Ruling on Mubaarak credit cards
Question

                What is the ruling on Mubaarak credit cards from the National Arab Bank?.
Praise be to Allah.There is nothing wrong with 
    using credit cards that are free of the following shar’i reservations: 
1 – Stipulating that 
    interest or a penalty be paid in the event of late payment. 
2 – Taking a percentage of 
    withdrawals if the credit card is not covered. It is permissible to take a 
    set fee for work only; anything more than that is riba. 
3 – Buying gold, silver and 
    currency with a card that is not covered.  
See the statement of the 
    Islamic Fiqh Council on this issue in the answer to question no. 
    97530. 
We have not studied this 
    particular card, but Dr Muhammad al-‘Usaymi (may Allaah preserve him) was 
    asked about it and he replied: 
I stated that it is not 
    permissible, because there is no reason for the extra monthly charge which 
    is in addition to the actual cost, except the loan taken through the card, 
    and that is the essence of riba. Moreover, it imposes a penalty on the one 
    who is late in paying, which they call a fee for late payment, which is riba 
    that is forbidden in the Qur’aan, even if they claim that it will be donated 
    to charity. The Messenger of Allaah  (peace and blessings of Allaah be 
    upon him) was in the most urgent need of money to give to the poor and needy 
    among ahl al-suffah, but he abolished all the riba of the Jaahiliyyah. I 
    warn myself and my brothers to beware of the traps of the shaytaan, 
    especially with regard to riba. One of the main ways in which riba was 
    introduced to the Christians was the imposition of riba for late payment of 
    personal loans. And Allaah is the One Whose help we seek. End quote from the 
    website of Shaykh al-‘Usaymi. 

    (in Arabic:
    
    http://www.halal2.com/ftawaDetail.asp?id=393 
    )
He also said:  
If it is as the questioner 
    described then it is haraam. I reiterate that the bank will charge a monthly 
    fee from the customer under the name of bank charges. Undoubtedly charges 
    for cards which offer loans should be based on the actual work involved for 
    the issuer, which is the bank, and it is not permissible for it to make a 
    profit from those charges, because the loan that is given through the card 
    will be a riba-based loan if the bank charges an administrative fee that is 
    greater than the actual costs of the work done. I call upon my fellow 
    Shaykhs and muftis who have ruled that it is permissible to recant those 
    fatwas, because riba is haraam and it initially started in the kaafir west 
    through such charges. And Allaah knows best. End quote. 

    (in Arabic:
    
    http://www.halal2.com/ftawaDetail.asp?id=8215 
    )  

    And Allaah knows best.