Paying a fixed monthly fee for a credit card facility

Q: Is it permissible to pay a fixed monthly fee for a credit facility on a credit card? The fee is payable whether or not the credit facility is used. No interest will be incurred on the credit facility.

A: Outwardly, it seems that this is an additional amount for the credit provided and this resembles interest. Hence, refrain from it.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)