Using Credit Cards

By Mufti Taqi Usmani
Posted: 15 Muharram 1422, 9 April 2001

Q.) 1- If the payments of the credit card bills are made to the Credit Card company on due date, whether its use for buying will be Halal or not?

2- If the payment is some times delayed and made with additional charges, what will be the Hukm?

3- If some one draws some cash from the Cash Machines against the limit he has been assigned by the credit card company, whether the use of this cash amount will be Halal?

Abdul Rehman

(Muhtamim Ma'had Al-Faqeer Al-Islami Pakistan)

A.) 1/2. The best way to avail of the services of a credit card company is to have a direct debit arrangement with the issuer of the card. It means that as soon as an amount is due on the card holder the isssuer receives it by debiting the card holder's account with it or any other bank. This is to eliminate the chances of the accrual of any interest on the payable amount in case of delay in payment.However, if direct debit arrangement is not possible for any reason purchasing through a credit card is permissible only when the card holder is fully confident that he will pay the bill to the issuer within the due date and there is no apprehension that any interest will accrue with delay in payment.

3. Drawing cash from a cash machine provided by the credit card company is allowed if no interest is charged for the cash drawing. The company may charge some reasonable lumpsum amount for providing the services of the machines provided that it is not made an excuse for charging interest.