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Complete Guide

The Servicemembers
Civil Relief Act

Congress passed the SCRA to let you focus on your mission, not your debts. This law caps interest rates at 6% on pre-service obligations—and you may be owed refunds for overpayments you've already made.

Calculate Your Savings Explore Topics
6%
Maximum interest rate on pre-service debts
$8B+
Left unclaimed by service members annually
1940
Year the original SCRA was enacted

Your SCRA Knowledge Base

Deep dives into every aspect of your SCRA benefits. Click any topic to learn more.

The 6% Rate Cap

How the interest rate cap works, which debts qualify, and how to calculate your potential savings.

5 min read Essential

Eligibility Requirements

Find out if you qualify based on your service status, debt timing, and military orders.

4 min read Essential

Retroactive Refunds

How to recover interest you've overpaid—even years after the fact.

6 min read High value

National Guard

Special considerations for Guard members including Title 10 vs Title 32 activations.

5 min read

Reserve Members

SCRA protections for Reservists called to active duty and how to document eligibility.

4 min read

MLA vs SCRA

Understanding the difference between the Military Lending Act and SCRA protections.

4 min read

Lease Termination

Terminate residential leases penalty-free with PCS or deployment orders.

5 min read High value

Vehicle Lease

End auto leases early without penalties when you receive qualifying orders.

4 min read

Contract Cancellation

Cancel cell phone, gym, internet, and security contracts without fees.

5 min read

Foreclosure Protection

Prevent foreclosure during service and get your mortgage rate capped at 6%.

5 min read Essential

Insurance Protections

Protect life insurance from cancellation and suspend professional liability.

4 min read

Tax Protections

Maintain state domicile, protect your spouse from taxes, and defer payments.

5 min read High value

Legal Protections

Prevent default judgments, request stays, and reopen past judgments.

5 min read

How to File Claims

Step-by-step process for filing SCRA claims with all your lenders.

6 min read Essential

What is the SCRA?

The Servicemembers Civil Relief Act is a federal law that provides financial and legal protections to military personnel on active duty. Originally passed in 1940 as the Soldiers' and Sailors' Civil Relief Act, it was updated and renamed in 2003.

The law recognizes that military service can make it difficult to meet financial obligations and protects service members from unfair treatment by lenders, landlords, and courts during their service.

The most valuable benefit for most service members is the 6% interest rate cap on pre-service debts. This applies to credit cards, mortgages, auto loans, student loans, and other obligations incurred before entering military service.

Key SCRA Protections

1

6% Interest Rate Cap

Caps interest at 6% per year on debts incurred before active duty. Excess interest is forgiven, not deferred.

2

Lease Termination Rights

Terminate residential or vehicle leases early without penalty when receiving PCS or deployment orders.

3

Foreclosure Protection

Protection from foreclosure and eviction during service and for 12 months after.

4

Default Judgment Protection

Courts must appoint an attorney before entering default judgment against service members.

How to Claim Your Benefits

The SCRA claims process is straightforward. Here's what you need to do.

Verify Your Eligibility

Confirm your active duty status and identify debts that were incurred before your service began. Use the DMDC SCRA website to get official verification.

Gather Your Documentation

Collect your military orders showing your active duty start date and statements from your lenders showing account details and interest rates.

Submit Requests to Each Lender

Contact each lender with a written request for SCRA benefits, including copies of your military orders. Each lender has their own process.

Track & Receive Your Benefits

Follow up with lenders to ensure your rate is reduced and any retroactive refunds are processed. This can take 30-90 days per lender.

Do You Qualify for SCRA Benefits?

Answer yes to all four to confirm your eligibility

Active Duty Status: You are currently on active duty or have been on active duty
Pre-Service Debt: You have debts that were incurred before your active duty began
Interest Rate Above 6%: Your current interest rate on qualifying debts exceeds 6%
Military Orders: You can provide a copy of your orders or verification

Frequently Asked Questions

The SCRA caps interest rates at 6% per year on debts incurred before military service begins. This applies to credit cards, mortgages, auto loans, student loans, and other obligations. The excess interest is forgiven, not deferred.
Active duty military members, National Guard members activated under federal orders (Title 10), and Reserve members called to active duty. The debt must have been incurred before your military service began.
Yes. If you've been paying more than 6% on pre-service debts while on active duty, lenders must refund the excess interest. Many service members are owed thousands in retroactive refunds.
You can request SCRA benefits at any time during active duty and up to 180 days after. For retroactive claims, there is no set deadline, but it's best to file as soon as possible to recover owed interest.
No. Requesting SCRA benefits does not affect your credit score. In fact, the reduced interest rate can help you pay down debt faster, which may improve your score over time.
No. You can file SCRA claims yourself or use a service like SCRA Saver. A lawyer is generally only needed if a lender refuses to comply with the law.

Ready to Claim Your Benefits?

Stop leaving money on the table. SCRA Saver automates the entire claims process so you can focus on what matters.