SCRA 6% Interest Rate Cap Calculator

What the SCRA actually covers

The Servicemembers Civil Relief Act caps interest at 6% per year on debt you took on before you entered active duty, including credit cards, auto loans, and mortgages. It is one of the most underused military financial benefits, mainly because it is not automatic and most servicemembers never ask for it.

The catch is scope: only the balance you carried in is covered. A card you kept using for everyday purchases after your active-duty start date will have two effective rates on it, the capped rate on the old balance and your normal APR on anything new, unless your issuer voluntarily extends the cap further, which some do.

How to actually request it

The cap does not apply itself. Per the Department of Justice, here is the process:

1. Send your creditor written notice that you are requesting the SCRA interest rate benefit. Most issuers accept this through their normal written channels, including secure messaging.
2. Include a copy of your military orders, or another document showing your service, with the notice.
3. Send this no later than 180 days after your active-duty service ends. You do not have to wait until you separate; you can request it as soon as you are on active duty.
4. Once received, your creditor must forgive interest above 6% retroactively back to the date you were eligible, refund any excess already paid, and cannot accelerate your principal payments to make up the difference.

Do this separately for every card issuer; there is no single request that covers every account.

Worked example

A $10,000 balance carried into active duty at 22% APR:

• At 22%, that balance costs roughly $2,200 a year in interest.
• Capped at 6%, the same balance costs about $600 a year.
• That is about $1,600 a year, or roughly $133 a month, back in your pocket for as long as you are on qualifying active duty.

Not the same as the Military Lending Act

These two laws get confused often. The SCRA, covered here, caps interest at 6% on debt from before you entered active duty. The separate Military Lending Act (MLA) caps the cost of new credit taken out during active duty, at a 36% Military Annual Percentage Rate that bundles in most fees. If your card was opened after you were already serving, MLA is the relevant protection, not this calculator.

Related tools and guides

• Credit Card Interest Calculator →See what a balance actually costs in interest per day, cycle, and year.
• How to Lower Your Interest Rate →A script for calling your issuer, plus what to do if they say no.
• How Credit Card Interest Works →The daily rate, average daily balance, and grace period, in one guide.
• Have a Business Card Too? →Business cards lose several protections personal cards keep. Here's what's different.
• If a Balance Already Charged Off →A charge-off doesn't erase the debt. What actually happens next.