I’m in the military and just got my first travel rewards credit card (Chase Sapphire). I plan to apply my SCRA benefits to it, but was also wondering if it will lower my credit card limit significantly? Does anyone have any experience in this?
SCRA Lower Credit Card Limit?
byu/Time_Ad8224 inMilitaryFinance
Posted by Time_Ad8224
7 Comments
You can’t use SCRA on debt acquired after joining, only on debt acquired before you joined
SCRA doesn’t apply to debts incurred after entering service.
Do not accumulate debt on a rewards card – the rate is over 20% and will bury you. Scra doesn’t apply to debt after you join scra won’t change that 20-30% interest. Pay off anything you put on it immediately. If you can’t pay it off before the end of the monthly period, do not put it on this card
If you got the card while on AD (recently) they will apply MLA benefits automatically and the rate will be 4%..and no they won’t change your credit limit because of that.
As others have said, SCRA is only applicable to debts incurred prior to joining the military. Some companies will reduce the APR for military, but that’s out of the goodness of their hearts.
To answer your actual question, the SCRA has no effect on your credit limit. If you have a good credit score and use the card responsibly, it’s likely the company will increase your credit limit at some point. If your credit score goes down in the future, the company might decrease your credit limit (with written notice first, but it can be done without your express agreement).
You cannot apply SCRA to debt accrued while AD.
It’s actually MLA you’re talking about. They’ll reduce your interest rate to 4% and waive/reverse the fee
If you have a spouse, they can request this benefit by submitting your active duty forms and marriage certificate