01 · Federal SCRA protection
Credit cards & borrowing
Explore possible interest relief on credit cards and loans opened before military service.
4 protections in this areaWhat may apply
Protections worth checking
Possible 6% cap on eligible debt opened before service
Covered interest above the cap is forgiven, not deferred
Protection from negative treatment solely for using certain SCRA rights
Possible court help for some debts or contracts from before service
Orders First editorial
Trump called for 10%. Servicemembers can get 6%.
Washington is arguing about whether banks should cut rates. Federal law already gives military borrowers something better.
Read the editorialFederal protections, one by one
The full records for this topic.
Open any protection to see what it may do, when it may fit, what to do next, and the official source.
01Credit cards, loans, and financed property
Interest relief for credit cards and other pre-service debt
Check eligibility
Credit cards, loans, and financed property
Interest relief for credit cards and other pre-service debt
For qualifying debt taken on before service, interest and covered fees above 6% are forgiven, not postponed. Payments must be lowered to reflect that relief. The cap generally lasts through service, and for qualifying mortgages it lasts through service plus one year.
The member, or the member and spouse together, took on the debt before qualifying military service and the interest rate is above 6%.
Send written notice and a copy of orders or other proof of service no later than 180 days after leaving service. A creditor may also confirm service through the Defense Manpower Data Center.
Check eligibility → estimate → prepare the request
02Credit cards, loans, and financed property
Protection from unfair treatment for using SCRA rights
Learn what applies
Credit cards, loans, and financed property
Protection from unfair treatment for using SCRA rights
A creditor or insurer generally cannot deny or cancel credit or insurance, change the terms, or make a negative credit report solely because a servicemember asked for or received certain SCRA protections. Regular payment duties still apply.
The member asks for or receives certain SCRA protection involving a delay, pause, or postponed payment.
No advance request is needed. Save statements and messages, because they may help if you report a suspected violation.
Learn what applies → gather documents → contact an official help source
06Credit cards, loans, and financed property
Asking a court to pause certain pre-service debts or taxes
Review the requirements
Credit cards, loans, and financed property
Asking a court to pause certain pre-service debts or taxes
A member may ask a court to set a payment schedule or pause collection when military service seriously affects the ability to pay a debt, tax, or contract.
The member applies during service or within 180 days after leaving service. The debt or contract began before service, or the tax became due before or during service.
Ask a court for this protection.
Review the requirements → get help
The refund estimate is not built for court matters or time-sensitive threats. If someone is trying to foreclose, evict, repossess, garnish wages, or sell property—or you have a court deadline—start with DOJ help for servicemembers.
07Credit cards, loans, and financed property
Contract penalties while a court case is paused
Check the dates
Credit cards, loans, and financed property
Contract penalties while a court case is paused
A covered contract penalty does not keep growing while the court case is paused. A court may also reduce or remove a fine or penalty when military service seriously affected the member's ability to perform the contract.
A court has paused the contract case, or a contract penalty arose during service because service interfered with performance.
You may need to ask a court.
Check the dates → get help
The refund estimate is not built for court matters or time-sensitive threats. If someone is trying to foreclose, evict, repossess, garnish wages, or sell property—or you have a court deadline—start with DOJ help for servicemembers.
Where this comes from
Federal protections stay separate from additional institution benefits.
We base federal summaries on current federal law and official agency guidance. Additional benefits offered by a bank are labeled separately and do not change the federal protections.