The Military Lending Act and How It Enables This Trick

The key to this method is leveraging the Military Lending Act (MLA), which provides service members with certain financial protections. One of the biggest perks of the MLA is that it waives annual fees on qualifying credit cards from issuers like American Express for active-duty military members.

That means you can get premium charge cards—like the American Express Gold and Platinum cards—without paying the hefty annual fees ($250 and $695, respectively). Normally, these fees eat into the value of the rewards, but for military members, it’s all upside.

Step 1: Get the Right American Express Cards

To execute this strategy, you need three key cards:

1. American Express Gold Card – Your primary spending card, earning high rewards on everyday purchases. Use the referral code below to get $600.00 worth of welcome bonus points.
   • https://americanexpress.com/en-us/referral/gold-card?ref=MICHAHx7G9&xl=cp15
2. American Express Platinum Card – A premium travel and benefits card, also fee-waived under the MLA. Use the referral code below to get $800.00 worth of welcome bonus points.
   • https://americanexpress.com/en-us/referral/platinum-card?ref=MICHAHeK4D&xl=cp15
3. American Express Platinum Card by Charles Schwab – The secret weapon that allows you to convert Amex Membership Rewards points directly into cash or investments. Apply for the AMEX Charles Schwab through them.
   • Open your Charles Schwab Investment account here and you could earn up to $1000 when you fund your account.
     https://www.schwab.com/client-referral?refrid=REFER6Y4F7ZQJ

Step 2: Earn Big Rewards on Everyday Spending

Use your Amex Gold Card for your regular expenses, especially in its high-reward categories:

• 4X points on groceries (including the commissary)
• 4X points on dining (both on and off base)
• 3X points on gas (using the Amex Platinum instead, which is better for travel and gas perks)
• 1X points on all other purchases

Since you’re spending money on essentials anyway, you’re not changing your habits—just optimizing them.

Step 3: Pay Your Bill Automatically

Set up autopay from your checking account so that every month your statement balance is paid in full. This ensures:

• No interest charges (Amex charge cards require full payment)
• No risk of carrying debt
• Continuous earning of points on every purchase

For example, let’s say you spend $400 on groceries per month. That’s 1,600 Amex Membership Rewards points per month, or 19,200 points per year, just from groceries!

Step 4: Transfer Points to Your Schwab Platinum Card

Here’s where the Schwab Platinum Card becomes a game changer. This card lets you redeem Amex Membership Rewards points directly into your Charles Schwab brokerage account at a rate of 1.1 cents per point.

Let’s break this down:

• If you earn 50,000 points in a year from normal spending, you can convert that into $550 cash in your Schwab brokerage account.
• The best part? No fees, no extra spending required!

Step 5: Invest or Withdraw the Money

Now you have two options:

1. Withdraw the cash and spend it however you want.
2. Invest it for long-term wealth—this is the smart move!
   • Buy VOO (S&P 500 ETF) or VTI (Total Stock Market ETF).
   • Let that money grow compounded over time.
   • Repeat this cycle every year and watch your investments grow while spending the same way you always have!

The Best Part? It Costs You Nothing!

If you’re in the military, this strategy is completely free because: ✅ You pay no annual fees on these premium cards. ✅ You earn points on regular spending (groceries, dining, gas, etc.). ✅ You redeem points for real money and invest it. ✅ You increase your income without extra effort.

This is one of the best financial hacks available to service members, and most people don’t take advantage of it. So now that you know, why not start earning free money today?

As Always,
Michael @ Military.Cash

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**Disclosure: This isn’t financial advice, just information you can utilize to optimize your personal finances over time. Finances are just that – personal. Your individual behaviors and personal financial choices are just that – yours. If you can’t stand using credit or charge cards, this post is not for you.

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#MilitaryFinance #FinancialIndependence #FIRECommunity #MilitaryMoneyHacks #AmericanExpress #CreditCardRewards #PassiveIncome