is it permissible if payments are paid on time and no interest is acrrued. org » Ssing haram money to pay off debts. In the answer to question No. Bad smell is disliked whereas Harming other Muslims is Haram. They are legally viewed as being gifts. Question: Can i use credit card in hard times instead of asking others to help for money (kharz e hasana). is it permissible? plus I was also wondering if it is halal to work in a. Answer (Fatwa: 634/588=B/1430) If you avoid the interest and misusing it, it is lawful. This is the madhab of the Malikis and Hanbalis, and the view of al-Halimi and al-Rawyani from the Shafi'is. My bank offered me to transfer cash to my current account against my credit card limit at 0% interest if returned within 12 months. They argue. Answered by Mufti Muhammad ibn Adam. However, one of his teachers, Sheikh Yusuf Talal DeLorenzo, on the same question responded that it's probably safer to avoid cards altogether. ? Please giveIn the name of Allah, the Most Gracious, the Most Merciful. Reviewed by. Answered by Mufti Muhammad ibn Adam al-Kawthari Question: I have been told that it is prohibited to have contracts that involve three parties. Answer: The rule that is distinguishes permissible playing (from the impermissible) is: that which is based on and begun on conjecture and guessing is haram, however if after it is begun, the game depends on thought and reflection such as backgammon and all that is a part of it like the dice used in it (backgammon), all of. ” And he said, “Allah is pure, and excepts nothing but the pure…” Wassalam,. The rulings about viewing members of the opposite sex are restricted to human beings. His explanation was that even if the points are permissible and you don't pay interest, it is still taking part in an industry like this. I understand that using credit card incurs interest when the withdrawn amount exceeds the amount in the person’s account with the bank as the overdraft provided by the bank is charged with interest. It is permissible for an individual to sell a gift card to someone else, provided that the restrictions issued by the commercial vendor/issuer do not prohibit selling it to a third party and prevailing custom does not prohibit such sales, since vendor-issued gift cards that entitle their holders to certain quantities of merchandise for free (or. e. Amin. And Allah Ta’āla Knows Best. Even if you think you’re being smart and paying your credit card balance. If customer chooses to pay by debit / credit card, a 2% service fee is added to the invoice to cover the bank commission fee charged to seller. The purchasing of food or any other commodity by credit card will be Halaal and permissible. Interest paid at or lower than the rate of inflation can be seen as paying back the true value of the loan. Hanafi Fiqh. Now I am paying 1300 aed every month but the gold is already with me. therefore I don’t. In such a case, your forbidding is directed only to those elements. (Surah al-Hajj, 78). If I win a prize, will this be halal or haram? Please note that I don't pay interest on my card i. And Allah knows best. Answer Yes, it is permissible to use a credit card facility. And Allah is the giver of success and facilitation. Mufti Ebrahim Desai Original Source Link. Credit. what is an order in shariya Bank debit card. Debit / Credit Card. While the criteria of major/minor sins was dealt with by all four schools of jurisprudence, the distinction between unlawful (haram) and prohibitively disliked (makruh tahriman) is one specific to the Hanafis. But if the credit card is not Islamically acceptable, then it is not permissible to use it at all. As a general rule, selling insurance and working in a conventional insurance companies is haram in Islam. Question: Assalam alaykum. With regard to the validity of this Hajj, it is valid even if the money with which one does Hajj is haram , but it is not a proper Hajj. However, if entry into a game show is free and no fee is demanded, it would not constitute gambling, hence permitted. Answer. Debit / Credit Card. what is worrying is that they offer. Any haram work shall not turn lawful after agreement. A local bank issues prepaid debit cards in such a way that if the initial deposit is less than 100 Eur, then the setup fee will be 5 Eur. The only justification for having one would. Is payment of this balance transfer fee halal or haram?Assalam o alekum, I know that banking business and credit cards are haram due to involvement of RIBA, interest, is it permissible to have credit card and taking monetary benefits from them like points system, someone uses credit card and get points and those points will be paid back as cash, this is an incentive to use credit card more. However, a credit card holder should ensure that deposits are made on time to avoid paying interest. Some let you convert it to points and rewards. Interest is clearly Haram. The distinction comes from the extraction – the scholars consider that natural rennet can in no way be virtually purified. There is much debate on whether credit cards are halal or haram. To answer that question, we breakdown Halal trading principles across forex, stocks, CFDs and cryptos. But similarly, you can call. Games that rely on luck, conjecture and guessing are regarded as haraam by a number of fuqaha’, by analogy with dice games. Home » Hanafi Fiqh » DarulIftaBirmingham » Will My Friends Umrah Be Valid if He Used a Credit Card to Fund His It. Both singing and dancing are Haraam. Whether or not the act of borrowing money through a credit card or loan is haram based on the potential for interest payments depends on the school of thought you follow. They offer convenience, security, and enable us to make transactions swiftly in. Answer (Fatwa: 634/588=B/1430) If you avoid the interest and misusing it, it is lawful. Why Interest is Haram “O you who believe! Fear Allah and give up what remains [due to you]. Due to the above narrations, it is unlawful (haram) for men to wear any type of gold jewelery. However, some Muslims argue that CFD trading can be halal if the trade is structured in a certain way. Animals that are born and live in water are all Haram with the exception of fish. (Surah al-Baqarah, 185). Home » Hanafi Fiqh » Darulifta-Deoband. 4 Pg. But on other hand my brother said that he is working hard from morning till night so why is this haram. The points or rewards you earn from using such a card is considered a gift from the retailer to you. is it permissible if payments are paid on time and no interest is acrrued. a buyer who has traded 80 tolas silver on credit today on the understanding that it will be exchanged against 2 tolas gold after a month has in fact no means to find in advance that 40 tolas silver. Answered by Ustadh Tabraze Azam. Is Cashback Halal Hanafi. Hope this. I don’t use this card anymore, I just want to get rid of it as soon as possible, therefore, apart from taking some for food, petrol, and bills, I transfer the rest of my wages to pay my credit card. comQ: A few months ago, a technology company that makes and profits off smartphones and other devices (Apple) partnered with a US bank to offer a credit card. The basic principle is that debts are deducted from wealth, and if the remainder is still above the nisab threshold, zakat is payable, otherwise not. The points or rewards you earn from using such a card is considered a gift from the retailer to you. The first being interest and the second being gambling. This is usually associated with a balance transfer fee of 3% or 5% on the amount of the balance which is transferred. Gambling is unlawful and haram in Islam. 2. However, a credit card holder should ensure that deposits are made on time to avoid paying interest. Q: Can we use discount on bank cards (credit and debit) offered by resturants and shops?A: It is permissible. Q: I want your fatwa regarding the use of debit card. “As it is haram to hold credit cards (As they are charging on transaction) is it OK to use other person credit card and in turn pay? As many times there is need to do on line transaction 1. Yes, credit card is considered halal and permissible to use it if it is free of the following reservations: Stipulation of interest or a penalty to be paid in the event of late payment. I develop or involved is used by the Bank to open account on-line through internet,applying on-line application for credit card, to view the Interest rates on internet for checking account, saving account and fixed deposits, etc. This interest includes the annual subscription fee and other charges that must be paid even if the user pays on time. (Fatwa: 1879/1755=D/1429) It is allowable to use credit card, if the debt is paid before the interest is levied then it is lawful. So not everybody's life is the same. They will still charge you late fees according to their scale (which they don’t say). ” (al-Hidaya, Kitab. I don’t use this card anymore, I just want to get rid of it as soon as possible, therefore, apart from taking some for food, petrol, and bills, I transfer the rest of my wages to pay my credit card. Q: Can we use discount on bank cards (credit and debit) offered by resturants and shops?A: It is permissible. Do note though that you will have to pay an admin fee to get access to this interest-free loan. Islam is a way of life that seeks to protect the human being from financial harm through prohibiting riba, maysir, and gharar. b) The reason for this stern reprimand is that chess consists of miniature idols (pawns, bishops, queen, etc. Answered by:Mufti Ebrahim Salejee (IsipingAnswered by Shaykh Faraz Rabbani My mother forgot to pay the credit card bill on time, and now there's an amount of interest she has to pay. This is really an incentive program operated by Credit Card Companies to encourage use of the card by the card holders. So the statement makes the mortgage lawful. The new account offers many new features which come hand in hand with the upgrade such as, student discounts on flights, shopping vouchers, etc. Because riba-based money is not permissible for you, you have no right to take any more than the capital, and you. Essentially, the Credit card will be charged with a certain amount at a fixed percentage per annum in such a way that the EMI will be Rs 20664 for a 3-month tenure and Rs 10332 for a 6-month tenure. Subliminal messages making the intermingling with the opposite gender seem normal. When calculating the zakat due on my wealth, reading the Seekers Guidance answer, I believe […] According to him this is considered a gift so it is permissible. I pray you are well. Islamic law prohibits usury, which is the charging of interest on a loan. We also try to identify the. Ultimately, it is up to the individual to make the decision on what they believe is. وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا Hence in difficult times too if it is possible toChess is haram by consensus if it involves gambling or some other haram act, such as neglecting prayer or causing harm. In the name of Allah, Most Gracious, Most Merciful . Otherwise it is permissible. No menu itemsHome » Hanafi Fiqh » DarulUloomTT. Shaykh Faraz Rabbani spent ten years studying. In some cases, banks allow. However, it is halal and permissible to use credit cards that do not include. is it permissible? plus I was also wondering if it is halal to work in a. I have a question regarding the issue of balance transfers at 0% APR which are offered by some credit card companies in order to delay payments for up to 12 months. Mufti Sohail ibn Arif, In light of the explainations given for the above, we also concur with these verdicts and state that it will be allowed for a Muslim to use a credit card on the condition that he saves himself from interest, by paying the fixed amount within the specified time. Consider the following: Music. Conclusion. Some of them are of the view that the amount charged by the card-issuing company to the shopkeeper is analogous interest. Assume the zakatable-minimum (nisab) is $2000. Why is interest haram? Riba (which means adding something extra to certain products, like selling gold for gold, or by not receiving something when a contract is signed, or paying extra in return for extension of a loan) is haram because Allah - Who rules as He wills - has forbidden it. All types of fishes are Halal, with the exception of that which dies naturally in the sea without any external cause. It seems likely to me it’s likely Haram. I used my indian credit card to buy car insurance in the UK for 68 pounds. My credit card company has launched a campaign that if I you use my credit card during a certain period of time (once or more) it will enable… Using credit card; Credit Cards and Contracts Involving Three Parties Is it haram to use credit cards? What are Islamic laws concerning the use of credit cards? Credit Card Cash-Backs1. Accepting such a refund or deduction doesn’t affect the reward of one’s zakat or charity. The blockchain is simply a way to store chunks of data in (digital) blocks which are distributed between thousands of computers. Muslims are instructed to abstain from alcohol, which is detrimental to physical and. This means that one has the financial means to do so, and. Q. Using Zakaat funds to pay off the debts of an estate; RE: Charity with borrowed money. October 29,. As the card holder purchases items, the store redeems the money from the advance payment. Is it haram to use credit cards? Interest charged on a cash withdrawal from a credit card; My credit card company has launched a campaign that if I you use my credit card during a certain period of time (once or. A hedge fund is basically a fancy name for an investment partnership. The following list summarizes a research paper by Mufti Muhammad Taqi Usmani’, which describes his point of view. This is, first, because e-money has its own cost and revenue structures, depending on different business models; and secondly, because customers tend to switch away from existing payment methods only. But alhamdulaillah I am earing 6500 aed. now company give us inssuerance card. -The prayer in Masjid-ul-Haram is 100,000 times superior to a prayer in any other place. Using credit card for purchase and other things is allowable when there is amount available in the account of the card holder; so that the bank can receive its debts. facelites of this card is when we go to hospita for any kinds of treatment we must. 2. Those who need the credit card. الجواب و بالله التوفيق. Home » Hanafi Fiqh » Askimam. It does not store any personal data. For any additional future deposit there’s no such fee. com. Alcohol is believed to cloud one’s judgment and lead to undesirable consequences, such as loss of self-control and impaired decision-making. The best way of using these cards is to open an account wherefrom all the amounts owing are debited to avoid the possibility of default which may carry the risk of interest. Q: Is it permissible to use a credit card facility? A: Yes, it is permissible to use a credit card facility. Answered as per Hanafi Fiqh by Darulifta-Deoband. com » My friend is in need of a debit card (interest free transactions)…but for him to obtain this he must upgrade to a new account. I know interest is haram so I pay back within days and never had any interest paidConsumption of Alcohol. Q: My question is regarding the bonds that can be acquired from the state bank of the country and used as an investment tool by different people. November 19, 2023. com » Is it allowed to use someone else’s credit card for transaction? Related Q&A. However, if a fish was to die due to some external cause such as cold, heat, being thrown to the shore by the water, colliding with a stone. And Allah Ta'ala (الله تعالى) knows best. Bitcoin and cryptocurrency trading for beginners 2021. They say that it is equal to discounting a bill of exchange, hence not allowed in Shariah. It does not store any personal data. Health risks to mothers and children. Puzzles and crosswords of permissible content are permitted to make and play. Student loans are haram for three key reasons: Student loan interest is higher than the rate of inflation. Any profits gained from the company which trades in impermissible goods is haram income, which you must dispose of by giving it to the poor. With respect to the bonus points (vouchers), it is ok to use since it is not interest (Riba). e 1%) and travel reward points from credit card companies? Answer: assalamu alaykum These are permitted as leading scholars, such as Mufti Taqi Usmani, have stated. [Maydani, al Lubab]Videogames contain many other aspects which clash against Islamic values. Conditions for a Halal Investment. Bismillah hir-Rahman nir-Rahim ! (Fatwa: 1259/760/=1432) Interest based dealings are haram as per the holy Quran. In our increasingly digitalized world, credit cards have become nearly indispensable. November 19, 2023. late payment of an outstanding balance. Bonds are indeed haram. i am working in a call centre in mumbai , my job requires to call the clients in uk , who have purchased credit card from our company ,we have to collect the amount by calling them ,as the clients dont pay the amount before due date , so the company charges them with interst on their credit card ,so we have to call the customers to remind them about the money. It is not permissible to receive interest from the share of a Muslim. My family has a car business and they have an overdraft in the bank and mortgage properties and buy and sell cars based on. makruh = disapproved/dislike (Don't eat get pahala eat get nothing). 2. and Allah Ta’ala Knows Best . The money that you are going to take after five years will be composed of the capital – which is the money paid by the company – and the riba-based profits – which are known as interest. 2. authentic Bank business child children Companions country Divorce Dua evidence fardh Fast Fasting fiqh friends ghusl Hadith hair Hajj Hanafi hands haraam income Interest job Knowledge making Marriage. org » Converting total bill of shopping into monthly. Home » Hanafi Fiqh » Askimam. Home » Hanafi Fiqh » DarulIftaBirmingham » Interest free credit card. What Is Cryptocurrency 2. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. In some cases, banks allow. Cash. 4. Some people purchase shares for the purpose of investment, hence their main aim is to. I want to confirm that these rewards points after redemption provide us gift vouchers so can these vouchers be taken into personal use? In the name of Allah, the. Answer ID: 32972. Included ghost or serial killer must have sex scene. So, in summary, cryptocurrencies are virtual. He returned to Canada in 2007, where he founded SeekersGuidance in order to meet the urgent need to spread Islamic. Dr. Halal or Haram? If haram Why expalin please in the light of quran and hadith Wasalam. The reason why credit cards are haram is that they involve interest. It is permissible to pay an annual fee for the service of having a credit card. One has the firm resolve and ability to pay the amount before the accruing of interest; and. Dubai Islamic Bank Senior Sukuk. However, the use of debit card withdraws amount only upto the amount present in the persons. Drawing anything that does not have life in it will be permissible. A: There is no objection to receiving interest from the shares of non-Muslims. If you use a credit card which uses interest to buy food and other household items, do these items become haram, forA: If the cards you are referring to are bicycle cards, then generally people gamble with these cards. After the 180 day period they will cancel your card and allocate your your deposit to your ramaining deposit. Your Job Is Halal. Asalam OAlekum I have a credit card which I used for home shopping such as groceries etc. And, if there is no balance in the account to pay to the creditor then the credit card should be used keeping this thing in mind that the issued bills are paid within their period so that they incur no interest, since paying interest on credit is also Haram (sternly prohibited). The relationship between the issuer and the client-covered type- is one in which the former is authorized to pay off on behalf of the latter. Whereas his food is haram, his drink is haram, and his clothes are haram and his nourishment is haram (i. All evidence provided is from the Quran and authentic (sahih) hadith. Your job is halal, and so is the money you have earned from it. However, some Islamic banks offer. Interest paid at or lower than the rate of inflation can be seen as paying back the true value of the loan. I used my indian credit card to buy car insurance in the UK for 68 pounds. Either way, If you pay off your credit cards you won’t be charged anything. Islamic credit card is one of the alternative banking products. Whoever engages in interest has waged war. Car financing can only be halal if the financing is interest-free and ensures that the person getting the money uses it widely. This is usually associated with a balance transfer fee of 3% or 5% on the amount of the balance which is transferred. Fact checked by. Gambling is unlawful and haram in Islam. Gold is Haram whether it is white or yellow. A statement of the Islamic Fiqh Council about credit cards says: It is permissible for the issuing bank to take commission from the company that accepts this card and sells on that basis, provided that the company sells the product by credit card for the same amount as it sells if for cash. It is haram according to the Quran and Sunnah (prophetic teachings) and the consensus of the Muslims, and a stern warning is issued to the one who does this. We also try to identify the. I have a question regarding the issue of balance transfers at 0% APR which are offered by some credit card companies in order to delay payments for up to 12 months. On that card I had bought many things, including Islamic books, and other stuff. Assalaamu `alaykum waRahmatullahi Wabarakatoh . Answer. 11179 we have discussed the prohibition on credit loans and explained that they are a form of riba. Some Muslims believe that playing the piano is Haram (forbidden) as it is considered a form of music and therefore considered to be entertainment. I don’t have much savings. The first group of scholars suggest that it is totally haram to have a credit card (that involves interest). In the answer to question No. You must return the amount if they tell you you are not eligible for the payments. , Using foul language, etc. Example: if the mobile price is Rupees 6000Than he has to. I understand that using credit card incurs interest when the withdrawn amount exceeds the amount in the person’s account with the bank as the overdraft provided by the bank is charged with interest. 3) It is haram to purchase gold and/or. Accepting payment through credit cards which are not allowed. A charge card is permissible to use just like a credit card if you are confident of paying off the balance before any additional charges accrue. isn’t yet known. Answer. Answered by Mufti Muhammad ibn Adam al-Kawthari Question: Is it permissible to purchase shares with the intention of capital gain? Answer: In the Name of Allah, Most Merciful Shares from the stock market are generally purchased for two reasons. It is also permissible for you to follow any of the other well-known madhhabs and views of the prominent scholars. At times no fee is charged for participation, but the charge. and Allah. Ustadh Tabraze Azam holds a BSc in Computer Science from the University of Leicester, where he also served as the President of the Islamic Society. Title: Can i use credit card in hard times instead of asking others to help for money (kharz e hasana). A: Rasulullah (Sallallaahu Alayhi Wasallam) said, ‘Whosoever plays chess, it is as though he soiled his hands in the blood of swine. Therefore, it is permissible for the issuer to receive a fee against the card. When that is possible, you should resign from your current job. His explanation was that you can’t benefit / profit yourself against something that is hidden, i. Despite the claims of many religious organisations and Islamic academics, some Islamic scholars believe that bitcoins are halal, while others believe as haram. org » I know that receiving interest is not pemissible,. In this article, we will discuss the factors that contribute to bonds being haram so that you may never get caught in the ways of haram income. 2. 2) A cardholder benefit offered by some credit card companies that pays the cardholder a small percentage of their net expenditures (purchases less refunds). The Legal Verdict on Prevalent Forms of Insurance. But if the credit card is not Islamically acceptable, then it is not permissible to use it at all. said, “Whoever eats from the haram, the Fire is more deserving of them. ” [Sûrah al-Baqarah: 279] Paying interest is sinful, just like receiving interest is sinful. Is it Ok to use non muslim friend credit card for transaction?” Answer (Fatwa: 1304/1044=L/1430) Answer In the name of Allāh, Most Gracious, Most Merciful Assalāmu ῾alaykum wa Rahmatullāhi Wabarakātuh The use of a credit card is allowed in the Shariah, regardless of whether the card is issued by a banking institution or some other company, subject to the condition that a person does not involve himself in interest. Ultimately, it is up to the individual Muslim to decide what they believe is right or. Unlike credit cards, a. Either way, If you pay off your credit cards you won’t be charged anything. This transaction is nowadays being used by many Islamic banks for liquidity management and as a mode of financing especially for personal financing and credit cards. Home » Hanafi Fiqh » Askimam. It is stated in al-Fatawa al-Hindiyya (a major Hanafi Fiqh reference):A mortgage is a haram riba-based transaction that is based on a loan with interest in which the owner of the money takes as collateral the property for the purchase of which the borrower is taking out the loan, until the debt has been paid off along with the interest (riba). In many cases, car financing can be enjoyed by Muslims if the shari’ah. interpretation of Sharia law have enabled products to emerge. A credit card is a loan offered by a credit card company to the cardholder. I pray you are well. But, it will be haram if played with betting money: قال فی رد المحتار: کرہ تحریما اللعب بالنرد وکذا الشطرنج ۔۔۔Please explain why. (2) In case of delay the two percentage which one has to pay as penalty is interest and thus unlawful. If one owns 40% of shares in a company, then how is Zakaat calculated on his share? My question is regarding a credit card. However, some other scholars are of the opinion that it is not interest. "As it is haram to hold credit cards (As they are charging on transaction) is it OK to use other person credit card and in turn pay? As many times there is need to do on line transaction 1. Answer (Fatwa: 109/103=B/1429) If visa is not obtained or renewed without having a healthsalaamo alaikum respctd muftisaab, is it allowed to use credit cards if i am not paying any intrest. This is because they’re usually based on spending more money, which leads to debt and interest. A local bank issues prepaid debit cards in such a way that if the initial deposit is less than 100 Eur, then the setup fee will be 5 Eur. Praise be to Allah. It is important to note that the use of credit cards is only permitted when there is a need to do so, on the condition that a person is certain he. In modern terms, an ‘Insurance contract is an agreement whereby one party, the insurer, in return for a consideration, the premium, undertakes to pay to the other party, the insured, a sum of money or its equivalent in kind, on the happening of a specified event, which is contrary to the insured’s financial interest’. Hanafi madhab, or Hanafite/Hanafi fiqh, is based on the work of Imam Abu Hanifa, who lived in the late 700s C. It does not store any personal data. He explains how the prohibition of riba came—in four stages, in four sets of verses, with increasing degrees of emphasis. Student Darul Iftaa Melbourne, Australia Checked and Approved by, Mufti Ebrahim Desai. Fact checked by. com » Delays in Making Credit Card Payments. And Allah knows best. Now I am paying 1300 aed every month but the gold is already with me. This is considered to be Riba and is considered prohibited in Islam. by quranmualim. Cash back rewards are actual cash that can be applied to a credit card bill or received as a check or bank account deposit. A group of contemporary scholars has an unfavourable opinion on credit card operations. They are legally viewed as being gifts. Answer. The best way of using these cards is to open an account wherefrom all the amounts owing are debited to avoid the possibility of default which may carry the risk of interest. Because of the nature of things, the fuqaha of our age allowed putting money in accounts that accrue interest only if there is no reasonable availability of accounts that do not accrue interest. Credit Cards. Alcohol is believed to cloud one’s judgment and lead to undesirable consequences, such as loss of self-control and impaired decision-making. In the Name of Allah, the Most Merciful and Compassionate. MENU MENU. Some Hanafi scholars may say that playing the piano is permissible, while others may say that it is not allowed. in our work agreement company must be provide us all kinds of medical treatment but it is not clear how will provide it is cash money or inssurence card. Answered by Ustadh Salman Younas Question: Is it allowed for us to receive incentives such as cash back (I. 5 Eur. ’ (Nasbur-Raayah Vol. It would also be permissible for you. customers to delay the payment of their outstanding balance. For instance, payment through credit cards, setting of un-prescribed service charges, imposes non-refundable bidding fees, impersonation, fraudulence, ambiguity, and inflation all are not in. The Shafi’i school allows tambourines and long, double-sided drums which are the same throughout. It is for this reason that the fee is fixed irrespective of whether the credit card is used or not and the extent to which it is used. A. com » Delays in Making Credit Card Payments. He intends to fund his Umrah trip for Ramadan with his credit card, so the funds are not “haram”, but then intends to pay off the amount owed on his credit card with his loan, however, he will have paid interest on the. This means that one has the financial means to do so, and one’s. Interest is clearly Haram. Q. But, I pay back quickly and never had any interest paid until now. The annual fee is charged by the credit card company in exchange of the services it provides. Scenario: We usually avail discounts in restaurants by using specific debit/ Credit cards which is offered by several outlets in town. 5 Eur. This is usually associated with a balance transfer fee of 3% or 5% on the amount ofI pray this question finds you in good health and Iman. And Allah knows best ————————————– Mufti Abubakr KaroliaAnswer. Spending of ludicrous amounts of time. I pray this question finds you in good health and Iman. And Allah the Almighty knows best. Source. Assalam-o-Alaikum, To simplify my understanding please let me know if I got this right, 1) Debit cards are OK. deducting a percentage for withdrawal when the Visa card is not loaded; it is permissible to charge the actual cost only, and anything more than that comes under the heading of riba; 4. 2) Ulamaa’ have allowed the use of credit cards due to the need as long as you make your credit card payments on time. I have purchased gold using a credit card. Dr. The truth is, Muslims and non-Muslims are very much alike in issues of debt – except that ribaa [interest] has been made haram (and not just haram, but “ haram haram “) for us, so the issue is compounded greatly. Key Takeaway: Credit cards give credit cardholders the ability to borrow funds for purchases up to the credit card’s limit. The default is that it is haram for a Muslim to have any kind of dealings with interest . Muslims are not permitted to celebrate Christmas or any other religious festival. The idea that when you sign the credit card application you’re agreeeing to pay interest and therefore is haram doesn’t make sense. But, as Muslims, we must first ask ourselves if it is haram to celebrate Christmas in Islam. It's haraam to be party to a contract that involves interest, as you are obliging yourself to possibly perform an unlawful action even if you believe you won't do so.