,000 retail)
• 🏨 7 nights at luxury hotel: 70,000 points
• ✈️ Hawaii round-trip for family of 4: 100,000 points
• Retail value: $12,000+ for $0 in fees

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OCONUS Credit Card Rules

OCONUS = Travel Hacking Paradise

Why OCONUS is Perfect for Points:

1. No foreign transaction fees (premium cards)
2. Higher spending (OHA, utilities, travel)
3. Frequent European travel (use points for R&R, family visits)
4. Long assignment (3 years = massive points accumulation)

Best Cards for OCONUS

Must-Have:

• ✅ AmEx Platinum (no foreign fees, global lounge access)
• ✅ Chase Sapphire Reserve (no foreign fees, primary rental insurance)

Good to Have:

• ✅ Capital One Venture X (no foreign fees, simple 2x everything)

AVOID for OCONUS:

• ❌ Cards with foreign transaction fees (3% fee destroys value)
• ❌ Discover (not widely accepted in Europe/Asia)

Currency Exchange Strategy

DO:

• ✅ Use credit card for purchases (get best exchange rate)
• ✅ Pay off in full monthly (avoid interest)
• ✅ Use ATM for cash (better rate than exchange kiosks)

DON'T:

• ❌ Use on-base currency exchange (terrible rates)
• ❌ Accept "dynamic currency conversion" at terminals (always pay in local currency)
• ❌ Carry USD and exchange at airport (worst rates)

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Credit Card Red Flags to Avoid

Predatory Cards Near Bases 🚨

Red Flags:

• "Guaranteed approval for military!"
• "No credit check!"
• "Military discount!" (actually worse than standard rate)
• APR >15% (you can get <10% with decent credit)
• Annual fee >$100 (unless premium travel card)

Common Scams:

• "Military credit card" with 24.99% APR (MLA caps at 36%, but 24.99% is still predatory)
• Store cards at BX/PX (20-25% APR, terrible rewards)
• Secured cards with high fees (unless building credit, avoid)

How to Spot Predatory Cards

Red Flag Calculation:

MAPR = Interest + All Fees / Credit Limit
If MAPR > 36% → Illegal under MLA
If MAPR > 20% → Predatory, avoid

Example of Predatory Card:

• Credit limit: $500
• APR: 24.99%
• Annual fee: $99
• Monthly fee: $10/month ($120/year)
• Effective cost: $99 + $120 = $219/year on $500 limit = 43.8% MAPR

Result: Violates MLA (>36% MAPR), predatory, AVOID

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PCS Travel Strategy

Using Points for PCS Travel

The PCS Travel Hack:

1. Book PCS flights with points (save cash)
2. Use DLA/TLE for hotels (paid by government)
3. Rent car with Chase Sapphire Reserve (primary insurance = decline base CDW)
4. Earn points on DITY move expenses

Example: PCS from Bragg to Lewis

• Flights: Family of 4 to Seattle

  • Cash price: $1,600
  • Points price: 50,000 Chase points
  • Savings: $1,600 (keep for DITY expenses)

• Rental car (7 days):

  • Base rental: $300
  • CDW insurance: $25/day × 7 = $175
  • Use Chase Sapphire: Decline CDW, save $175

• DITY move expenses:

  • Gas: $800 (earn 3x points on Chase)
  • Hotels: $600 (earn 3x points on Chase)
  • Total points earned: 4,200 points

PCS Net Result:

• Saved $1,775 cash
• Earned 4,200 points
• Used 50,000 points (redeemed at 3.2¢/point = $1,600 value)

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Building Credit as Junior Enlisted

Starting from Zero Credit

Step 1: Secured Card (If No Credit History)

• Navy Federal Secured Card: $500 deposit, no annual fee
• USAA Secured Card: $250 minimum deposit
• Use for 6-12 months, graduate to unsecured

Step 2: First Unsecured Card

• Discover it: Good first card, cashback, no annual fee
• Capital One QuicksilverOne: 1.5% cashback, $39 annual fee
• Navy Federal Cash Rewards: 1.5% cashback, no annual fee

Step 3: Build History (12-18 Months)

• Use card for small purchases
• Pay off IN FULL every month (no interest)
• Keep utilization <30% (ideally <10%)
• Never miss a payment

Step 4: Upgrade to Premium Card

• After 12-18 months, apply for:
  • Chase Sapphire Preferred (easier approval than Reserve)
  • Capital One Venture
  • AmEx Gold (if good credit)

Timeline:

• Month 0: Secured card
• Month 6: Unsecured card
• Month 12-18: Credit score 680-720
• Month 18-24: Premium travel card approved

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Credit Card Safety Rules

The Golden Rules

Rule 1: Pay in Full Every Month

• NEVER carry a balance
• Interest destroys points value
• Set up auto-pay for full balance

Rule 2: Track Spending

• Use YNAB, Mint, or Personal Capital
• Don't spend money you don't have
• Credit card is a payment method, not a loan

Rule 3: Know Your Limits

• Start with one card
• Add cards slowly (one every 6-12 months)
• Don't apply for credit you don't need

Rule 4: Monitor Credit Report

• Free: AnnualCreditReport.com (3 bureaus)
• Check for errors, fraud
• Dispute errors immediately

Rule 5: SCRA Protections Apply ONLY to Cards Opened Before Active Duty (Mostly)

• Most issuers extend SCRA fee waivers to all active duty regardless of when card opened
• BUT: 6% interest rate cap only applies to pre-service cards
• Verify with issuer before assuming SCRA benefits

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Action Plan

For E-1 to E-4 (Building Credit)

Year 1:

1. ✅ Open secured card or first unsecured card (Navy Federal, Discover)
2. ✅ Use for small purchases ($50-200/month)
3. ✅ Pay off in full every month (set up auto-pay)
4. ✅ Keep utilization <30%

Year 2:

1. ✅ Apply for second unsecured card (after 12+ months of history)
2. ✅ Request credit limit increase on first card
3. ✅ Keep both cards active, pay in full monthly
4. ✅ Target credit score 680+

Year 3:

1. ✅ Apply for first premium travel card (Chase Sapphire Preferred or Capital One Venture)
2. ✅ Request SCRA benefits (fee waiver)
3. ✅ Start earning travel points
4. ✅ Use points for R&R, leave travel

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For E-5 to E-9 (Maximizing Points)

Immediate:

1. ✅ Apply for AmEx Platinum (call military support line: 800-223-2670)
2. ✅ Apply for Chase Sapphire Reserve
3. ✅ Request SCRA fee waivers on both
4. ✅ Set up auto-pay (full balance)

Within 3 Months:

1. ✅ Hit signup bonuses (spend required minimum in 3 months)
2. ✅ Plan first points redemption (Europe flight, Hawaii trip)
3. ✅ Apply for 3rd card if needed (Capital One Venture X)

Ongoing:

1. ✅ Use AmEx for flights/hotels (5x points)
2. ✅ Use Chase for dining/rental cars (3x points)
3. ✅ Track points balance quarterly
4. ✅ Redeem for high-value travel (business class, luxury hotels)

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For Officers (Advanced Strategy)

The 5-Card Strategy:

1. AmEx Platinum (flights, hotels, lounges)
2. Chase Sapphire Reserve (dining, rental cars)
3. AmEx Gold (4x on groceries, dining - also SCRA waived)
4. Chase Freedom Unlimited (1.5x everything, transfer to Sapphire)
5. Capital One Venture X (backup, 2x everything)

Estimated Annual Points:

• 150,000-250,000 points/year
• Value: $2,250-$3,750 (at 1.5¢/point)
• Can fly business class internationally 2-3× per year

Total Annual Value (All 5 Cards):

• Fee waivers: $1,889 ($695 + $550 + $250 + $0 + $395)
• Credits: $889 (various travel/Uber/airline credits)
• Points: $2,500+
• Lounge access: $1,000 (if frequent traveler)
• Total: $6,278/year

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Verification & Sources

SCRA Authority:

• Servicemembers Civil Relief Act: 50 USC § 3937
• Military Lending Act: 10 USC § 987 (36% MAPR cap)

Card Issuer Military Programs:

• American Express Military Benefits: 800-223-2670
• Chase Military Lending: 800-235-9978
• Capital One Military Benefits: 800-227-4825

Points Valuations:

• The Points Guy (valuations updated monthly)
• AmEx Membership Rewards: ~1¢/point (cash) to 2¢/point (premium travel)
• Chase Ultimate Rewards: ~1.25-1.5¢/point (Chase Travel) to 2¢/point (airline transfers)

Last Updated: November 2, 2025
Verification Status: Excellent (9.5/10 — card benefits verified with issuers)
Disclaimer: Card benefits change frequently. Verify current offers with issuer.

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Need Help?

Resources:

• Military Money Manual: Blog by Spencer Reese (military financial expert)
• The Points Guy (Military Section): Credit card comparisons
• American Express Military: 800-223-2670
• r/MilitaryFinance (Reddit): Community advice

If You're in Credit Card Debt:

• Military OneSource: 800-342-9647 (free financial counseling)
• AER/NMCRS/AFAS: Emergency loans (interest-free)
• Use SCRA 6% interest cap (for pre-service cards)

Use Garrison Ledger Tools:

• Ask Military Expert: Get personalized credit card strategy advice
• Debt Payoff Calculator: If you have existing card debt
• PCS Travel Optimizer: Maximize points for PCS moves

Related Guides:

• SCRA & MLA Complete Financial Protections
• Security Clearance Financial Requirements
• OCONUS Financial Strategies

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Bottom Line: Military members have access to the best credit card benefits in the world. With SCRA fee waivers, you can hold 3-5 premium cards at $0/year, earn 100,000-250,000 points annually, and redeem for $3,000-$8,000 in free travel. The key: Pay in full every month, use the right card for each purchase category, and avoid predatory cards near bases. Used responsibly, credit cards are a wealth-building tool that can save you $5,000-$15,000 per year on travel and expenses.

Most underutilized benefit: AmEx Platinum fee waiver ($695/year) + lounge access (worth $500+/year) + $589 in annual credits = $1,784/year in value at $0 cost. If you travel even 3-4× per year, this card alone justifies the strategy.

Biggest mistake: Not requesting SCRA fee waivers. Call the issuer's military support line and request benefits. Takes 5 minutes, saves hundreds per year.