Let’s talk about the Military Star Card for a moment. In this post, I’d like to share a few quick facts about it.
Credit… It can be a good thing and for some, but it can be a bad thing for others. If properly managed, credit cards can help a person get a good credit score, which can be quite helpful when buying a home, car or other high dollar item.
For military personnel, you may want to consider the Military Star Card. This credit card is only available to military personnel and their families.
The Military Star Card is a private-label line of credit offered by the Exchange Credit Service (ECP) and managed by the Army and Air Force Exchange Service (AAFES). It offers a 10.99 annual percentage rate, no annual fees or overage or late payment charges, and a percentage off services at certain exchange-operated businesses on base. It can be used only in exchange-operated stores. ~ Military.com
10 Facts About the Military Star Card
In the paragraphs below, I am going to give you the top 10 cool facts about this unique credit card. This post will inform you so can decide if it might be the right fit for you.
# 1: How To Apply
To apply for a Military Star Card, simply click here and follow the directions to fill out the application.
- Read the terms and conditions prior to submitting your application.
- Questions should be directed to Exchange Credit Program Contact Center at 1-877-891-7827.
# 2: Who Offers And Manages The Military Star Card
It was created by and is offered and administered by the Army and Air Force Exchange Service (AAFES).
# 3: Can The Military Star Card Be Used Anywhere?
The immediate answer is NO!
The Military Star Card can only be used at Military Post Exchanges, as well as:
- Uniform shops
- Armed Forces Recreation Center resort hotels
- Army lodging, Morale, Welfare and Recreation
- On-base Boingo Wi-Fi service subscription
- Armed Forces Network equipment (required to rent)
- On Base Gas Stations
- And on Base Mini-marts/Shoppettes
- On Base Class Six stores
- Some on-base mini-mall retailers
# 4: Cost
One of the primary questions wise people ask before they accept any credit card is, “what will it cost me to use this card?” From what I see, the costs are much lower than most:
- 10.99 annual percentage rate
- no annual fees
- no late payment charges
# 5: First Shopping Day
After receiving your credit card, the Exchange offers a special feature. On your first day of shopping using your new Military Star Card, you will get a 10% discount on everything.
# 6: Points
For every $1 you spend using the Star Card, you will earn 2 points. Once you reach 2,000 points, you will receive a $20 Post Exchange gift card.
# 7: Tracking
The wise person keeps close track of credit purchases and payments. Plus, the Military Star Card gives you an easy way to do so all on your smartphone. Just download the Military Star Mobile App from either
You can keep track of everything and know what rewards you are close to getting.
# 8: Military Clothing
There is no interest rate when using the Military Star Card to purchase military clothing and accessories.
# 9: Deployment Special Feature
While deployed, you are not required to make monthly payments and the interest rate will drop to 6%.
# 10: Monthly Payments
Your monthly payment will be the greater of 2.777% of the unpaid balance, or $10. For purchases under the Military Clothing Plan, the minimum payment will be 12.5% of the unpaid balance.
There is a penalty rate of 20.24%. The penalty rate applies if you do not pay the full amount of any total minimum payment due within 60 days of the due date, and will apply until you make six consecutive on-time payments thereafter.
“If you don’t take good care of your credit, then your credit won’t take good care of you.” ~
Disadvantages of the Military Star Card
No credit card or credit program is perfect. Here are a few disadvantages we found for the Military Star Card on another website.
- The card will be terminated once you leave active duty military service.
- Rewards points are accumulated at select locations and may not be earned on all purchases made.
- As is the case with all credit cards, loans, and credit lines, late payments made on the MILITARY STAR Card will have a negative impact on your credit and credit score.
- Approval isn’t automatic. Bad credit could result in your application being denied.
Source: The Military Wallet
My advice to you, although I am not a financial planner, is to be smart about your debt. If you are going to use credit cards, which is perfectly fine, compare at least three different credit card companies. Find out what the interest rates are for each one, and pick the one that is best for you.
In addition, compare rates every couple of years. If you find a credit card with a better interest rate than what you are currently paying, contact your current credit card company and see if they will match it. If they won’t, consider switching to the new credit card company with the better rates.
Whenever possible, try to pay off your balance in full each month. This will save you a ton of money in interest charges. If you can’t afford to do that, pay it off as quickly as you can. And, if you know you do not have the discipline to be smart with your money and debt, I would consider avoiding credit cards altogether.
In 2020, authorized exchange and commissary shoppers who used the MILITARY STAR card—available exclusively to military members, retirees, Veterans and military dependents—saved the military community $28.7 million in banking transaction fees. ~ United States Navy
In review, there are many benefits that Military Star Card members receive. It will help your credit, plus…
- Exclusive Exchange offers promotions for purchases made with the Star Card such as sweepstakes, discounts, 0% interest and more
- Five cents per gallon fuel discount (military installation gas stations)
- 10% food court discount
- Money saved from merchant fees is re-invested into military installation programs and services
Overall, this seems to be a great credit opportunity for military personnel.
On a side note, have you used the Military Star Card before? Let’s hear your thoughts and opinion. You can post them in the comment section below. I look forward to hearing from you.
When I was young, people lived from paycheck to paycheck. Today, it seems like they live from credit card payment to credit card payment.
~ Robert Kiyosaki
Disclaimer: We are in no way affiliated with the Military Star Card. This information is for educational purposes only and is not to be construed as financial advice.