The best rewards credit cards are loaded with benefits, like statement credits, airport lounge access and purchase protection. Cardholders often have to pay steep annual fees for these choice cards. But not if you're an active-duty member of the U.S. military.
Many card issuers waive annual fees and cap other charges for active-duty service members. , thanks to the Servicemembers Civil Relief Act(SCRA) and theMilitary Lending Act(MLA), . This means those in active-duty military service can earn a welcome bonus and take advantage of valuable ongoing benefits without having to consider the card's annual fee.
Below, CNBC Select details how to take advantage of this benefit and why the American Express Platinum Card® is one of the best cards for active-duty service members.
How the SCRA and MLA apply to credit cards
The SCRA and MLA are similar laws, but have a few key differences. The biggest one is that the SCRA applies to specific financial obligations servicemembers incur before starting active-duty service. The MLA, on the other hand, applies to certain financial commitments you make while on active duty.
If you open a credit card while on active duty you may benefit from the MLA, and credit cards you open before active duty can be affected by the SCRA.
If you get an Amex Platinum card five years into your active service and request SCRA relief, they're probably going to deny you, says Richard Kerr, vice president of travel at Bilt Rewards and a Navy veteran. The difference in how these laws work has just caused a lot of confusion, Kerr said. "You should have requested relief from the annual fee under the Military Lending Act, instead."
Many credit card issuers will waive fees and cap interest rates for servicemembers on active duty, including active duty reservists. But this benefit isn't automatic: You'll need to contact your card issuer and request the fee waiver.
If you have a credit card that charges an annual fee, you even may qualify for reimbursem*nt of the fees you paid while on active duty. While this isn't guaranteed or standard practice, there are "situations where issuers have gone above and beyond," Kerr says. "'I've physically seen checks with five years worth of annual fees sent back to the service member."
Why the Amex Platinum is such a valuable card for active-duty service members
The American Express Platinum Card is an excellent travel rewards card, but it has a $695 annual fee (see rates and fees), one of the most expensive annual fees on the market. But if you're a service member who qualifies for a fee waiver, opening the Amex Platinum is easily worth it.
The Platinum Card® from American Express
On the American Express secure site
Rewards
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases
Welcome bonus
Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
Annual fee
$695
Intro APR
None
Regular APR
See Pay Over Time APR
Balance transfer fee
N/A
Foreign transaction fee
None
Credit Needed
Excellent/Good
See rates and fees, terms apply.
Read our The Platinum Card® from American Express review.
The Amex Platinum is loaded with up to $1,595 in statement credits, and even if you only take advantage of half of those, you're making a nice profit. It also earns Amex Membership Rewards points, which are some of the most useful and valuable travel rewards you can earn.
Here is a list of the perks and the welcome bonus you can earn with the Amex Platinum card:
Amex Platinum benefits
| Benefit | Potential value | Details of the benefit | Is this a new benefit? |
|---|---|---|---|
| Welcome offer: Earn 80,000 Membership Rewards points after you spend $8,000 on purchases on your new card in your first six months of card membership. | $1,600 (Points are valued at 2 cents per point. This assumes you earn the full welcome bonus plus an additional 8,000 in points when you charge $8,000 in order to hit the spend requirement, assuming an earning rate of 1 point per dollar) | As you spend on the card, you will earn the following:5X per $1 booked directly with airlines or Amex Travel, up to $500,000 per year; 5X per $1 on prepaid hotels booked on AmexTravel.com; 1x per $1 on other purchases | Yes, however, this welcome offer is reduced. In the past, the welcome offer was 100,000 Membership Rewards points after spending $6,000 in the first three months. |
| Up to $200 Hotel credit | $200 | Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card. The Hotel Collection requires a minimum two-night stay. | Yes |
| Up to $200 Airline fee credit | $200 | Get $200 each year in incidental credits (i.e. checked bag fees, in-flight drinks, etc.) Must select one airline and charge to Amex Plat. | No |
| Up to $300 Equinox credit | $300 | Get up to $300 back each calendar year on an Equinox+ subscription, or any Equinox club memberships when you pay with your Platinum Card. Enrollment required. Visit https://platinum.equinox.com/ to enroll. | Yes |
| $155 Walmart+ credit | $155 | Cover the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax. Plus Ups are excluded. Subject to auto-renewal. | Yes |
| Airport lounge access | Variable | You will receive access to the American Express Global Lounge Collection, which includes: Priority Pass membership, Delta Sky Club access and Centurion lounges. | No |
| $200 Uber credit | $200 | You will get $15 in Uber Cash per month (bonus $20 in December) for Uber rides or Uber Eats orders. Benefit renews annually. Uber Cash and Uber VIP status is available to Basic Card Member only. | No |
| Up to $240 digital entertainment credit | $240 | Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peaco*ck, SiriusXM, and The Wall Street Journal. Enrollment required. | Yes |
| Up to $100 TSA PreCheck®/Global Entry credit | $100 | Receive either a $100 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck® (through a TSA official enrollment provider) application fee, when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost. | No |
| $189 CLEAR® Plus credit | $100 | You will receive up to $189 per year in statement credit to apply for CLEAR® Plus, a biometric security program located at airports and stadiums across the U.S. (subject to auto-renewal) We only value this at $100 because members of select airline loyalty programs can apply for CLEAR® at a discounted rate. | Yes |
| $100 Saks Fifth Avenue credit | $100 | You will receive $50 semiannually to use at either Saks Fifth Avenue or saks.com. Enrollment required. | No |
| Complimentary Hilton Honors Gold status | Variable | You will receive complimentary Gold status benefits when you book directly at Hilton properties. Gold status includes: daily food/beverage credit, upgrades when available, fifth night free when using points and free Wi-Fi. | No |
| Complimentary Marriott Bonvoy Gold Elite status | Variable | You will receive complimentary Gold Elite status benefits when you book directly at Marriott properties. Gold status includes: upgrades when available, late checkout and enhanced Wi-Fi. | No |
| Terms apply. |
Cardmembers also receive elite status with Avis, Hertz and National. And the card has a wide range of built-in travel insurance and purchase protections, including:
- Trip delay insurance
- Trip cancellation/interruption insurance
- Return protection
- Purchase protection
- Extended Warranty
- Cell phone protection
- Baggage insurance
- Terms apply
Find the best credit card for you by reviewing offers in ourcredit card marketplaceor get personalized offers viaCardMatch™.
Other cards to consider as an active-duty service member
Regardless of what credit cards you have or want, it's a good practice to ask the card issuer about fee waivers or other benefits available for members of the U.S. military. Although other issuers will waive credit card annual fees for active-duty servicemembers, Amex is one of the most accommodating according to Kerr. In his experience, "as long as you request relief underneath the right piece of legislation it's always been no questions asked."
Depending on your spending habits and travel preferences, several credit cards can be as valuable as the Amex Platinum.
The American Express® Gold Card is great for foodies, it earns 4X Amex points at restaurants worldwide (on up to $50,000 in purchases per calendar year, then 1X) and U.S. supermarkets (on up to $25,000 in purchases per calendar year, then 1X). Cardmembers also receive up to $120 in dining credit annually ($10 in monthly statement credits) when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys (enrollment required) and up to $120 in Uber Cash annually (up to $10 a month for Uber Eats orders or Uber rides in the U.S.. You must have downloaded the latest version of the Uber App and your eligible American Express Gold Card must be a method of payment in your Uber account. The Amex Benefit may only be used in the United States). Terms apply.
For anyone looking for a luxury hotel stay, the Hilton Honors American Express Aspire Card and Marriott Bonvoy Brilliant® American Express® Card are the premium cobranded hotel credit cards for those chains. They both come with annual free night certificates, elite status and generous statement credit benefits.
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Bottom line
Active-duty military members can have the annual fees waived on certain credit cards. This is a particularly useful benefit to take advantage of with luxury credit cards, which tend to have the best perks but come with high annual fees.
For example, the Amex Platinum card has a $695 annual fee (see rates and fees), but this is offset by the ability to earn up to $1,595 in statement credits each year. Active-duty service members can have the annual fee waived, which makes the Amex Platinum an exceptionally valuable card to consider.
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For rates and fees of The Platinum Card® from American Express, click here.
For rates and fees of the Business Platinum Card® from American Express, click here.
*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
