Question Summary:
Is the 4% on my credit card in this situation an interest?

Question Detail:

I am trying to purchase a house for my family and I am 20,000 $ short of buying it cash to avoid a loan through the bank. My credit card company is offering me the option to get 20,000 $ cash advance with 1 year 0 % interest, after one year interest goes up to  14 %, there is also a one-time fee they call it ‘transaction fee’ and it is  4 % one-time fee. Is this is concerned Riba or is it Halal if I intend to pay the 20,000 $ during the 0 % period?
I am also concerned about the 4 %, is it Riba or not?

Answer :

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In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykumwa-rahmatullāhiwa-barakātuh.
May Allah make all our tasks easy and grant all of us Halaal income. Ameen
In principle, it is impermissible to enter a contract which has a condition of interest upon default.
If one has entered in such a contract then he has to pay back the amount before the interest starts to accumulate on the loan.
According to our understanding, the 4% charged is a service fee. If this is the case then it is permissible to pay the 4 %.
And Allah Ta’āla Knows Best
Mufti Hussein Issa,
Mozambique
 
Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net