Reward or Loyalty Points on Credit Cards

The use of a credit card is allowed in the Shariah, regardless of whether the card is issued by a banking institution or some other company, subject to the condition that a person does not involve himself in interest.1

As such, the reward/loyalty points (redeemable for cash, permissible gifts, mileage, etc.) given by such institutions is considered hiba (a gift) and halal for you to redeem and use.2 3

However, if any reward points are given by the bank as interest on the money you deposited with them, or involve the purchase of bank products which are haram (prohibited) such as CDs, Treasuries, Mortgages, etc. then the reward points cannot be redeemed.

And Allāh Ta῾āla Knows Best
Wassalāmu ῾alaykum

 Ml. Sohail Bengali
Correspondence Iftā Student, US.

Checked and Approved by:
Mufti Ebrahim Desai
Dārul Iftā, Madrasah In῾āmiyyah

1 Contemporary Fataawa, Mufti Taqi Usmani, pages 245-246, Publisher: Idara-e-Islamiat

2        الهبة تصح بالايجاب والقبول وتتم بالقبض

            ( المختصر القدوري، كتاب الهبة، ص:١٣٠ )

3        وشرائط صحتها في الواهب العقل والبلوغ والملك 

          ( البحر الرائق شرح كنز الدقائق – كتاب الهبة )


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