Save money: more relief from credit card companies

  • Published
  • By Cindy Middleton
  • 17th Training Wing Legal Office
GOODFELLOW AIR FORCE BASE, Texas --  Some creditors are giving service members extra benefits for credit cards acquired AFTER military service began. This is a huge benefit for military members.

Generally, under the Service Members Civil Relief Act, active duty service members can notify their creditors to receive a maximum interest rate of 6 percent on any amounts owed prior to entering active duty status. This includes not just periodic interest charges, but also other finance charges and certain fees. For full-time active duty military, this SCRA protection begins the day the service member enters active duty. For Reservists or Guardsmen, it begins the day they receive their mobilization orders. However, some credit card issuers may even reduce your interest rate further than the SCRA requires. For instance, Discover Card, Capital One and Citibank all have programs for service members that go beyond the SCRA eligibility requirements and the maximum interest rate.

For example, the Discover Card rate for active duty members is locked in at 5.90 percent while on active duty and this includes dependents that carry their own card even if you are not on their account. In some cases, if you currently have a Discover Card and the interest rate is higher than 5.90 percent, Discover Card will credit or refund you the difference to include any annual fees, if you have any, accrued interest fees on purchases, payment fees, penalty fees and late fees you have paid since owning their card while on active duty. This applies retroactively as well, so you’ll likely be getting a refund. This rate is also locked in for up to one year after you leave active duty and applies to all accounts with Discover Card. But, you have to apply for the benefit in order to receive it. To apply for Discover Card’s program go to www.discover.com/scra and request benefits now.

Capital One also has a program with the interest rate for Capital One is 4 percent. Everything else is the same as with the Discover Card, including your spouse’s eligibility. To apply for Capital One’s program go to http://www.capitalone.com/about/military/ and select the “request benefits” button.

Finally, the Citibank program has an interest rate of zero percent for all military members and dependents, even if the spouse is not on your account; they will also credit or refund you the difference like Discover Card. Citibank includes store specific cards like BestBuy, Home Depot, Macy, Sears, Zales and others.

If you own any of these or other credit cards, you should definitely give them a call or go on-line to inquire about receiving a lower rate and also to possibly receive your credit or refund; even if you currently have a zero balance, you may be refunded the interest you have paid. Companies may require a written request, proof of military service, your leave and earning statement, proof of military service letter from virtual military personnel flight, a letter from your commander and/or a copy of your marriage certificate, if you are the spouse applying.

Checking into this benefit is well worth your time. In addition to credit card rate reduction, some of these companies also offer mortgage assistance and foreclosure protection for military members.

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