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The Platinum Card® from American Express is my #1 recommended card
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UPDATE 8 February 2020: I have received multiple reports that American Express no longer offers this deal to military servicemembers. This is basically confirmed by multiple data points as of February 2020.
If you open an acccount before active duty, SCRA will apply and the interest rate MAY be lowered to below 6%. Otherwise, if you open an account during active duty, AMEX will apply Military Lending Act (MLA) rules and will not waive the interest on the loan.
For now, my recommendation is you DO NOT apply for this loan if you are expecting 0% interest. AMEX is no longer reducing the interest on this loan if you are on active duty when you apply for the loan.
American Express offers a $3500 to $40,000 personal loan to active duty US military servicemembers with 0% interest for up to 3 years.
The interest rate is initially set at whatever rate your credit score qualifies you for. However, after you apply for Servicemember Civil Relief Act (SCRA) benefits to be applied to your AMEX loan, the interest rate drops to 0%.
You must be an American Express Card Member before you are eligible for the loan. If you are a military servicemember with good to excellent credit, I recommend the Platinum Card from American Express (learn how to apply for my top recommended card here).
The Amex Platinum is my top recommended card because:
The Platinum Card® from American Express
Learn how to apply on our partner's secure site
- $695 annual fee.* See more details about military protections for you and your spouse
- Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership
- Earn 5x points on airfare booked directly with airline or on amextravel.com up to $500,000 per calendar year
- Earn 5x points on prepaid hotels at amextravel.com
- $200 Annual Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings through American Express Travel using your Platinum Card®. Note that The Hotel Collection requires a minimum two-night stay
- $240 Digital Entertainment Credit: Get up to $20 back in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Disney+, a Disney Bundle, ESPN+, Hulu, Peacock, The New York Times, and The Wall Street Journal. Enrollment required.
- $200 Uber Cash: Uber VIP status and up to $200 in Uber savings on Uber Eats and rides every year. Only available to the basic card member, Terms Apply
- $200 Airline Fee Credit: Up to $200 in statement credits per calendar year in baggage fees and more at 1 qualifying airline
- $199 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $199 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
- This is a MAJOR time saver–$100 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck® (through a TSA PreCheck® official enrollment provider) application fee, when charged to your Platinum Card®! Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
- Complimentary access to the American Express Global Lounge Collection® lets you visit more than 1,400 airport lounges across 140 countries and counting. You can love the lounge life with more airport lounge options than any other credit card issuer on the market. As of 03/2023.
- $155 Walmart+ Credit: Cover the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax.
- Up to $100 annual Saks Fifth Avenue credit, enrollment required
- No foreign transaction fees
- The Platinum Card® from American Express – learn how to apply
- Read my full review of the Amex Platinum card for military, terms apply
You can learn more about AMEX SCRA benefits on credit cards, including how to get your annual fees waived on all AMEX cards.
In this post:
How to Get the Military AMEX Personal Loan
Go to AMEX website and click the box in the upper right hand corner to “Check Your Rate.” If you already have an AMEX account, you'll be asked to login and then your rate and loan amount will be presented to you. I was only offered $25,000 at 8.98% interest, but many troops are offered the full $40,000 amount.
The offer is pre-approved so there is no impact to your credit score to apply. There may be an small effect (positive or negative) to your credit score if you take the loan out, as AMEX will report it to the credit bureaus.
AMEX distributes the funds to your bank account within 3-5 business days after you apply. You can also have the loan amount directly post to any credit cards you need to pay off. This is a great way to consolidate your debt and stop being in debt.
As soon as you receive confirmation that your application was successful, call the American Express Military Hotline for SCRA Personal Loans at 1-800-253-1720 or 1-336-393-1111.
Ask for your loan to be reviewed for SCRA military benefits. Be polite and courteous! They may take a few days to review your account and then send you an email.
AMEX Personal Loan for Military SCRA Waived
I've received two data points now about the interest free AMEX personal loans for active duty. Here's what my buddy Dan messaged me in October 2018:
A friend clued me into this, and it worked: Just got a $40k personal loan from Amex, originally for 5.98% interest (36 months). Applied for SCRA benefits (I’m active duty military) on another Amex product (new SPG Luxury) and got this msg from Amex today:
To support the men and women who serve in the United States Armed Forces, we are handling your loan referenced above in accordance with the Servicemembers Civil Relief Act (“SCRA”).
The SCRA provides for a maximum annual interest rate of 6% per year on loans you received before starting active military duty. However, at this time we have chosen to reduce the interest rate on your SCRA eligible balance to an Annual Percentage Rate (APR) of 0.00%.
We have issued credit for the full amount of applicable interest charges and fees to your loan account. This amount will appear as a credit(s) on your loan invoice. The total interest charges and fees you have already paid will be returned to you in the form of a check under separate cover. The check amount will appear as a debit on your loan invoice and will be offset by our credit(s). In addition, we will waive any future late payment and returned payment fees for the duration of your active military duty.
Beginning with your next loan invoice and thereafter, your new Monthly Payment will be $1111.11. We have also adjusted any monthly payment(s) previously billed but not yet paid, to reflect the new Monthly Payment amount.
If you are currently enrolled in AutoPay for this loan, your future AutoPay amount will reflect the new monthly payment amount above and no additional action is required.
If there are any additional accounts you would like to be reviewed for SCRA relief, please call us at 1-800-253-1720. If you are outside the United States, please call us collect at 1-336-393-1111. We are grateful for the service and devotion you have shown to our country.
Sincerely, American Express Customer Care
The other data point I have is from a guy at work buying stocks on margin using personal loans. Don't be that guy. However, he also had a 0% interest rate loan after applying SCRA benefits. He set up himself up to lose his shirt and $100,000+ during the next down turn.
| Pre-Approved Loan Amount | Monthly Payment at 0% Interest |
|---|---|
| $40,000 | $1111.11 |
| $25,000 | $694.44 |
| $10,000 | $277.77 |
What To Do With a No Interest Military AMEX Loan
While taking on dumb debt is never a good idea, a 0% interest loan paid back over 3 years presents some interesting opportunities. This is definitely a better deal than a payday loan or even the USAA Career Starter Loan.
Borrowing to invest almost never makes sense, but if you can borrow at 0% and get a guaranteed 10% return in the Savings Deposit Program, why wouldn't you borrow?
At 0% for 3 years, you have a few options:
- Pay off your student loans
- Pay off USAA Career Starter Loan
- Pay off credit card debt
- Buy 2% Certificates of Deposit (CDs) (arbitrage)
- Home renovation
- Max out your SDP if you are deployed
- Pre-pay your mortgage
The AMEX Personal Loan is an amazing opportunity to get yourself out of debt without accruing additional interest along the way. This is a rare opportunity to out yourself in a better position 3 years from now than you are today.
If you are on the path to financial independence (FI), your debt is an emergency. You need to pay it off ASAP and start investing in appreciating assets that can eventually replace your active income with passive income. The sooner you get out of debt, the closer you are to FI.
I'm sure there are some other ideas I'm not thinking of. Let me know in the comments how you would use $40,000 at 0% interest!
AMEX 0% Loan Military Frequently Asked Questions
No, not any more after Jan 2020. AMEX changed the way they implement the SCRA and MLA laws. If you open a personal loan while on active duty, do not expect AMEX to lower the interest rate to 0%.
Any thoughts on receiving this as a guard or reserve member off of a set of orders anticipating starting a set of orders.
I do not think it works any more. Please try and let us know if it does.
i got a loan in dec and applied for the SCRA.. got the denial email but my first payment was all principle.. so holding my breath see if it continues to stay that way or not.
I just tried this tactic and it didn’t work out. I’ve been an AMEX member for years and applied for the loan. The money came in as promised and then I instantly called for SCRA benefits. I got the following email from AMEX:
To support the men and women who serve in the United States Armed Forces, we are handling your account referenced above in accordance with the Servicemembers Civil Relief Act.
The Servicemembers Civil Relief Act provides for a maximum annual interest rate of 6% per year on loans you received before starting active military duty. Our records indicate your account was opened during the active duty time period. Therefore, this account is not eligible for relief under the Servicemembers Civil Relief Act.
This completes our review of this account. If there are any additional accounts you would like reviewed for Servicemembers Civil Relief Act benefits, please call us at 1-800-253-1720. If you are outside the United States, please call us collect at 1-336-393-1111.
The inquiry took about 25 days to complete. While I was prudent and didn’t actually spend any of the money before AMEX contacted me, I’m still disappointed.
Anything I’m missing here? Should I call back? Thanks.
It looks like they very recently (this month) changed their policy on this. I’m working to get an update on AMEX SCRA denials.
I was pre-approved for $30,000 last month with 812 credit and a Platinum card open for six years, this month it went down to $25,000 loan and my credit went up to 814. I have no debt except for a mortgage. Anyone have any luck in calling to see if you can get the full $40k instead of the pre-approved amount?
Happened to me as well. You just need to keep checking. It will go back up. My pre approval went from 22k to 5k overnight and then went back up about two months later. I think it’s randomized. Don’t expect 0% interest. I was just denied the paperwork Ben though they give me SCRA bens on all of my Amex cards.
Like a few of you, I was not being offered the pre-approval so I called Amex’s personal loan department and it turns out, you need to have an account that’s been open for at least 9 months. My first platinum card was opened in June. Ill try again in March.
Spencer… could this be why people are being denied as of late and not because MLS doesn’t offer 0% interest?
MLA*
Can you take out the full $40k and wait until the end of the 3 years to pay back the full 40k or do you have to pay back some month to month?
No, monthly payments are required. It’s a personal loan that’s paid back in monthly installments over 36 payments or 3 years.
To anyone that has gotten the 0% rate- Do you have to actually receive the loan prior to the discussion about the rate reduction? I do not want get the loan on hopes that they would reduce the interest rate. Any tips on how to approach the conversation are appreciated.
Yes, you have to actually open to account before the interest is reduced. It’s very low risk, just pay back the loan if you don’t get the interest rate deduction.
I got pre-approved for $30,000 at 7.98%! I have 2 AMEX cards: personal Platinum and Blue Cash Preferred and have been an AmEx cardholder for almost a year.
Great to hear!
Has anyone tried this with a Marcus personal loan? I get their mailer all the time.
I recently opened a few (additional) Platinum and Gold cards. When I went to check my loan offerings, it said there are no offers available to me at this time. I’m guessing because I just opened cards within the last few months.
Has anyone tried this with a 5-year loan option? I was successful with taking the loan and getting 0% for 3 years, but I’d be more interested in the 40,000$ at 5 years rather than 3. Just trying to check it out.
Does the Servicemembers Civil Relief Act only apply to loans/debt taken on PRIOR to Active Duty?
Usually, but some companies (such as AMEX in the example in this post) go above and beyond the limits of the law.
Just wanted to provide a recent success story. Following the steps outlined aboved, I applied for the loan on 18 Feb. I immediately called to have my application reviewed to receive SCRA benefits (using the number above). The phone call took roughly 10 minutes and I was transferred from customer service, who in turn transferred me to the personal loans department, who transferred me to someone else. Though the transfers were less than ideal, everyone was very helpful and apologetic for the transfers. On 19 Feb (next day) I received an email saying that my loan was being reviewed for the benefits. On 20 Feb the money was in my account and on 21 Feb I received the email stating that my APR will be reduced to the 0% as published.
Did anyone tell you prior to getting the loan that your APR would be reduced?
Is the reduction for the life of the loan or could they change the rate at some point?
The reduction is for the length of the loan. No one at AMEX will confirm this policy but there’s lots of data points in the comments of this page!
Has anyone paid some of this loan off in large chunks? For instance, if I pay most of the loan off with my tax return, will it push payments back, or do the monthly payments continue even though I’ve paid that chunk off?
Any updates on this from anyone or recent success stories? I applied for an AMEX personal loan on January 7th and subsequently received the full pre-qualified amount of $25,000 at a rate of 5.98%.
It only took a day or two for the cash to be deposited into my checking account, and on Jan 9th I called and spoke with the AMEX customer service folks. After getting transferred around a couple of times, I was able to have the SCRA inquiry opened to have benefits applied to the loan itself (I already have SCRA benefits on my personal AMEX platinum). They advised that the process could take up to 60 days, but I was hoping to have a resolution quicker than that based on the stories I’ve seen on this blog and others.
It has now been 11 days since the inquiry was opened, and on the AMEX tracker it still says “in progress”. I’m probably just being impatient, but I really hope they didn’t clamp down on this perk with the personal loans. At 5.98%, while still a (relatively) good rate for personal loans, the calculus for the cost-value/risk-assessment decision matrix is obviously a bit different than the 0% interest we were striving for.
I will update this post when I hear back from AMEX.
I understand your anxiety, but hold the line! Reports below indicate people have waited up to 27 days for the review to complete. Please keep us updated on your results.
Can concur. Mine was about a month as well. Just had friend do and took him about a week and a half.
Update on this: On Feb 13, 2019 (which was 35 days after making the inquiry with AMEX customer service to have SCRA benefits applied), I received the e-mail I was hoping for.
“The SCRA provides for a maximum annual interest rate of 6% per year on loans you received before starting active military duty. However, at this time we have chosen to reduce the interest rate on your SCRA eligible balance to an Annual Percentage Rate (APR) of 0.00%.”
$25k at 0% over 3 years opens up some very nice possibilities, similar to the USAA starter loan…only better. For now, it’s just sitting in a checking account, but my intent is to use it in one way or another to advance my position in the real estate game.
This was a great find, and I’m thankful I have been able to continue to follow this blog after all these years, picking up many useful tidbits along the way. Thanks for the great work!
I tried several times by phone to have them submit the loan directly for SCRA review, and each time was told that the system is set up so that only credit cards can be reviewed. I ended up having them submit a SCRA review through the phone for one of my cards that was already receiving SCRA benefits, and just made sure to have them clearly annotate that I would like the personal loan reviewed in particular. Roughly 1 week later I got the email that Sheraz posted above.
With so many restrictions in the terms such as “You agree that you will not use your loan to pay for post-secondary education expenses, for real estate, for business, for securities, for vehicle purchases (other than as a downpayment) or for any purpose prohibited by law or not otherwise permitted under this Loan Agreement.” it is hard to use it for an advantage, unless I am missing something? *I know credit card payment is #1, but what else?
You should follow the terms and conditions, but once you have received the cash from the loan in your checking or savings account, there is really no way for them to track how you use the loan.
Here’s the message I just received when I tried to apply for the personal loan. I’m currently stationed OCONUS, not sure if that has anything to do with it or not.
“At this time, we do not have any pre-approved offers for a personal loan available to you. Pre-approved offers are based on creditworthiness and other factors and are subject to change over time.
We apologize for any inconvenience. Thank you for your interest in American Express Personal Loans.”
I am OCONUS and was pre-approved. What is your credit score? How many cards do you have with AMEX?
775 credit score. 5 AMEX cards.
I’m not sure. With that credit score and history of AMEX accounts you should have no problem. I would try calling AMEX and seeing if they can manually review your account if you are still interested in the loan. I am OCONUS and have an APO, AE address on my AMEX profile and was pre-approved.
anyone have success with spouse???
My guess is no, as the zero interest offer is being offered under AMEX’s interpretation of the SCRA law, which only applies to the servicemember, not any dependents/spouses.
Update 11 Jan 2020: Yes, just had a positive report of a spouse getting the AMEX Personal Loan with SCRA 0% interest. Date: 2 Jan 2020. State is Nevada. Also there are some positive reports on Reddit as well.
@Julio Mike Jones, 2x negative reports for spouses, one in VA & one in PA. We tried…
Also — I took myself off my wife’ cards as an auth user this summer, IOT tighten up credit report. She immediately lost all waivers. Had to add myself back on and reapply for all waivers…
Yes, just had a positive report of a spouse getting the AMEX Personal Loan with SCRA 0% interest. Date: 2 Jan 2020. State is Nevada. Also there are some positive reports on Reddit as well.
Awesome find. I’m using it to fund some checking/savings account bonuses for awhile and then I’ll probably just invest the rest into my normal brokerage account and backpay the loan with the money that I normally invest each month. I told another friend who is going to use it to renovate his basement.
Wow, 1. need to consider amex for personal loans even if non-military and 2. stick that into a 3% bank account with autopay– that’s several grand of free money from amex…
This is fantastic! I was pre-approved for $25,000 with a maximum APR of 5.98%. I took a loan for a lesser amount and will use it for a down payment on a house. The lady I spoke to at AMEX put in a request for someone to review my personal loan under the SCRA. The call from start to finish took nine minutes and about 3-4 minutes I was waiting to be connected. I just answered a few questions so they can verify my service. She said it could take up to 60 days to get a response back. Hopefully, it goes a lot sooner than that. Hoping for 2-3 days!
Side note: I’m wondering if I can do this again in three years. It would be pretty awesome to continually take interest free loans every three years. This can really help jump start some things!
I wanted to give an update on this:
This definitely works.
I winded up taking a $15,300 loan. I figured a $425 per month payment was a good number to pay back each month.
On 1 November, 27 days after I called in, I received two emails.
First email:
To support the men and women who serve in the United States Armed Forces, we are handling your loan referenced above in accordance with the Servicemembers Civil Relief Act (“SCRA”).
The SCRA provides for a maximum annual interest rate of 6% per year on loans you received before starting active military duty. However, at this time we have chosen to reduce the interest rate on your SCRA eligible balance to an Annual Percentage Rate (APR) of 0.00%.
We have issued credit for the full amount of applicable interest charges and fees to your loan account. This amount will appear as a credit(s) on your loan invoice. The total interest charges and fees you have already paid will be returned to you in the form of a check under separate cover. The check amount will appear as a debit on your loan invoice and will be offset by our credit(s). In addition, we will waive any future late payment and returned payment fees for the duration of your active military duty.
Beginning with your next loan invoice and thereafter, your new Monthly Payment will be $437.14. We have also adjusted any monthly payment(s) previously billed but not yet paid, to reflect the new Monthly Payment amount.
If you are currently enrolled in AutoPay for this loan, your future AutoPay amount will reflect the new monthly payment amount above and no additional action is required.
If there are any additional accounts you would like to be reviewed for SCRA relief, please call us at 1-800-253-1720. If you are outside the United States, please call us collect at 1-336-393-1111.
We are grateful for the service and devotion you have shown to our country.
Sincerely,
American Express Customer Care
Second email:
To support the men and women who serve in the United States Armed Forces, we are handling your account referenced above in accordance with the Servicemembers Civil Relief Act.
The above referenced account was previously adjusted based on the Servicemember’s Military Service dates provided in accordance with the Servicemembers Civil Relief Act. Any billed interest or fee credits due have been previously credited to the account. New Card activity on your account is subject to the terms of your Cardmember Agreement, including Standard APRs as applicable. Additionally, we have suppressed the following fees from billing on your account statement for the duration of your active military duty:
Annual Membership fees
Overlimit fees
Late Payment fees
Returned Payment fees
Statement Copy Request fees
This completes our review of this account. If there are any additional accounts you would like reviewed for Servicemembers Civil Relief Act benefits, please call us at 1-800-253-1720. If you are outside the United States, please call us collect at 1-336-393-1111.
We are grateful for the service and devotion you have shown to our country.
Sincerely,
American Express Customer Care
————BREAK————
As you can see, I didn’t exactly get a $425 monthly payment due to how long the review took. Doesn’t matter to me, it is interest free. I’m still wondering if I can do it again in once the loan is fully paid back.
Let me know if anyone has any additional questions,
-Sheraz Cedeno
Which of the numbers in the article did you call? I’ve called a number of times but I always received a rep who didn’t know how to apply SCRA benefits to the personal loan and therefore I kept bouncing around to different departments. I finally gave up and sent in an online request with my credit card and then added my personal loan account number under the “additional accounts to apply SCRA benefits” section. We’ll see if it works that way as well.
Do you know if they offer similar terms to Retirees?
No, just servicemembers on active duty orders.
Thank you for this post! Never knew about this.