Is it permissible to transfer your balance credit card amount to another credit card offering zero interest for 6 months?

Bismillahi Ta’ala

Walaikum Assalam Warahmatullah

The issue is not as simply as transferring one’s debt over to a new creditor who happen to provide a lucrative interest free coverage for 6 month. In fact, in such a case of transference of debt from one creditor to another, the interest free part of the actual loan is a secondary aspect (although still significant for consideration).

The main concern here is the fee charge by the new creditor for this transfer of debt. Review through with the service and in most cases the new creditor will charge 2-3% of the actual loan for the transfer fee. Contemporary Scholars do permit such a fee for any factual work done on the part of the creditor. However, charging it in %age indicates that the charge is more than the factual service being rendered.

Based on this within contemporary scholars some have disallowed such a transaction as the additional charge beyond the service being rendered is essentially riba. Others fuqaha have keep in mind, the ta’amul (general practice) of the market as well as the final fee being known (calculated through percentage) before the transaction actually takes place, and thus ease the rules. I personally feel that it is the former, and such percentage charge should not be encouraged, although the transaction will be valid.

However, while I opine that % fee here should not be used, the secondary consideration of a factual interest based loan from first creditor is sufficient enough to review this difference of opinion in charge free and allow such transaction. This dispensation is primarily because the action is being done to diminish and eliminate the interest from one’s loan.

Moreover, I would also encourage to make a consolidated effort to pay out this loan within 6 month so any more interest is not accrued on this loan.

Wallahu A’lam

And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi