Lesson · Facts first · Free
Veterans and service members — the credit rules written for you
SCRA, MLA, and the VA home loan are real federal protections most lenders will not mention. Claim them — they apply to you by law, not by favor.
The facts
- 01VA home loan: no down payment and no monthly PMI for eligible veterans, service members, and surviving spouses. A one-time VA funding fee applies (financeable into the loan) — and it is WAIVED entirely for veterans with a service-connected disability rating of at least 10%.
- 02SCRA (Servicemembers Civil Relief Act): on debts incurred BEFORE active duty, you can cap the interest rate at 6% per year with a written request and a copy of your orders — the excess interest is forgiven, not deferred, and applies retroactively to the active-duty date.
- 03MLA (Military Lending Act): for covered loans to active-duty members and dependents (payday, title, refund-anticipation, most installment loans), total cost is capped at 36% APR, auto-secured loans and mandatory arbitration are banned, and prepayment penalties are illegal.
- 04SCRA also protects you in court (no default judgments against active-duty members without a court-appointed representative) and lets you terminate residential leases early on PCS orders or separation — Military OneSource and your JAG office review SCRA requests free.
- 05Free monitoring: active-duty members can get free electronic credit monitoring from the bureaus, and everyone gets free weekly reports at AnnualCreditReport.com plus free freezes at all three bureaus. Set a calendar reminder to pull one bureau report every four months — that is a full year of coverage, free.
Sources
- VA — Home loans and COE: https://www.va.gov/housing-assistance/home-loans/
- FTC — SCRA interest-rate cap (6%): https://consumer.ftc.gov/articles/creditor-requirements-under-servicemembers-civil-relief-act-scra
- CFPB — Resources for servicemembers: https://www.consumerfinance.gov/consumer-tools/servicemembers/
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Disclaimer: Educational information only — not credit repair, legal, or financial advice. You can always dispute items yourself for free directly with the bureaus.