Military Families
SarahTx5701
member
lower interest rate on loans & CC's while deployed?
SarahTx5701
member
My coworker told me the banks will lower our rates for us while dh is deployed. All I can find online is that they are required to lower them IF you acquired the debt BEFORE you enter the service.
Has anyone called their banks and gotten any sort of reduction in rates during a deployment?
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Re: lower interest rate on loans & CC's while deployed?
I was told the same thing prior to DH's last deployment. I called USAA regarding our credit card and with proof of deployment, they lowered the APR to 4.5%. I believe they also said you can call when you PCS, birth of a child, divorce or any other life changing circumstances and they will lower the APR for a year.
I called Bank of America and they lowered it to 5 or 6% I want to say for the 7 months he was deployed. You just have to fax them something saying he is deployed and how long he will be deployed.
HTH!
I have always read that you can have all your interest rates lowered to 6%, though we have no accts except credit cards at a rate higher than that, so I haven't actually done it with a non-USAA bank.
If you are a USAA customer (and I hope you are! they are the BEST!!), all you do is call and say "my DH is deploying on X date" and they will automatically adjust whatever various accts need it (i.e. lower rates, take DH off the car insurance, etc). With this deployment, I was told by USAA that they would lower the interest rate on the cc to 6%, but then when DH redeploys, if we send a copy of his OEF vet cert (I forget what the form # is), they will then credit back any interest we accrued during the deployment... in essence, making our interest rate 0% for the year he was away. I may have somewhat misunderstood this, but that's the impression a few different friends took away when they called, so call and ask. Either way, USAA will automatically do all the things you're eligible for when DH leaves.
Edit: Just went and checked and our USAA cc's are at 4%, so I guess that's the rate they lowered it to : ) But I have always heard 6%, so not sure if the 4% is just a USAA service.
You should be able to find all the details here:
https://www.servicememberscivilreliefact.com/
We did this during MH's last deployment. And like PP said, USAA will automatically adjust everything on their end if you call them. Some credit card companies will lower your rate lower than the 6% required rate as well. Just give each person a call and tell them, "my husband is deployed and due to the service member's civil relief act we need our interest rate lowered". HTH!
well i just called Navy Fed (i hate them with a passion!) and all i asked for was a way to lower the interest rate on my car loan because its 12% and i have never missed a payment, its been 2 years. "Navy Federal is not currently accepting at applications in lowering APR at this time."
ARE YOU KIDDING ME?!?!!?!? that is so dumb... sorry that just really irritated and just adds to why i hate them
The lowering of the rate during deployment is only for accts in the name of the person deploying (or joint accts with that person on them), not for accts of someone who is NOT deploying.
i wish i'd known about this a month and a half ago when dh left! we could have saved some money. it didn't even occur to me to take him off the ins and stuff.
We PCS'd to Japan last January. My DH called and got his interest rate reduced on his car loan to 6% while we are gone. I tried to do it with my car (he is not on the loan). I though I would love it a shot since we were PCS'ing and my name was on the orders as well, but they wouldnt go for it becuase he wasnt on the loan..
Depending on your insurance company, they may credit you back the money from the day he left. I would definitely call and ask.