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The question

What is the ruling on using a credit card that includes a late payment penalty clause, or dealing with an interest-based bank to obtain an electronic card that has no loans but charges fees as a percentage of the withdrawn amount?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Firstly: It is permissible to use an unsecured credit card under certain conditions: no interest or penalty for late payment should be stipulated, no excessive issuance fees beyond the actual cost should be charged, no percentage should be taken on cash withdrawals (only actual service charges are permissible), and it should not be used to purchase gold, silver, or currencies. As for the secured card, there is no objection to it, even if its fees exceed the actual cost.

Secondly: If an Islamic credit card free from prohibitions is not available, it is permissible to use a secured card issued by a usurious bank. This is because the harm of assisting a usurious bank — with the contract itself being sound — is less severe than the harm of signing a usurious contract, especially since an individual might delay payment and be forced to pay usury. This harm becomes even less severe if Islamic banks in the questioner's country invest customers' funds in usurious bonds.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
16703
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy