$25k AmEx Personal Loan at 0.00% APR?

Dane, an O-3 reader in Japan, alerted me to Spencer’s article over at his blog Military Money Manual which claims that the SCRA benefits will reduce interest rates to 0.00% APR for an AmEx unsecured Personal Loan. Data points also reported here on reddit show this SCRA reduction method is possible. The APR waiver seemed to be a extension of goodwill for military members rather than a legal obligation. If the APR would go up to anything at all, I would just immediately pay the loan back (at no penalty), and I suggest you do the same if the APR does change.

Seeing that I really had nothing to lose, I went ahead and applied at the site here, I had no pre-qualified offers:

but my wife (who is active duty) got this:

Wow, $25k for much less than $760 a month seemed pretty good, the application was already preloaded with my bank information as well as my address. It did have a question for what the loan was for, and had this caveat:

So the loan is not for bitcoin, investing into stocks, education, or cars. I chose vacation and then had this last page:

I submitted the application and it went to pending. I was able to check my status here and it showed this familiar page:

Dan chimed in and mentioned that the loan may count as a credit card account and against the 5 max rule:

There is a Reddit thread on it here. This post in particular states how it counts for one of the slots. Might have to call in and close one of her 5 cards:

  1. SPG Luxury Card (Keep for $300 Credit and Free Night)
  2. Hilton Honors Ascend (To Be Upgraded To Aspire for $250 Air, $250 Resort, and Free Night)
  3. Delta Personal Platinum Card (Keep for Companion Pass)
  4. Delta Business Reserve Card (Just Opened)
  5. American Express Everyday Preferred Card (most likely to be closed)

Update: Approved despite having 5 cards, SCRA is not for certain


8 thoughts on “$25k AmEx Personal Loan at 0.00% APR?

  1. Christian says:

    This is awesome! So this is your wife’s account that you applied for this under? I’m assuming she’s not active duty?

  2. Christian says:


    I just check my preapproval…none for me and only 9.6k for my wife (not AD). bummer

  3. Marcus says:

    So I’ve gone through this process and took the $25K loan through a login that already had several cards with SCRA benefits. Unfortunately, AMEX did not automatically apply benefits to the loan and I am projected to pay roughly 7% APR. Calling into the personal loans customer service will get you referred to the SCRA customer service number which simply reads off your benefits but then doesn’t provide any support. No one knows how to apply SCRA benefits to your loan through any of the numbers I called and I was constantly transferred back and forth to the same departments. I finally decided to simply resubmit the online SCRA benefits inquiry and then under “other accounts to be considered for SCRA benifits” I wrote down my personal loan number. Then at the end of the inquiry I added an explanation that I was resubmitting only to have SCRA applied to my loan. That was 9 days ago and I am currently waiting for my request to be processed.

    Good luck if you call customer service. I’ll let you know if the online submission works.

  4. […] is an update to the 0.00% SCRA waved loan from AmEx I wrote about here. Reader Marcus […]

  5. Sheraz says:

    This does work.

    I was pre-approved for $25,000 with a maximum APR of 5.98%. I winded up taking a $15,300 loan. I figured a $425 per month payment was a good number to pay back each month. The lady I spoke to at AMEX (called 1-800-253-1720) 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 of those 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.

    Just shy of 30 days later I received this 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.

    Let me know if you have any questions on this. I can give you more details if you would like.


    • uiucderp2011 says:

      thanks for the datapoint! I went ahead and faxed in a written request. I just hope they don’t get rid of the 0.00% APR half way through. I will just pay the money back if that was the case.

      Thanks again,


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