What It Is

The SCRA is a federal law that provides a range of financial and legal protections to active-duty service members, as well as activated Guard and Reserve members.

Why It Matters

This law can save you thousands of dollars. Its most famous benefit is the ability to cap interest rates on any pre-service loans (credit cards, auto loans, mortgages) at 6% while you are on active duty. It also provides protections against default judgments, foreclosures, and allows you to terminate leases due to military orders.

Who Qualifies & How It Works

• All active-duty service members, including Guard and Reserve members called to active duty, and sometimes their families.
• Interest Rate Cap: You must request the 6% cap from your lender in writing and provide a copy of your orders.
• Lease Termination: You can legally break a residential or auto lease without penalty if you receive PCS orders.
• Protection from Default Judgments: Prevents a court from entering a default judgment against you if your military service prevents you from appearing in court.
• The protections generally begin on the date you enter active duty and end 30-90 days after your date of separation.

Actionable Steps

What It Is

The MLA is a federal law that protects military members and their families from predatory lending practices.

Why It Matters

It shields you from excessively high-interest rates on many types of consumer loans. The MLA caps the Military Annual Percentage Rate (MAPR) at 36% and provides other significant rights.

Who Qualifies & How It Works

• Active-duty service members and their covered dependents.
• 36% MAPR Cap: The MAPR includes not just interest, but also fees, credit insurance premiums, and other costs. This cap applies to payday loans, vehicle title loans, tax refund anticipation loans, and most credit cards.
• No Mandatory Allotments: A creditor cannot require you to create a voluntary military allotment to repay the loan.
• No Prepayment Penalty: You can pay back the loan early without any penalty.
• Applies to loans taken *while* you are in the military, unlike the SCRA's pre-service focus.

Actionable Steps

What It Is

Several financial institutions specialize in serving the military community, offering products and services tailored to the military lifestyle.

Why It Matters

These institutions understand military pay, deployments, and PCS moves. They often offer benefits like early direct deposit of military pay, fee waivers, and excellent customer service for members stationed worldwide.

Who Qualifies & How It Works

• Eligibility varies, but generally includes service members, veterans, and their families. Many are open to all.
• USAA and Navy Federal Credit Union (NFCU) are the two largest and most well-known institutions focused on the military.
• Benefits can include ATM fee rebates, competitive auto loan and mortgage rates, and insurance products.
• They often have physical branches near major military installations around the world.

Actionable Steps