Using a credit card and paying Riba

24-4-2000 | IslamWeb

Question:

I have a Master Card (credit card) and the practice is to deduct every amount I use in three months (33% each month ). Is that halal or Haram (Riba)?

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

This transaction is forbidden as it is taking a loan with Riba (usury and/or interest) and this is forbidden according to the consensus of the scholars.

The Riba in this transaction is that you borrow an amount of money to fulfill your needs and then you are asked to pay it back with some interest if there is delay in repayment. Indeed, any loan that includes giving interest is a loan with Riba and it is forbidden.

Allah knows best.