Servicemembers Civil Relief Act (SCRA) Eligibility Guide and Checklists

Military life comes with unique responsibilities and expectations. To help you focus on your mission, a federal law called the Servicemembers Civil Relief Act (SCRA) offers you a variety of financial protections.

SCRA caps interest rates on debts, shields the collateral used to secure pre-service loans from repossession without a court order and lets you break certain contracts without penalty. You’ve earned these protections through your military service. The interest rate cap won’t be applied automatically, so you’ll need to request it.

This guide walks you through everything you need to know to apply for SCRA benefits so you can get the full protection you deserve.

SCRA eligibility

Not everyone in uniform automatically qualifies for SCRA protections. The law covers specific types of military service. Knowing your situation helps you understand what benefits you can request. You’re eligible for SCRA if you’re:

• Active Duty in the armed forces: Army, Marine Corps, Navy, Air Force, Space Force or Coast Guard
• a Reservist or National Guard member serving on Active Duty under Title 10 orders
• a National Guard member mobilized under Title 32 federal orders for more than 30 consecutive days
• an Active Duty commissioned officer of the Public Health Service or the National Oceanic and Atmospheric Administration (NOAA)
• in some cases, a family member or dependent of a qualifying Servicemember

What’s included in SCRA protections?

SCRA protections cover more than just interest rates. The law touches nearly every area of your financial life, from housing to taxes to legal matters. Here’s what eligible Active Duty Servicemembers can access:

• 6% cap on pre-service debts. SCRA caps interest rates at 6% on debts you took on before Active Duty. This includes credit cards, auto loans, personal loans and mortgages. 
• Reduced interest rates. Some lenders voluntarily offer rates lower than 6% to Active Duty Servicemembers as a service benefit. 
• Postponement of foreclosures. For pre-Active Duty loans, lenders can’t foreclose on your property without a court order while you’re on Active Duty and for 1 year after. 
• Deferred income taxes. Some states defer income tax payments for Servicemembers. SCRA lets you maintain your home state residency for tax purposes. 
• Eviction prevention. Landlords can’t evict you or your family without a court order if your rent is below a certain amount. 
• Prevention of repossession of property. For pre-Active Duty loans where an installment was paid before Active Duty, creditors can’t repossess your car, furniture or other property without a court order while you’re on Active Duty. 
• Protection against default judgments. Courts can’t enter a default judgment against you if your military service prevents you from appearing. 
• Postponed civil court matters. Courts must postpone civil proceedings if your military duties prevent you from attending. 
• Protection for small-business owners. If you own a small business, you may be able to apply to a court to postpone or reduce certain business obligations while you’re on Active Duty. This relief isn’t automatic so you need to petition a court to get it. 
• Termination of residential lease agreements. You can terminate a lease early without penalty if you receive PCS orders or deploy for 90 days or more. 
• Termination of automobile leases. You can terminate an auto lease early if you receive PCS orders outside the continental US or deploy for 180 days or more. 
• Termination of phone service. You can cancel phone contracts without early termination fees if you deploy or PCS to an area where your carrier doesn’t provide service. 
• Life insurance coverage protection. Insurers can’t reduce benefits or deny claims on life insurance policies issued before Active Duty based on military service. 
• Suspension of professional liability insurance. You can suspend professional liability insurance while on Active Duty and reinstate it without penalty when you return. 
• Voting rights in your home state. You can maintain your home state residency and voting rights even if military orders move you to another state.

How Servicemembers can request SCRA benefits

While most SCRA protections apply automatically, some benefits like the interest rate cap require you to take action. Here’s how to make sure you’re getting everything you’re entitled to:

Step 1: Gather your documentation

Before you contact any creditors, gather the documentation you’ll need. To get the SCRA interest rate cap, you’ll need to provide a written request along with a copy of your military orders. For benefits like lease termination, a lender or landlord could ask for documentation, so keep copies of your orders handy to help the process go smoothly. For foreclosure protection, you don’t need to send proof of Active Duty status because lenders and courts can confirm eligibility through public databases.

Step 2: Identify which debts qualify

Review your credit cards, loans and other obligations. SCRA interest rate protections apply only to debts you had before starting Active Duty. If you opened an account after your Active Duty start date, it doesn’t qualify for the 6% rate cap.

Step 3: Contact each creditor

Many financial institutions have dedicated SCRA specialists. Reach out to every lender you want to receive SCRA benefits from. Ask specifically how they want to receive your request. Some accept online submissions, while others require fax or mail. 

Step 4: Submit your request in writing

Put your request in writing and include your Active Duty start date, your branch of service and the date your orders were issued. Attach your supporting documentation. If you’re requesting protection for a specific debt, include the account number. If you’re deployed or unable to contact your lenders directly, someone with valid power of attorney can submit SCRA requests on your behalf.

Step 5: Follow up

Lenders typically have a few weeks to process SCRA requests, but timelines vary. Follow up if you don’t hear back within 60 days. Keep records of all communication, including dates, names of representatives and what they told you.

Step 6: Verify the benefits were applied

Once your lender confirms they’ve processed your request, check your next statement. Make sure your interest rate dropped and that the reduction was applied retroactively to your Active Duty start date. If anything looks incorrect, contact the lender immediately.

Required documents for your SCRA application

Lenders need proof that you qualify for SCRA before they can apply benefits to your accounts. Having the right documentation ready speeds up the process and reduces the chance of delays or denials.

What doesn’t qualify for SCRA interest rate relief?

Understanding what SCRA doesn’t cover helps you set realistic expectations when applying for benefits. If you’re not sure whether something qualifies, ask your lender directly. 

You may not qualify for SCRA in these situations:

• You incurred debts after your Active Duty start date. The 6% interest rate cap applies only to debts you had before you entered Active Duty. If you opened a credit card or took out a loan after your Active Duty began, it won’t qualify for relief.
• You have debts from previous Active Duty periods. If you incurred debt during an earlier period of Active Duty, and then you left Active Duty and later returned to Active Duty, that debt doesn’t qualify. SCRA only covers obligations you took on outside your Active Duty periods.
• You have a routine deployment. If you’ve been on Active Duty for years and then deploy, that deployment doesn’t trigger new SCRA benefits since you were already on Active Duty.
• You’re part of a National Guard state activation. State activations that aren’t federally funded typically don’t qualify. You need Title 10 orders or Title 32 federal orders lasting more than 30 consecutive days.

Common misconceptions about SCRA benefits

SCRA is a straightforward law, but misinformation can lead to confusion or missed opportunities. Here’s what you need to know about some common SCRA myths:

Myth 1: All SCRA benefits apply automatically

Most SCRA protections do apply automatically once you’re on Active Duty, including those related to foreclosure prevention, repossession and lease termination. The one key exception is the interest rate cap. Your lender won’t automatically reduce your interest rate to 6%. You need to submit a written request along with a copy of your military orders to receive this benefit.

Myth 2: All military service qualifies for SCRA

Only Active Duty members qualify. If you’re a Reservist or Guard member who’s drilling one weekend a month or doing annual training, you don’t have SCRA protections unless you’re called to Active Duty on qualifying orders. 

Myth 3: SCRA eliminates your debt

SCRA reduces interest rates and provides other protections, but it doesn’t forgive what you owe. You still have to make your monthly payments on time. Missing payments can hurt your credit score and lead to collections. SCRA doesn’t prevent that from happening.

Myth 4: SCRA covers all your accounts

SCRA only protects debts you had before Active Duty. Any credit cards, loans or other obligations you open after your Active Duty start date don’t get the interest rate cap. They’re also not eligible for other SCRA financial protections.

Myth 5: SCRA benefits last forever

Most SCRA protections end when your Active Duty period ends. There are 2 notable exceptions to keep in mind. The foreclosure protection extends for 1 year after your Active Duty period. The 6% interest rate cap on mortgages also continues for exactly 1 year after your Active Duty period ends. For all other types of debt, the interest rate cap ends when your Active Duty period does.

Eligibility for spouses and co-borrowers

SCRA protections cover the Servicemember, but spouses and co-borrowers can benefit in certain situations. If you and your spouse have a joint debt that you took out before entering Active Duty, SCRA protections apply to the whole loan. That means both of you get the 6% interest rate cap. Any debt that belongs only to your non-military spouse typically won’t qualify, even if they took it on before you joined.

Co-borrowers who aren’t your spouse, like a parent who co-signed a loan, also get SCRA protections as long as the debt started before your Active Duty. If you give someone power of attorney, they can request SCRA benefits for you. That can help if you’re deployed or can’t easily reach your lenders.

Timing rules for loans & obligations

SCRA has specific timing requirements. Keep these important time frames in mind so you can get the full protections you’ve earned.

• The 180-day post-service application deadline. You can submit your SCRA request at any time between when you get your Active Duty orders and up to 180 days after your service ends. Applying as soon as you receive your orders gives you the most time for the benefit to take effect. It also helps you avoid having to wait for any refunds later.
• The 90-day deployment window for lease termination. To break a residential lease early under SCRA, you need orders for a deployment of at least 90 days or a PCS move.
• Retroactive rate reductions. If you submit your request after your Active Duty has already started, your lender must apply the interest rate cap retroactively—back to your Active Duty start date or your orders date for Reservists—and credit any overpaid interest to your account.
• When protection begins and ends. For Active Duty Servicemembers, SCRA protections begin on your Active Duty start date, not when you submit a request. For Reservists, protections begin when you receive your orders. Most benefits last for your entire Active Duty period. The interest rate cap on mortgages extends for exactly 1 year after your Active Duty period ends. The foreclosure protection also extends for 1 year after Active Duty. If you’re a Reservist who returns to reserve status rather than separating entirely from the military, protections tied to Active Duty end when your Active Duty orders expire.

What can Servicemembers do if an SCRA request is denied?

Getting denied for SCRA benefits doesn’t mean you’re out of options. Denials usually happen because of missing documentation or confusion about eligibility. 

You often can resolve the issue quickly. Start by reviewing why your lender denied the request. Common reasons include missing Active Duty documentation, the debts were opened after your Active Duty start date or your request was submitted beyond the 180-day window. Make sure the debt predates your Active Duty start date. If it doesn’t, it won’t qualify for the interest rate cap. 

If your lender says they need more proof to consider approving your application, give them what they’re asking for and resubmit your paperwork. If you think your lender made a mistake, ask about their appeals process and submit any additional documentation.

Learn more about SCRA benefits from Navy Federal

SCRA gives you financial breathing room while you focus on your mission. Most protections apply automatically once you’re on Active Duty. The interest rate cap on pre-service debt is the exception. To get that benefit, you need to submit a written request and a copy of your orders to each lender. 

Now that you know what you qualify for and how to apply, you can take action today. Gather your orders, contact your lenders and submit your requests.

If you’re a Navy Federal member, we’re here to help you through the SCRA application process. Visit our SCRA page to learn how to apply for benefits on your eligible Navy Federal accounts and get answers to member-specific questions. You’ve earned these protections, so make sure you’re using them!