Fatwa ID: 02143
Answered by Ustaadha Bint Salih
I will be using a credit card to fund my trip for Umrah. I will be doing a balance transfer from my credit card to my bank account, and then paying the party responsible for organising everything. I will have to pay 3-5% of the amount being transferred into my account.
My questions are as follows:
* Is paying the balance transfer permissible?
* Is using a credit card to fund my Umrah trip, permissible? I have every intention of paying everything back before interest starts kicking in.
* If the answer to the above question it is not permissible, will the Umrah itself still be valid, and not MAKRUH?
A ‘Balance Transfer’ to your account involves the bank or company paying you a lump sum of money in the form of a loan which if paid before a set date will not involve interest. Often a small percentage is charged as an admin or settlement fee.
To take this offer would be lawful as long as it is paid off before the due term, thus avoiding the paying of interest.
Using a credit card to fund an Umrah trip will also be valid. However, you must make sure the amount is paid off before interest is charged, otherwise the money will not be halal and the umrah would not be valid.
Mufti TaqiUsmani (DB) has said, “Credit cards have become a necessity without which many transactions cannot be made; therefore it will be permissible to use them on the condition that the payments are made before the due date to avoid interest.
Only Allah knows best.
Ustaadha Bint Salih.
Checked and approved by Mufti Mohammed Tosir Miah