Is one permitted to sign up for a credit card?

Carrying cash in our times has become a major risk hence many individuals prefer using a credit card for their convenience. Funds are easily available and they are accepted by most businesses worldwide. Similarly, a credit card is beneficial and useful when doing online transactions particularly when a cash payment is not an option.

On the above basis, it is permissible to sign up for a credit card if one knows with certainty that one will pay the account within 55 days or within the interest-free payment time allocated by the bank. As long as you are confident that you will prevent yourself from landing into an interest-based repayment by ensuring that you always opt for the “straight” payment option and not the “budget” option, it will be permissible for you to apply for, and use the credit card. If you are not certain and fear exceeding the interest-free payment time limit, then you shouldn’t sign up for a credit card as dealing in interest is Haraam and a major sin.