Ruling on Obtaining a Credit Card

الاستفتاء

My question is with regards to credit cards. I have a credit card on which the bank loans me money and charges a processing fee. For example; the bank loans 5,000 dirhams with no interest rate, which will be paid back to the bank in investments throughout the period of a year, however, 4% of the loaned amount is charged as processing fees. If I pay back the installments on time, no interest rates will be applied. Would it be permissible to take a loan in this scenario?

الجواب حامدا و مصلیا

In the name of Allah, the Beneficent, the Merciful
Obtaining and using a credit card is only permissible under the condition that client avoids making late payments so that he is not obligated to pay interest, since that would be unlawful. Furthermore, it is only permissible to obtain a cash balance on a credit card (which is a load in reality) on the condition that the client is not obligated to pay back more than the amount of the balance, since in this case, the extra amount would not be against any services provided , rather, it would be against the cash balance issued to the client, which is in reality a loan, and taking extra on the basis of a loan is interest. Nonetheless, it is permissible charge extra fees for the withdrawal of money from an ATM since this is not an interest transaction. After taking into consideration all of the aforementioned, it would be permissible for the questioner to obtain a credit card. Similarly, if the questioner takes a loan from a non-interest bank, then that would also be permissible for him.