Using Credit Cards

Question

Is it permissible to use a credit card if one ensures that the balance is always positive and never goes into credit? Also, interest is paid to the cardholder because the account has money in it, but every month the amount is reversed when requested.

Mufti Zakaria Makada · Accepted Answer

The use of the credit card is permissible provided one is sure that one will pay the loan (outstanding amount) before it earns interest. In the case enquired, since interest is being paid to the cardholder, it will not be permissible as one is receiving interest, even though he asked the bank to reverse it at the end of the month.

Note: This ruling applies to the credit card for which one is not charged a monthly fee. If a monthly fee is charged for the credit facility, it will not be permissible and the monthly fee will be regarded as riba (interest).

And Allah Ta'ala (الله تعالى) knows best.

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