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How to Pick the Best Military Credit Card

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pick a military credit card

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Active-duty and retired military members can often qualify for some seriously nice credit card benefits that civilians can’t. But that doesn’t mean choosing the best credit card for military personnel is easy.

That’s because, just like for civilians, military members have to decide which credit card rewards, benefits and perks best fit their particular needs. Yes, active-duty military members get the benefits the Servicemembers’ Civil Relief Act (SCRA) mandates — like waived fees (including annual fees) — but some issuers really go above and beyond when it comes to service-member benefits.

But how do you go about deciding which one you want? Do you pick the card that offers a low APR during active duty, or is the card with the fixed low interest rate better for your family?

When selecting the best credit card for you, it’s always a good idea to compare your options. Also keep in mind that not all issuers publish all of the benefits available to military personnel on their websites, so calling to get full details can be very helpful.

Also be sure to read the terms and conditions carefully when determining if a card is right for you. And it’s important to know where your credit stands before you apply for a new piece of plastic. If you don’t have really good credit, you might not qualify for premium cards that offer a lot of rewards and benefits. And, if you don’t qualify, you certainly don’t want to risk getting that hard inquiry (causing a ding to your credit scores) only to be denied. To find out, you can view two of your credit scores for free on Credit.com.

Whether you’re a new recruit, a long-time service member or even a veteran nearing retirement, here are four of our favorite credit cards for military members, which offer a range of benefits and rewards to suit your particular needs and interests.

Our Pick for Travelers: The Platinum Card from American Express

American Express’ premier travel rewards card isn’t just for military personnel, but American Express does waive the $550 annual fee for active duty service members under the SCRA, which can make this card very attractive.

The Benefits

The platinum card is American Express’ premium travel card, so it can be a great companion for frequent travelers. That’s because cardholders receive five times the membership rewards points on airfare booked directly with airlines or through American Express’ travel portal (you can read our review of the American Express Platinum Card).

Cardholders receive a wide array of benefits with the American Express Platinum credit card, including entry into carrier airport lounges, Priority Pass Select lounges and the American Express Centurion lounges. Cardholders may also earn elite status with numerous hotel and car rental companies. In addition, cardholders receive a $200 annual credit toward airline fees such as baggage fees, flight change fees and seat-selection fees. Additionally. cardholders receive up to $200 for Uber rides annually ($15 each month with an additional $20 in December) as well as complimentary benefits with an average total value of $550 at Fine Hotels & Resorts. Learn More

For each dollar spent, cardholders earn one point in the Membership Rewards program, and double points when they make travel reservations on the American Express Travel website. These points can then be redeemed for many rewards, including gift cards, merchandise and travel reservations. Alternately, cardholders can transfer their points to miles with several different airlines’ frequent-flier programs, or to points with multiple hotel programs.

The Drawbacks

For civilians, this card’s annual fee of $550 is among the highest of all premium reward cards. And while this card offers numerous benefits, most of them are geared toward frequent travelers, so those who rarely travel will miss out on its most valuable perks. As a charge card, the Platinum does not offer customers the option of extending payment by default, although they can choose to enroll in the Pay Over Time program, which gives cardmembers the option of carrying a balance when necessary.

The Platinum Card® from American Express

Apply Now
on American Express's secure website
Card Details
Intro Apr:
N/A

Ongoing Apr:
N/A

Balance Transfer:
N/A

Annual Fee:
$550

Credit Needed:
Excellent-Good
Snapshot of Card Features
  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Up to $200 for Uber rides annually. Credit and Uber VIP status available to Basic Card Member only.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards® points on eligible hotels booked on amextravel.com.
  • As a Platinum Card Member, you can enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Terms Apply.

Card Details +

Our Pick for Cash Back Rewards: USAA Cashback Rewards Plus American Express Card

Cardholders get 5% cash back on the first $3,000 spent at military bases every year and on gasoline, 2% cash back on the first $3,000 spent on grocery purchases each year, and unlimited 1% cash back on other purchases. USAA also offers a deployment APR of 4% for up to 12 months. (The APR is a variable 12.90% to 26.90% after.)

The Benefits

This card offers low variable APRs during deployment and on charges made during a permanent change of station and for a year afterward. The card also offers a rebate on all interest charged while you were serving in a qualified military campaign (you must notify USAA within six months of completion).

The Drawbacks

USAA cards in general don’t offer big sign-up bonuses, and that goes for this card as well. Also, if you’re a veteran or retired member of the military, you won’t get as much out of this card as an active service member might, so another rewards card could be more beneficial, depending on your situation.

Also, the card is available only to USAA members. Membership is available to active, retired and honorably separated officers and enlisted military personnel, officer candidates in commissioning programs, adult children of USAA members, along with widows, widowers and former spouses of USAA members who have or have had a USAA auto or property insurance policy while married. Also, there is no annual fee, no penalty interest rate and no foreign transaction fee.

Cashback Rewards Plus American Express® Card

Apply Now
on USAA Savings Bank's secure website
Card Details
Intro Apr:
N/A

Ongoing Apr:
12.90% to 26.90% APR

Balance Transfer:
12.90%-26.90% APR

Annual Fee:
$0

Credit Needed:
Excellent-Good
Snapshot of Card Features
  • Earn 5% cash back on your first $3,000 in gas and military purchases annually on these categories combined.
  • Earn 2% cash back on your first $3,000 on supermarket purchases per year.
  • Unlimited 1% cash back on all other purchases.

Card Details +

Our Pick for Low Interest Rates: USAA Rate Advantage Platinum Visa

The Benefits

The USAA Rate Advantage Platinum Visa offers cardholders a variable APR as low as 7.90% (though it can be as high as 24.90% — it depends on creditworthiness), plus a 4% deployment APR for up to 12 months. 

The Drawbacks

Like USAA’s cash back card, it is available only to USAA members. Membership is available to active, retired and honorably separated officers and enlisted military personnel, officer candidates in commissioning programs, adult children of USAA members, and along with widows, widowers and former spouses of USAA members who have or have had a USAA auto or property insurance policy while married. This card does not offer a rewards program. 

USAA Rate Advantage Platinum Visa®

Apply Now
on USAA Savings Bank's secure website
Card Details
Intro Apr:
N/A

Ongoing Apr:
7.90% to 24.90% APR

Balance Transfer:
7.90%-24.90% APR

Annual Fee:
$0

Credit Needed:
Good-Fair
Snapshot of Card Features
  • Enjoy the lowest APR of any major bank in the U.S.
  • Same low rate for purchases, balance transfers and cash advances.
  • No foreign transaction fee.

Card Details +

Our Pick for The Good Life: USAA Military Affiliate Cards

If you enjoy traveling, entertainment, or shopping, then the USAA Military Affiliate Cards can help you get even more enjoyment. Or, if you like to donate to charity, then this could be the card for you.

The Benefits

The USAA Military Affiliate Cards offer two times the points for every dollar you spend on gas and grocery purchases. There is no cap on how much you can earn and no expiration on points. You also earn one point spent for every dollar on all other purchases. The cards have a sign up bonus of 2,500 points for making your first purchase. Cardholders can redeem points for cash, merchandise, gift cards, travel, or cruise tickets. These cards are ideal for traveling overseas because there are no foreign transaction fees and no blackout dates on air travel. You can also use points to make donations to military affiliate groups. The cards have a $0 annual fee and an APR of 11.90% to 26.90% Variable. There is balance transfer APR Intro: 0% for 12 months on balance transfers. Then APR for balance transfers is the same after the introductory period is over.

The Drawbacks

In order to be eligible for these cards, you have to be a USAA member. Also when redeeming points, the points transfer is not always 1:1.

USAA Military Affiliate Cards

Apply Now
on USAA Savings Bank's secure website
Card Details
Intro Apr:
N/A

Ongoing Apr:
11.90% to 26.90% Variable

Balance Transfer:
Intro: 0% for 12 months on balance transfers

Annual Fee:
$0

Credit Needed:
Excellent-Good-Fair
Snapshot of Card Features
  • Earn 2X points for every dollar on gas and grocery purchases all the time.
  • Earn one point for every dollar spent on your everyday purchases.
  • Get 2,500 bonus points with your first purchase.
  • Earn points without a cap or expiration.
  • Redeem your points for cash, merchandise, gift cards, travel or donate to your favorite military affiliate group. Redeem for cash on your mobile device

Card Details +

 

FAQs About Military Credit Cards

Will my command be notified if I’m late on a payment?

It’s possible if you have a card affiliated with the military’s Exchange Credit Program, but not with a general credit card issued through a civilian bank. Still, it’s important to read all the fine print that comes with any credit card before you apply.

You may also want to inquire if the card issuer reports to the credit bureaus. Having a late payment can affect your credit scores (payment history is the largest influencer of your scores) so it’s important you know who will be notified.

What is the interest rate for military credit cards?

It all depends on the card — For example, the purchase annual percentage rate (APR) for  USAA Cashback Rewards Plus American Express card has a variable APR of 12.90% to 26.90%.

Each credit card has their own interest rate structure, often influenced by creditworthiness, so you’ll need to read the terms and conditions with any card you’re considering to see what you may be charged if you don’t pay your balance in full.

However, it’s important to note that the SCRA prevents lenders from charging interest above 6% on credit obligations established before active duty or while on active duty.

When am I covered by the SCRA?

The Act covers military members starting from the day they receive their orders to report for duty. It’s important to keep these papers so you can use them to prove the date of service for any requests you make under the Act.

 

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

At publishing time, the Platinum card from American Express, the USAA Cashback Rewards Plus American Express, USAA Rate Advantage Platinum Visa, and USAA Military Affiliate cards are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).

This article last updated September 19th, 2017. 


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