Navigating the world of credit cards can be overwhelming, especially when you're serving in the military. Understanding the benefits and perks specifically tailored for military personnel is crucial to maximizing your rewards and minimizing fees. This guide will break down the best credit card options for military members in 2024, highlighting their unique features and how they can benefit your financial well-being.
| Card Name | Key Benefits | Annual Fee |
|---|---|---|
| Chase Sapphire Preferred® Card | Excellent travel rewards, 5x points on travel purchased through Chase Ultimate Rewards®, 3x points on dining, online grocery purchases, and select streaming services, 2x on all other travel purchases. | $95 |
| Chase Sapphire Reserve® Card | Premium travel rewards, $300 annual travel credit, 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually, 3x points on other travel and dining, Priority Pass Select membership. | $550 |
| American Express Platinum Card® | Extensive travel benefits, $200 hotel credit, $200 airline fee credit, access to Centurion Lounges, 5x points on flights booked directly with airlines or with American Express Travel, 5x points on prepaid hotels booked on amextravel.com. | $695 |
| American Express Gold Card® | High rewards on dining and groceries, 4x points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1x), 4x points at restaurants worldwide, 3x points on flights booked directly with airlines or on amextravel.com. | $250 |
| Capital One Venture X Rewards Credit Card | Premium travel perks, $300 annual travel credit, 10,000 bonus miles every account anniversary, access to Capital One Lounges and Priority Pass lounges, 2x miles on all other purchases, 5x miles on flights booked through Capital One Travel, 10x miles on hotels and rental cars booked through Capital One Travel. | $395 |
| Capital One Venture Rewards Credit Card | Simple travel rewards, 2x miles on every purchase, no foreign transaction fees. | $95 |
| Citi Premier® Card | Versatile rewards program, 3x points on restaurants, supermarkets, gas stations, air travel, and hotels. | $95 |
| Navy Federal Credit Union Flagship Rewards Credit Card | Solid rewards and benefits for Navy Federal members, 3x points on travel and dining, 2x points on all other purchases, up to $100 statement credit for Global Entry or TSA Pre✓®. | $49 |
| Navy Federal Credit Union More Rewards American Express® Credit Card | High rewards in everyday spending categories for Navy Federal members, 3x points at restaurants and supermarkets, 3x points on gas and transit, 1x point on all other purchases. | $0 |
| PenFed Pathfinder® Rewards American Express® Card | Excellent travel benefits for PenFed members, $100 annual airline incidental statement credit, Global Entry or TSA Pre✓® fee credit, 4x points on travel purchases, 1.5 points on all other purchases. | $95 (waived for Honors Advantage members) |
| USAA Rate Advantage Credit Card | Low APR option, ideal for carrying a balance. | $0 |
| USAA Cashback Rewards Plus American Express® Card | High cashback in specific categories, 5% cashback on gas and military base purchases, 2% cashback at supermarkets and restaurants. | $0 |
Detailed Explanations
Chase Sapphire Preferred® Card: This card is a great option for those starting their travel rewards journey. It offers a solid return on travel and dining purchases and has a reasonable annual fee. The points earned can be redeemed for travel, cash back, or gift cards, or transferred to partner airlines and hotels for potentially even greater value. The welcome bonus is also typically quite generous, making it a worthwhile consideration.
Chase Sapphire Reserve® Card: The Chase Sapphire Reserve® card is a premium travel credit card with many perks. The $300 annual travel credit effectively lowers the annual fee, and the Priority Pass Select membership provides access to airport lounges worldwide. The high earning rates on travel and dining, combined with the ability to transfer points to travel partners, make this card a top choice for frequent travelers. The card's metal design also adds a touch of luxury.
American Express Platinum Card®: This card is renowned for its extensive travel benefits, including access to Centurion Lounges and credits towards hotels and airline fees. The 5x points earning rate on flights and prepaid hotels booked through American Express Travel makes it a valuable option for booking travel directly. However, it's important to carefully consider whether the benefits outweigh the high annual fee.
American Express Gold Card®: This card is focused on rewards for everyday spending, particularly on dining and groceries. The 4x points earning rate at U.S. supermarkets and restaurants makes it a valuable choice for those who spend a significant amount in these categories. The rose gold version of the card is also a popular aesthetic choice.
Capital One Venture X Rewards Credit Card: This card offers a simplified approach to travel rewards, with a flat 2x miles on all purchases and enhanced earning rates on travel booked through Capital One Travel. The annual travel credit and access to Capital One Lounges and Priority Pass lounges add significant value. The annual renewal bonus of 10,000 miles is a nice perk.
Capital One Venture Rewards Credit Card: This card is a good option for those who want a simple and straightforward travel rewards card. The flat 2x miles earning rate on all purchases makes it easy to accumulate rewards, and there are no foreign transaction fees. It's a solid choice for beginners in the travel rewards space.
Citi Premier® Card: This card offers a versatile rewards program with bonus points on a wide range of spending categories, including restaurants, supermarkets, gas stations, air travel, and hotels. This makes it a good option for those who want a card that rewards them for everyday spending. The points can be redeemed for travel, gift cards, or statement credits.
Navy Federal Credit Union Flagship Rewards Credit Card: This card is designed for members of Navy Federal Credit Union and offers solid rewards on travel and dining purchases. The statement credit for Global Entry or TSA Pre✓® is a valuable perk for frequent travelers. Membership in Navy Federal Credit Union is required to apply for this card.
Navy Federal Credit Union More Rewards American Express® Credit Card: This card offers high rewards in everyday spending categories, such as restaurants, supermarkets, gas, and transit. It's a great option for Navy Federal members who want to maximize their rewards on everyday purchases. The lack of an annual fee makes it an attractive option.
PenFed Pathfinder® Rewards American Express® Card: This card offers excellent travel benefits for PenFed members, including an annual airline incidental statement credit and a credit for Global Entry or TSA Pre✓®. The high earning rate on travel purchases makes it a valuable option for frequent travelers. The annual fee is waived for Honors Advantage members.
USAA Rate Advantage Credit Card: This card is designed for those who need a low APR and want to carry a balance. It offers a competitive interest rate, which can help save money on interest charges. It's important to note that this card does not offer significant rewards.
USAA Cashback Rewards Plus American Express® Card: This card offers high cashback in specific categories, such as gas and military base purchases. It's a great option for USAA members who frequently spend in these categories. The cashback rewards can help offset everyday expenses.
Frequently Asked Questions
What is the Servicemembers Civil Relief Act (SCRA)? The SCRA provides financial protections to servicemembers, including capping interest rates on debts incurred before active duty at 6%. It also can provide protection from eviction and foreclosure.
What is the Military Lending Act (MLA)? The MLA protects servicemembers from predatory lending practices by capping the Military Annual Percentage Rate (MAPR) at 36% and requiring certain disclosures.
Are annual fees waived for military members? Some credit card issuers, such as American Express and Chase, waive annual fees for active-duty military members under the SCRA. Contact the issuer directly to confirm eligibility.
Can I get a credit card while deployed? Yes, you can apply for a credit card while deployed. Ensure you have access to reliable internet and necessary documentation.
How do I apply for a military credit card? The application process is similar to applying for any other credit card. You'll typically need to provide your Social Security number, income information, and military status.
What should I consider when choosing a credit card as a military member? Consider your spending habits, travel needs, and whether you qualify for annual fee waivers. Also, understand the SCRA and MLA protections.
Are there any credit cards specifically designed for military members? While some cards are heavily marketed towards military personnel (like those from USAA and Navy Federal), the best card depends on your individual spending habits and financial goals.
How can I improve my credit score while serving in the military? Pay your bills on time, keep your credit utilization low, and avoid opening too many new accounts at once. Regularly check your credit report for errors.
What happens to my credit card debt if I'm deployed? The SCRA can provide protections, such as capping interest rates and preventing collection actions. Notify your credit card issuer of your deployment status.
Should I close my credit cards before deploying? Generally, no. Keeping your credit cards open can help maintain your credit score. Just be sure to manage them responsibly while deployed.
Conclusion
Choosing the best credit card for military personnel depends heavily on individual spending habits, travel preferences, and eligibility for specific benefits like annual fee waivers. Carefully weigh the rewards programs, annual fees, and other perks to find the card that best suits your needs and maximizes your financial advantages while serving.