Fatwaa ID: 1101

Question:
Assalamualaikum Wa Rahmatullahi Wa Barakatahu Mufti saab,

1. Question about credit cards: If I get a credit card, there is a statement balance which of course doesn’t have interest on it and there is the full balance. When I am paying my debt off, do I have to pay
   the entire full balance or can I pay off the statement balance even though I will not be charged interest if I pay the statement balance?
2. Is it impermissible to get credit cards that have annual feee on them? And is it haram to use the rewards that are associated with those credit cards?

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

1. You may pay the statement balance or the current balance, as convenient for you. You will not incur interest charges if you choose either of the two. However, it is best to remain debt free at all times.

2a. It is permissible to get credit cards that have annual fees. The annual fees are genuine service charges.

2b. It is permissible to use the rewards offered with the credit cards. They will be regarded as incentives and gifts.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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