Best Cash Back Cards for Military Home Buyers

Buying a home is one of the most significant financial decisions a military service member or veteran can make. With frequent relocations, housing allowances, and unique financial challenges, military homebuyers need every advantage they can get. One often-overlooked tool is the right cash back credit card, which can help offset closing costs, moving expenses, and even everyday purchases.

In today’s economy, where inflation and rising interest rates impact affordability, maximizing cash back rewards can make a real difference. This guide explores the best cash back credit cards tailored for military homebuyers, considering benefits like waived annual fees (thanks to the SCRA and MLA), high reward rates, and flexible redemption options.

Why Cash Back Cards Matter for Military Home Buyers

Military life comes with unique financial dynamics—frequent moves, unpredictable deployments, and the need for flexibility. Cash back credit cards can help in several ways:

Offset Moving and Closing Costs

From security deposits to utility setup fees, moving expenses add up quickly. A card with strong cash back rewards on everyday spending can help recoup some of these costs.

Build Credit Responsibly

A good credit score is crucial for securing a competitive mortgage rate. Using a cash back card wisely (paying balances in full, keeping utilization low) can improve credit health.

Take Advantage of Military Benefits

Many issuers waive annual fees for active-duty service members under the Servicemembers Civil Relief Act (SCRA) or Military Lending Act (MLA). This makes premium cards even more valuable.

Top Cash Back Cards for Military Home Buyers

1. Chase Freedom Unlimited®

Why It’s Great:
- 1.5% cash back on all purchases (no categories to track).
- 3% back on dining and drugstores—useful during relocations.
- No annual fee (often waived for military under SCRA/MLA).
- 0% intro APR for 15 months (helps with large purchases before PCS moves).

Best For: Service members who want simplicity and consistent rewards.

2. Blue Cash Preferred® Card from American Express

Why It’s Great:
- 6% cash back at U.S. supermarkets (up to $6,000/year, then 1%).
- 3% back on gas and transit—ideal for frequent movers.
- Annual fee often waived for active-duty military.

Best For: Families who spend heavily on groceries and gas during moves.

3. USAA Cashback Rewards Plus American Express®

Why It’s Great:
- 5% cash back on gas and military base purchases (up to $3,000/year).
- 2% back at supermarkets and 1% elsewhere.
- No annual fee and exclusive to military families.

Best For: Those who frequently shop on base or commute long distances.

4. Bank of America® Customized Cash Rewards

Why It’s Great:
- 3% cash back in a category of your choice (gas, online shopping, dining, etc.).
- 2% back at grocery stores/wholesale clubs.
- No annual fee and potential SCRA benefits.

Best For: Flexible spenders who want to customize rewards.

5. Discover it® Cash Back

Why It’s Great:
- 5% cash back in rotating categories (e.g., home improvement stores, PayPal).
- Unlimited 1% back on everything else.
- First-year cash back match—effectively doubling rewards.

Best For: Savvy spenders who track bonus categories.

How to Maximize Cash Back for Home Buying

Stack Rewards with Military Discounts

Many retailers (e.g., Lowe’s, Home Depot) offer military discounts. Pair these with a cash back card for extra savings on home supplies.

Use Rewards for Closing Costs

Some lenders allow credit card rewards to offset fees (check with your mortgage provider). Even $500–$1,000 in cash back can make a difference.

Pay Attention to SCRA/MLA Benefits

Active-duty service members can request fee waivers, interest rate caps, and other perks under federal laws. Always ask issuers!

Pitfalls to Avoid

Carrying a Balance

Cash back is negated by high-interest debt. Always pay your balance in full.

Overusing Cards Before Mortgage Approval

Lenders scrutinize new credit inquiries and debt-to-income ratios. Avoid opening multiple cards right before applying for a home loan.

Ignoring Foreign Transaction Fees

For overseas assignments, choose a card with no foreign transaction fees (e.g., USAA or Chase Sapphire cards).

Final Thoughts

The right cash back card can be a powerful tool for military homebuyers—helping save thousands during moves, build credit, and stretch budgets in a tough housing market. By leveraging military-specific benefits and smart spending strategies, service members can turn everyday purchases into meaningful savings.

Whether you’re PCSing to a new duty station or buying your forever home, these cards offer flexibility and financial leverage when it matters most.