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How to Reduce Interest Rates under the Servicemembers Civil Relief Act (SCRA)

The Servicemembers Civil Relief Act (SCRA) offers military members many protections, including the ability to have interest rates reduced to 6% when they join the military, or when they are activated if they are members of the Guard or Reserves. Getting interest rates lowered isn’t automatic, however, and it also does not apply to any and every debt a military member has. It only applies to debts taken out before the member enters active military service. There are a few other important items of note, so let’s jump in and discuss in greater detail how to get reduced interest rates under the SCRA.

Servicemembers Civil Relief Act

Debts Covered by the SCRA

How this works in layman’s terms: If you have a debt before you join the active military service, you can have the interest rate reduced to 6%. If the loan is a mortgage, the rate can be reduced for the duration the member is in...