What is the ruling on using the "Mubarak Plus Signature" credit card from the Arab National Bank, which is based on Islamic Tawarruq, given that there are annual fees that are waived on condition of usage, and a late payment penalty, and does the Sharia Committee permit it?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The permissibility of using a credit card is conditioned upon its freedom from prohibitions, including the absence of a stipulated interest or penalty in case of delayed payment. Since the aforementioned card imposes a late payment fee (penalty for delay) of 100 riyals for each month of delay, this is not permissible. Dr. Muhammad Al-Osaimi has clarified that imposing an increase in monthly fees beyond the actual cost is usury (riba), and similarly, imposing a late payment fee is a form of usury strictly forbidden by the Quran.
Summarized from the full answer at Ftawy · imported
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