I have two questions:
- Using my credit card I purchased gifts for my in laws to express my happiness towards the new relations during my marriage proposal which was finalised by my parents. I got married and now I am paying the instalments of my credit card which I cancelled to stop using further. Is this interest and how do I repent?
- I would like to purchase a car for my necessary transportation due to not having enough money I see many companies offering cars on a monthly instalment basis but they charge extra money on instalment more than the actual price of the car on a one time cash payment. I don’t know if this extra money is termed interest or complete price fixed at the time of the deal. Please let me know if this is permissible.
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The general principle with regards to credit cards with is that it is permissible to use them as long as no interest is charged and repayments are made on time without defaulting.
If the deferred price is higher than the spot price, then it will be permissible to purchase such a car on condition the price is agreed upon at the time of contracting the sale.
And Allah Ta’āla Knows Best
Mufti Faraz Adam,
 Introduction to Islamic Finance p.76-81