Answered by Shaykh Faraz Rabbani
Is paying late fees on credit card bills allowed or is it considered riba? the full balance is paid monthly so no interest accrues … however, if the person doesn’t pay by the due date a late fee of a fixed amount is charged. is it fard to avoid paying this late fee?
Walaikum assalam,
This depends on the type of credit card you are using, and its terms.
However, the general case would be that such “late fees” are riba, and it would be sinful to delay payment such that one fall into such a problem.
Legally, it is only valid to use conventional credit cards if one:
- Is determined to pay the full balance before any interest or “late fees” accrue;
- Has the financial means to do so;
- Is reasonable sure that one will in fact be make the payments without delay, based on past experience and awareness of one’s habits and ways.
The Prophet (Allah bless him and give him peace) said, “Whoever eats from the haram, the Fire is more deserving of them.” And he said, “Allah is pure, and excepts nothing but the pure…”
Wassalam,
Faraz.