Military Members Granted Relief Act Waivers on Annual Fees and Imposition of 6% Interest Rates (SCRA)

Military Members Granted Relief Act Waivers on Annual Fees and Imposition of 6% Interest Rates (SCRA)

In the realm of financial relief and travel rewards, two distinct paths emerge for service members. On one hand, the Servicemembers Civil Relief Act (SCRA) offers a host of protections to alleviate financial distress for those on active duty. On the other, a variety of travel credit cards can help maximise points and miles for those seeking to travel in style.

The SCRA: A Financial Lifeline for Service Members

Initially published in 1940, the Servicemembers Civil Relief Act (SCRA) was designed to provide relief for active-duty military personnel, offering protections such as capped interest rates, a moratorium on foreclosures, and protection against default judgments in civil cases.

To qualify for SCRA benefits, you must be an active duty member of the U.S. military, including the Army, Navy, Air Force, Marine Corps, Coast Guard, or Reserve and National Guard members called to active duty for more than 30 consecutive days. Additionally, active duty commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration are covered. Your active duty status must be verifiable through official military records.

Key eligibility criteria include current active duty military status during the time protections are sought, membership in one of the covered military branches or service components, and verification of service, usually through military documentation or verification services. Dependents may receive certain protections only if they obtain a court order demonstrating their eligibility.

To request SCRA benefits, one must contact their bank and usually complete the process online, by fax, mail, or phone.

Maximising Travel Rewards as a Service Member

For those seeking to maximise travel rewards, general-use travel cards, which earn flexible point currencies, are often the best options. Popular flexible point currencies include American Express Membership Rewards, Bilt Rewards, Capital One Miles, Chase Ultimate Rewards, Citi ThankYou Rewards, and Marriott Bonvoy.

One such card is the Hilton Honors American Express Aspire Card, which offers 175,000 Hilton Honors Bonus Points after spending $6,000 in purchases within the first 6 months of Card Membership. The card charges a $550 annual fee, but provides more than $750 in statement credits each year, including up to $400 at Hilton resorts, up to $209 CLEAR Plus credit, and up to $200 flight credit. The card also offers automatic Hilton Diamond status, an annual free night, and a travel and resort credit.

However, it's important to note that the Marriott Bonvoy Brilliant American Express Card, despite offering a premium card for Marriott fans with an annual statement credit and Free Night Award, plus a fast track to Marriott elite status, has a lower elite status compared to Marriott's highest. Its statement credit is more limited, offering just up to $300 per year for dining purchases.

In contrast, cards like the Platinum Card from American Express and the Chase Sapphire Reserve are two of the best cards for general travel, offering high-end perks and generous statement credits.

For service members eligible for SCRA benefits, the best cards often provide benefits such as annual credits, top-tier elite status, lounge access, and more.

In summary, qualification for SCRA benefits requires active duty military service status verified by official records and membership in eligible military branches or components. Some benefits require proper documentation or court orders to exercise rights under SCRA. On the other hand, maximising travel rewards as a service member can be achieved through the use of general-use travel cards earning flexible point currencies, with popular options including the Hilton Honors American Express Aspire Card and the Platinum Card from American Express.

1. The Servicemembers Civil Relief Act (SCRA) is a financial lifeline for active-duty military personnel, providing protections such as interest rate caps, foreclosure moratoriums, and protection against default judgments.
2. To qualify for SCRA benefits, one must be an active-duty member of the U.S. military, including the Army, Navy, Air Force, Marine Corps, Coast Guard, Reserve and National Guard members, wounded warriors, or service members who are activated for more than 30 consecutive days.
3. In addition to financial relief, service members can leverage travel credit cards to maximise points and miles for travel rewards, with cards like the Hilton Honors American Express Aspire Card offering benefits such as annual credits, top-tier elite status, lounge access, and more.
4. For those seeking flexibility in travel rewards, general-use travel cards, such as those that earn American Express Membership Rewards, Bilt Rewards, Capital One Miles, Chase Ultimate Rewards, Citi ThankYou Rewards, and Marriott Bonvoy points, are often the best options.
5. Education and self-development resources can help service members make informed decisions about personal finance and investing, enabling them to manage their finances effectively during active duty and beyond.
6. Technology plays a crucial role in today's business landscape, with digital tools available for service members to streamline financial management, manage their investments, and stay up-to-date on news and education.
7. The landscape of entertainment encompasses a wide range of experiences, from music and sports to lifestyle and education-focused events, offering service members opportunities to unwind, connect with others, and broaden their horizons while on active duty or during their post-military years.

Read also: