Does SCRA Apply to Spouses Credit Cards and Military Benefits

SCRA applies to spouses' credit cards in certain situations. The Servicemembers Civil Relief Act (SCRA) can provide relief to spouses of military members who are experiencing financial hardship due to their partner's military service.

If a military member's credit card debt is in default, SCRA may not apply directly to the spouse's credit card. However, if the spouse is also a dependent, they may be entitled to some form of relief.

SCRA does not directly apply to spouses' credit cards, but it can impact their access to military benefits. Military members may be eligible for benefits like reduced interest rates on credit cards, but these benefits do not automatically extend to their spouses.

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To qualify for SCRA benefits, you typically need to be actively enrolled in a branch of the U.S. Military or be a spouse of an active duty service member.

The law requires banks to offer SCRA benefits to service members who are on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard.

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Additionally, National Guard members who are called to active duty for more than 30 consecutive days for service funded by federal money are also eligible.

Commissioned officers of the U.S. Public Health Service (USPHS) or National Oceanic and Atmospheric Administration (NOAA) who have been called into active service qualify for SCRA benefits.

Service members who are absent from active duty because of sickness, wounds, or other qualifying reasons may also be eligible.

A spouse of an active duty service member can qualify for SCRA benefits as long as they share a joint line of credit with that person.

Some banks, like Capital One, extend SCRA benefits to National Guard members called for active duty regardless of whether the service is state or federally funded.

Here are the minimum qualifications for SCRA benefits:

A court may grant a creditor relief from the limitations of this section if, in the opinion of the court, the ability of the servicemember to pay interest upon the obligation or liability at a rate in excess of 6 percent per year is not materially affected by reason of the servicemember’s military service.

Debts that were incurred prior to military service must have their interest rate reduced to 6%, from the date of entering the military, to one year after leaving the military.

This applies to debts held by the service member, or jointly held by the service member and his or her spouse.

If you have debt from before joining the military, be sure to let every single creditor know, in writing, that you’re now on active duty.

A written agreement or waiver is valid if it is signed during or after the period of military service.

Signing the waiver for SCRA rights before entering a period of military service will make it invalid.

Barclays has a strict policy regarding SCRA benefits, only offering them to cardholders who opened their accounts prior to active duty. This means that if you opened an account after enlisting, you won't be eligible for SCRA benefits.

Barclays offers 0% APR and no annual fees on credit cards during active duty for those who opened their accounts before enlisting. However, those who started active duty and are now looking at a Barclays card will be responsible for any fees and standard interest rates.

Citi is another bank that offers generous SCRA benefits, but only to cardholders who opened their accounts prior to active military service. They offer a 0% APR during active duty and waive all fees on these accounts, including annual fees.

Citi offers generous benefits for SCRA-eligible cardholders as long as they opened their accounts prior to active military service. They are very strict about this.

For those accounts opened prior to active-duty service, Citi offers a 0% APR during the course of their active duty. They will also waive all fees on these accounts (including annual fees). Outside of active duty, standard variable APRs and rates apply.

You can contact Citi's military specialists 24/7 to discuss benefits by calling 877-804-1082 in the U.S. or 605-335-2222 for overseas collect calls.

Barclays has a strict policy when it comes to SCRA benefits, and it's essential to know the details to avoid any surprises.

Barclays only offers SCRA benefits to cardholders who opened their accounts prior to active duty.

If you opened an account before active duty, Barclays offers 0% APR and no annual fees on credit cards during active duty, which is a significant perk.

However, if you opened a Barclays account after starting active duty, you won't be considered SCRA eligible, and you'll be responsible for any fees and standard interest rates that apply with the card.

Chase offers valuable benefits to service members, including waiving all fees, including annual fees, if you open your account before going on active duty. They also lower your credit card interest rate to 4% APR.

If you have a mortgage through Chase, they offer foreclosure protection, which applies regardless of when the mortgage began and protects you from foreclosure even if you're significantly behind on payments. This protection lasts for 1 year after your active-duty service ends.

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