workplace-rights

SCRA 6% Interest Rate Cap — Slash Pre-Service Debt Costs During Active Duty

Difficulty Easy Risk Low Applies To All Potential Savings Can save substantial interest on credit cards, loans, and mortgages incurred before service Last Verified 2026-04-03

SCRA 6% Interest Rate Cap — Slash Pre-Service Debt Costs During Active Duty

What Is It?

The Servicemembers Civil Relief Act caps interest on many pre-service obligations at 6% during qualifying military service.

What Most People Don’t Know

  • It applies only to qualifying obligations incurred before service.
  • The reduction can apply to more than credit cards.
  • Servicemembers usually need to notify the lender and provide orders.

Sources