Is using a credit card permissible?

“The monthly fee which the bank charges the credit card holder is not permissible. This amount is riba (interest). One is paying the bank this monthly fee in order to keep this credit facility open to him to qualify for credit loans whenever he requires.”

“A credit card represents a loan offered by a credit card company to the cardholder. If the loan is not paid timeously, the credit card holder is charged interest. Interest is clearly Haram.”

“In light of Shari’ah, placing a credit card facility in one’s business so that the customers can make pay for their purchases, will be permissible. In today’s society, where robberies and hijackings are rampant, many people avoid keeping too much cash on person.”

“Your question is not too clear to us. We understand the usage of credit cards as follows; the card holder uses the card to make purchases and is given a 55 day, interest-free period to settle the account. If he pays the balance on the card within 55 days via EFT, then he is not charged interest or a cash deposit fee.”