Title

I Have a credit card From RAK bank, UAE, the card is free of charge, and i can spent upto certain amount of money,every month on a certain date the statement for the spent amoun till that date would be generated, and within the due date

Question

Assalamu Alaikkum,My questain is regarding Credit Card,

I Have a credit card From RAK bank, UAE, the card is free of charge, and i can spent upto certain amount of money,every month on a certain date the statement for the spent amoun till that date would be generated, and within the due date

1) if i pay full amount of money which i spent, i do not have any fees or interests

2) If I make only a part payment of the full amount i would have a interset on the remaining money, which would be calculated monthly

3) If I am late for the payment than due date I would have a late payment fee,

1,2,3, which are allowed for me (Halaal)???

second part, the bank will give me 1% amount which i spent everymonth back(Cash back) if my purchases for the month is less than 10,000 Dirhams, if it is between 10,000-25000 the bank will give

me 2% of the amonut which i spent ,

Say if i spent 9000 DH on this month i will get 90 Dh back, or i spent 11,000 Dh i will get back 220 Dh,

Can I take this money, Is it halaal???

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

1.       It is permissible to use the credit card facility on condition you make payments timeously and avoid paying interest. The late payment fee is also interest.

2.       The 1% or 2% given to you by the Bank  in lieu of you spending an X amount of money is halal.

And Allah Ta'ala Knows Best

Wassalam

Mufti Ebrahim Desai
Darul Iftaa