Back to search

What is the ruling on issuing an unsecured credit card with a fixed monthly fee that is waived upon timely payment, and are loyalty points (rewards for spending) for using the card Islamically permissible?

1 min readAlso available in العربية

There is no harm in using an uncovered credit card if it is free from শরী‘আ-prohibited elements. There is also no harm in exempting the client from the monthly subscription fee as a reward for their consistent payments. It is permissible for the bank to give gifts to holders of uncovered cards, because in this case, the bank is the lender, and there is no prohibition in the lender giving a gift to the borrower. As for covered cards, it is not permissible to give gifts, because the amount the client deposits in it is considered a loan from them to the bank, and a gift from the borrower to the lender is not permissible.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy