topic Re: Must-Dos for credit before going Active Duty Military in General Credit Topics

Must-Dos for credit before going Active Duty Military

Tiggr — Fri, 21 Jun 2024 22:25:39 GMT

Military members, especially Active Duty military have an extremely different way if playing the credit game than anyone else, and there's loads of resources of what do to while you're AD. However, I'm trying to find advice or information about credit steps to take before going active duty.

One example is the C1 Venture X Card, which only gets the annual fee waived though the SCRA (Servicemembers Civil Relief Act) which is done when you join AD, but not during. Meaning that if you don't get this card before AD, you'll be stuck paying the annual fee.

Amex and Chase are known for waiving fees while active duty so I'm not sure if there's anything one would want to do with them specifically before going AD but I'm open to any suggestions.

Any prior or active servicemembers have any credit or credit card advice/actions they wish they knew/did before going Active duty?

Re: Must-Dos for credit before going Active Duty Military

rosco75 — Fri, 21 Jun 2024 22:56:46 GMT

I was not aware of cap1 waiving the annual fee for the venture X card. Im not sure what the SCRA has to do with a fee, its more to get you out of a contract without penalties. Can you please provide a source so I can look into that further?

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Fri, 21 Jun 2024 23:00:48 GMT

Here's four different reddit threads discussing this, I don't have anything from C1 talking about this but it seems to be the consensus is that you need it before going AD to have the AF waived.

https://www.reddit.com/r/MilitaryFinance/comments/r9655o/is_cap_venture_x_fee_waived_if_the_applicant/

https://www.reddit.com/r/MilitaryFinance/comments/t3chaj/scra_benefits_denied_capital_one/

https://www.reddit.com/r/MilitaryFinance/comments/16m7qyy/csra_and_venturex/

https://www.reddit.com/r/MilitaryFinance/comments/135xn0o/capital_one_venture_x_benefits/

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Fri, 21 Jun 2024 23:03:12 GMT

Here's the actual resource about SCRA from C1 but not specifically about a card.

"The SCRA provides benefits on accounts that were opened before the start of the Servicemember’s active duty period. This includes credit cards and lines of credit, auto loans, mortgage and home equity loans, and installment loans."

You can find this on the eligibility section on this page

https://www.capitalone.com/military/

Re: Must-Dos for credit before going Active Duty Military

FlaDude — Sat, 22 Jun 2024 01:45:28 GMT

This is really advice for anyone, but if you might be "out of pocket" for any length of time, make sure you set up automatic payments for at least the minimum balance on all accounts.

Re: Must-Dos for credit before going Active Duty Military

Horseshoez — Sat, 22 Jun 2024 02:11:09 GMT

@Tiggr, what is your current military status?

If you are in a delayed entry program, a reservist, or an officer candidate, you can join NFCU; I believe they are hands down the best option for folks in the military.

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Sat, 22 Jun 2024 02:21:05 GMT

I'm currently contracted AFROTC commissioning spring '26. I'll definitely look into NFCU eligibility, I'm an AU on a USAA cord so I'll definitely be getting with them eventually too.

Re: Must-Dos for credit before going Active Duty Military

Horseshoez — Sat, 22 Jun 2024 02:25:05 GMT

@Tiggr wrote:
I'm currently contracted AFROTC commissioning spring '26. I'll definitely look into NFCU eligibility, I'm an AU on a USAA cord so I'll definitely be getting with them eventually too.

My son did both USAA and NFCU while he was active and to this day he regrets getting involved with USAA. Contrast that with NFCU, a financial institution he absolutely swears by. I have both PenFed and NFCU, and for the most part, NFCU seems to be the better option of the two, but there are a few things PenFed definitely does better on.

Re: Must-Dos for credit before going Active Duty Military

FicoMike0 — Sat, 22 Jun 2024 02:31:16 GMT

I do know amex waives card fees for AD. Go for the platinum! Not sure if that goes for cobrand like airline and hotel, but worth checking.

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Sat, 22 Jun 2024 04:15:55 GMT

It does get waived for those cards too, the hilton is attractive

Re: Must-Dos for credit before going Active Duty Military

citymunky — Sun, 23 Jun 2024 15:15:41 GMT

@Tiggr wrote:
Military members, especially Active Duty military have an extremely different way if playing the credit game than anyone else, and there's loads of resources of what do to while you're AD. However, I'm trying to find advice or information about credit steps to take before going active duty.

One example is the C1 Venture X Card, which only gets the annual fee waived though the SCRA (Servicemembers Civil Relief Act) which is done when you join AD, but not during. Meaning that if you don't get this card before AD, you'll be stuck paying the annual fee.

Amex and Chase are known for waiving fees while active duty so I'm not sure if there's anything one would want to do with them specifically before going AD but I'm open to any suggestions.

Any prior or active servicemembers have any credit or credit card advice/actions they wish they knew/did before going Active duty?

Correct Cap1 will not waive any fee for AD military. At most they drop your APR to what is require by law once you being active if you had an account prior to being a servicemember under the SCRA. Chase and AMEX waive AF fees under the MLA, but they are not required to. They just do it show military appreciation.

Discover will drop your APR to 5.9% under the MLA as long as you are AD or under AD orders if you're a reservist.

Re: Must-Dos for credit before going Active Duty Military

citymunky — Sun, 23 Jun 2024 15:18:57 GMT

@Horseshoez wrote:
@Tiggr wrote:
I'm currently contracted AFROTC commissioning spring '26. I'll definitely look into NFCU eligibility, I'm an AU on a USAA cord so I'll definitely be getting with them eventually too.
My son did both USAA and NFCU while he was active and to this day he regrets getting involved with USAA. Contrast that with NFCU, a financial institution he absolutely swears by. I have both PenFed and NFCU, and for the most part, NFCU seems to be the better option of the two, but there are a few things PenFed definitely does better on.

IMO, USAA is GREAT for insurance. I have never have any problems with submitting claims, and receiving funds in a timely matter. Submit your claim online, on the app or over the phone and you'll have your funds almost immediately upon claims adjuster review.

As far as USAA banking, its they are ok. BUT one thing a said is if the goverment is shut down, NavyFCU and USAA will cover your paycheck as long as you had a directly deposit setup before hand. Both will also waive debit card ATM fees since they are aware that they don't have branches everywhere. However with you going over to the USAF, I suggest opening an your main account to what ever bank is localed on or near AFBs, and secondary account with NFCU/USAA for the benefits with products. In the Navy's case their is NFCUs are on/near every Naval Base. The AF has a mixed bag of options based out the four I been to.

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Mon, 24 Jun 2024 01:19:12 GMT

Yes C1 doesn't waive fees for Active Duty military but it does seem like the case is they will waive fees once you join. So you have to do it under SCRA instead of MLA in order to get this benefit. Overall it seems like a pretty rare and underground advantage not talked about much since there's a very limited amount of time to get it in one's life. Hopefully my score will soar high enough to get their venture x or another good high AF card before I go active duty.

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Mon, 24 Jun 2024 01:22:27 GMT

Thank you for the advice on banking and insurance, I'll be picking and choosing what I use from either USAA or NFCU in the future since they aren't mutually exclusive. I had no clue about the ATM fees and that's a great benefit.

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Thu, 24 Oct 2024 20:15:37 GMT

Update on this thread for anyone from the future, SCRA Servicemembers Credit Relief Act is your friend, and only applies to account opened BEFORE active duty. Common benefits include extremely low interest rates, fees waived on accounts, and it overall is just a better version of MLA because it can be combined with MLA benefits. Additionally, it is retroactive too so if you are down the line and you realize one of your old account would have been eligible, many (not sure if required) will backpay you the difference on interest and associated fees.

If I were to give specific advice, I would say try to open at least one good account BEFORE ACTIVE DUTY with each lender you'd like for the future so that account will essentulially be on easy mode for your entire military career.

Re: Must-Dos for credit before going Active Duty Military

KatzNDawgs — Fri, 25 Oct 2024 00:08:29 GMT

I was Army, stationed in Germany for 6 years. I had USAA, and still use it as my main banking hub - you get immediate available funds from pulling in from other linked bank accounts. But rates suck for savings, CCs ok. I still do have car, homeowners, and life insurance with them too. When I was overseas, the only physical bank that was on post was Service Credit Union - they still have a 4% HYSA currently and their auto loan rates 20 years ago were better than USAA's. I believe there is at least one on Ramstein AFB too. I never even heard of NFCU until after I was out, and wish I had got in earlier with them.

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Sat, 26 Oct 2024 01:34:14 GMT

@KatzNDawgs wrote:
I was Army, stationed in Germany for 6 years. I had USAA, and still use it as my main banking hub - you get immediate available funds from pulling in from other linked bank accounts. But rates suck for savings, CCs ok. I still do have car, homeowners, and life insurance with them too. When I was overseas, the only physical bank that was on post was Service Credit Union - they still have a 4% HYSA currently and their auto loan rates 20 years ago were better than USAA's. I believe there is at least one on Ramstein AFB too. I never even heard of NFCU until after I was out, and wish I had got in earlier with them.

I am so glad this forum convinced me to get with NFCU, looking to maybe get a card with them soon but I will always love having access to the other products they have.

Re: Must-Dos for credit before going Active Duty Military

USMCOne — Sun, 27 Oct 2024 12:30:38 GMT

As a Marine Retiree I can tell you this and I now am a contractor and others have experienced the same Amex never has revisited my account. Amex Plat, Amex Gold, Amex Delta reserve, Amex BCP, Amex Brilliant never charged a annual fee while in the Marines and have not since I got out. One day they might but been out for some time. Nearly all the contractors I work with are prior military of some sort also same tale.

Only Chase line I have is Chase Sapphire Preferred and no annual fee on that one.

Stay away from USAA. They have had a change of the guard at the top and its like every other rip off joint. Navy Fed has a very strong presence with all branches. Talk to most Airmen in USAF even they have it.

I believe Amex just puts in some future far off date for Annual fees as they do not know if you will reenlist. Easier to deal with it that way then to have your waviers expire and have a service member report them to the news on how your being screwed. Then all in all probably not a ton of them to deal with.

Also if your a younger person do not expect because your military that you will obtain their full line up. Your credit worthiness still applies. The same rule like 5/24 with Chase still applies.

Re: Must-Dos for credit before going Active Duty Military

Tiggr — Sun, 27 Oct 2024 14:26:50 GMT

@USMCOne wrote:
As a Marine Retiree I can tell you this and I now am a contractor and others have experienced the same Amex never has revisited my account. Amex Plat, Amex Gold, Amex Delta reserve, Amex BCP, Amex Brilliant never charged a annual fee while in the Marines and have not since I got out. One day they might but been out for some time. Nearly all the contractors I work with are prior military of some sort also same tale.

Only Chase line I have is Chase Sapphire Preferred and no annual fee on that one.

Stay away from USAA. They have had a change of the guard at the top and its like every other rip off joint. Navy Fed has a very strong presence with all branches. Talk to most Airmen in USAF even they have it.

I believe Amex just puts in some future far off date for Annual fees as they do not know if you will reenlist. Easier to deal with it that way then to have your waviers expire and have a service member report them to the news on how your being screwed. Then all in all probably not a ton of them to deal with.

Also if your a younger person do not expect because your military that you will obtain their full line up. Your credit worthiness still applies. The same rule like 5/24 with Chase still applies.

I've heard similar things about amex not updating after retiring, and I hope that's the case 20+ years from now too. I'm confident I could obtain their full line up honestly, aside from 5/24 nothing is really holding me back except for the fact I'm not AD yet and don't want the annual fees yet.

Re: Must-Dos for credit before going Active Duty Military

USMCOne — Mon, 28 Oct 2024 10:37:33 GMT

Additionally most military members travel alot and sadly US Armed Forces issues a Government Credit Card. There are rules governing by law (JTR Joint Travel Regulations) on accumulating points on government purchased travel. Rules apply to government workers as well. Contractors working for the government though are different (thankfully).

You'll find yourself going TDY/TAD for various things and getting per diem as well. Allows you to rack up the points unless you desire to save your per diem money.

I would also advise a credit card like Bilt so you can get rent points.