Fatwa No : 85152
The Ruling on Using Credit Cards

The Ruling on Using Credit Cards

Respected Mufti Sahib, Assalamu Alaikum Wa Rahmatullahi Wa Barakatuh!
I am using a credit card from Al-Falah Bank, where I also have an account opened. I use the credit card for business purposes, and I always pay the bill before the due date, never withdrawing cash, but only using it for purchases. In this manner, is the use of a credit card permissible or not? I also intend to conduct business with Meezan Bank and wish to maintain a savings account there. So, are the profits from such an account lawful (halal) for me?

الجوابُ حامِدا ًو مُصلیِّا ً

Buying and selling through a credit card is permissible with the following two conditions: (1) Before obtaining the card, one should open an account and deposit the required amount in it. (2) If this is not possible, then the bills issued by the institution must be paid within the prescribed period. Therefore, in the case mentioned, although using the card in this manner is permissible, it is necessary to avoid opening an account in an interest-based bank.
It should be made clear that in the present era, Meezan Bank is operating as an Islamic bank under the supervision of esteemed scholars who are experts in modern juristic issues. According to our knowledge, the banking system practiced in this bank is based on Shari‘ah principles such as Murabahah, Musharakah, Mudarabah, and Salam, which is far better than other conventional banks and closer to the Shari‘ah. Therefore, it is permissible to deposit money in this bank and its schemes and to take profit from it. However, since it is a private institution, there remains the possibility of changes in its rules and regulations. Hence, before entering into any transaction with it, one should first thoroughly investigate its nature and then obtain the Shari‘ah ruling in accordance with it; this is more cautious and preferable.