There are indeed potential halachic issues with borrowing or lending a credit card since it is forbidden to charge interest from your fellow Jew. To help clarify things, let’s give a simple and common scenario: You went shopping with a friend, who either left her wallet at home or is a bit cash-strapped at the moment. Being a good friend, you offer to let her use your credit card, figuring that it will be a win-win for both of you. Your friend gets to make her purchase and you get to rack up some points on your credit card toward a well-deserved vacation.

Interest Before you reach for your wallet, the following must be clarified. According to halachah, when you let someone use your credit card, you are borrowing the money from the credit card issuer and in turn lending the money to your friend. In other words, there are really two transactions taking place, one between you and the bank, and another between you and your friend. Now, according to Jewish law, although a Jew is permitted to borrow money and pay interest (ribit) on a loan from a non-Jew, a Jew is forbidden to be party to any transaction that involves charging another Jew interest. Practically, this means that if your friend is cash-strapped and plans on paying you back in installments, compensating you for any interest or late fees you may incur, even if your friend is more than happy and willing, she is not allowed to pay even a penny more than the original charge. This applies even if it is arranged that she pay the money directly to your credit card issuer. The above is not meant to discourage you from lending money to one in need. On the contrary, lending money to someone in need is considered a very special mitzvah and one of the greatest forms of charity. However, when giving your credit card to use, you need to be very aware that you are actually lending your own personal money, not the bank’s. Therefore, if your friend isn’t able to pay you back the full amount by the due date, you either need to take upon yourself to pay any interest or late fees that are incurred with your own money, or just pay off the full amount on the credit card bill from your own personal money, and your friend will pay you back the loan amount over time.