Being a disabled veteran can open up some financial doors most Americans don't know about. When it comes to credit cards, that includes fee waivers, lower rates through the Servicemembers Civil Relief Act (SCRA), and more flexible rules about what counts as income. Here's how to find the right credit card as a disabled veteran and what to look for.
VA Benefits Count as Income
One of the biggest misconceptions is that disability compensation doesn't count as income for a credit card application. It absolutely does. Federal law allows you to include:
- VA disability compensation.
- VA pension income.
- Social Security and SSDI payments.
- Retirement income from military or civilian pensions.
- Any earned income from work you can do.
List your total annual income, not just your paycheck. This can significantly improve your approval odds and the credit line you're offered. If you also receive Supplemental Security Income, our guide to installment loans for SSI recipients covers how SSI stacks up alongside VA benefits when a lender is sizing you up.
Lenders Friendly to Veterans
These banks and credit unions are known for working well with veterans:
- Navy Federal Credit Union — open to veterans, active duty, and family. Offers cards like the cashRewards and More Rewards American Express with competitive terms. If your score needs work before applying, read our Navy Federal Secured Credit Card review for a deposit-backed option that still earns cash back.
- USAA — serves veterans and their families. Known for fee waivers, solid customer service, and a range of cards for various credit profiles.
- PenFed Credit Union — open to the general public but has deep roots serving military members.
- Armed Forces Bank — operates on military bases and serves veterans directly.
If you're a Navy Fed, USAA, or PenFed member, that's typically the best place to start.
SCRA and Veteran Benefits That Can Help
The Servicemembers Civil Relief Act caps certain interest rates at 6% on debts incurred before active duty. While SCRA is for active-duty service, some banks voluntarily extend benefits to veterans. Examples include:
- Chase Military Benefits: annual fee waivers on many Chase cards.
- American Express Military Benefits: waives annual fees, including on premium cards.
- Bank of America Military Benefits: reduced APR and fee waivers on some cards.
- Wells Fargo Military Benefits: limited fee waivers and lower APRs for qualifying accounts.
- Discover Military Benefits: waives annual fees and caps APR at 4% on eligible balances for qualifying servicemembers — see our Discover card military benefits guide for the full perk list and how to request the reductions.
Call the issuer directly and ask what military and veteran benefits apply to your account. Many aren't advertised on the website.
The Best Card Picks for Disabled Veterans
No single card is best for every veteran, but these are strong starting points:
- Navy Federal cashRewards — 1.75% cash back for Navy Fed members; no annual fee.
- USAA Preferred Cash Rewards Visa — simple 1.5% cash back and military-friendly support.
- American Express Gold Card — premium rewards with annual fee waived under military benefits.
- Chase Sapphire Preferred — great travel rewards with fees waived under military benefits.
- Capital One Platinum Secured — an easy entry point if you're rebuilding and don't qualify elsewhere.
Start with what you can qualify for, not what looks the shiniest.
What to Do If You Have Bad or Limited Credit
If your credit needs work, use a secured credit card first. Pay the statement balance in full each month, keep utilization low, and build a record of on-time payments. After six to twelve months, you'll qualify for the cards above with much better terms.
Learn more about credit cards for veterans and options for credit repair for veterans.
Frequently Asked Questions
Do VA benefits count as income for a credit card application? Yes. Federal law (the Truth in Lending Act) requires card issuers to accept all regular income sources, including VA disability, pension, Social Security, and earned income. Report your total annual benefits.
What's the difference between SCRA and veteran benefits? SCRA (Servicemembers Civil Relief Act) caps interest at 6% on debts incurred before active duty and applies to active-duty service members. Veteran benefits are bank-specific programs that offer fee waivers and APR reductions. Call your bank to see what veteran benefits you qualify for.
Which bank is best for disabled veterans? Navy Federal, USAA, and PenFed are the most veteran-friendly. USAA is especially known for excellent customer service. If you're not a member, Navy Fed is open to all veterans and offers competitive rates.
Can I rebuild credit as a disabled veteran on a fixed income? Yes. Start with a secured card (small deposit required) and use it responsibly. After 6-12 months, you'll qualify for better cards. Set up autopay to avoid missed payments—on-time payment history matters most.
Are there fee waivers for military members on premium credit cards? Many premium cards (American Express Gold, Chase Sapphire) offer military fee waivers. Call the issuer directly with your military status to confirm. These aren't always advertised online.
The Bottom Line
Disabled veterans have powerful tools on their side — income rules, SCRA benefits, and veteran-friendly institutions. The right credit card rewards your service and helps you build a stronger financial foundation.
