Is it appropriate to use credit cards? A – Using the credit card is like using the modem banking system. Most of the modern banks are interest-based and Muslims have to use them because interest-free banks are not available. It is permissible to use the services of these banks without getting involved in interest. In a similar way, it is permissible to use the credit cards without getting involved in Riba. Credit cards are a convenience. They help us to charge goods and services to the card account, without carrying too much cash all the time or tying the cash to a credit purpose. These cards are now universal and are used in Muslim countries as well. The card companies make money from annual fee and from commission they take from the establishments. Some companies give their credit card free of any annual fee, because they expect that they may collect interest from those who will charge these cards and then they will pay interest on unpaid balance. However, one does not have to pay interest if one pays the card bills fully on time. There is nothing un-Islamic in using this service as long as one does not delay paying the bills and pay the total amount on time. It is indeed haraam to pay interest. However, one is allowed to use the credit cards to charge the amount that one can pay when the bill comes. But if one uses the card to borrow money on interest or to purchase for which one cannot pay on time, then one is indulging in Riba which is forbidden in Islam. – Answers by Dr. Muzammil H. Siddiqi. Dr Siddiqi is President, Fiqh Council of North America. __
