What is Bread Financial Holdings, Inc.'s Shariah compliance score?

Bread Financial Holdings, Inc. (BFH) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Bread Financial Holdings, Inc. pass AAOIFI screening?

Bread Financial Holdings, Inc. (BFH) does not pass AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. BFH's debt-to-market-cap is 83.4%.

How much purification is needed for Bread Financial Holdings, Inc.?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Bread Financial Holdings, Inc. (BFH) using the latest financial data.

Where can I screen Bread Financial Holdings, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Bread Financial Holdings, Inc. (BFH) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

BFHNot HalalF

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Compliance Status

Not Halal

Screened on Oct 17, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Bread Financial Holdings, Inc. (BFH) halal? Not Halal. Based on AAOIFI screening, Bread Financial Holdings, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Bread Financial Holdings, Inc. (BFH) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 17, 2026. Source: https://halalscreener.app/en/stock/BFH

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

83.4% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding BFH

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

BFH: Is Bread Financial Holdings, Inc. Halal?

Bread Financial Holdings, Inc.

NYSEFinancial ServicesUS

$102.56

Market Cap: 3.9B

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About Bread Financial Holdings, Inc.

Bread Financial Holdings, Inc. offers cutting-edge payment and credit solutions to consumers and various industries throughout North America. Their services include comprehensive financing for credit cards and other loans, which involves managing risk, originating accounts, and providing funding for approximately 130 private label and co-branded credit card programs. They also support around 500 small and medium-sized businesses through their Bread partnerships and issue Comenity-branded general purpose cash-back credit cards. The company is responsible for administering and overseeing all loans it generates, covering private label, co-brand, and general-purpose credit card portfolios, as well as its Bread BNPL (Buy Now Pay Later) products, which include installment and split-pay options. Beyond lending, they provide marketing, data, and analytics services. Their enhanced digital toolkit features a unified Software Development Kit (SDK), allowing seamless integration with their product range and encouraging the presentation of credit payment choices earlier in the retail journey. Additionally, the Bread digital payments platform, powered by a comprehensive suite of application programming interfaces (APIs), empowers merchants and partners to readily incorporate online point-of-sale financing, such as installment and split-pay solutions. Established in Columbus, Ohio in 1996, the company was formerly known as Alliance Data Systems Corporation until it rebranded as Bread Financial Holdings, Inc. in March 2022.

Sector: Financial Services · Industry: Financial - Credit Services

Why this does not pass

Interest-bearing debt is 83.4% of market cap, over the 30% AAOIFI limit.
Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 17, 2026

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Institutional-grade Shariah analysis

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Compliance History

Not Halalnow
since Aug 2026
Under Review
until the change above
Not Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: FMP

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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$18.48

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Sprott Physical Gold Trust

$31.50

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Sprott Physical Gold and Silver Trust

$40.45

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Frequently Asked Questions

Is Bread Financial Holdings, Inc. (BFH) halal to invest in?

Bread Financial Holdings, Inc. (BFH) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Bread Financial Holdings, Inc. get a F compliance rating?

Bread Financial Holdings, Inc. (BFH) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 83.4% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Bread Financial Holdings, Inc.'s Shariah verdict?

Bread Financial Holdings, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Bread Financial Holdings, Inc. re-screened for Shariah compliance?

Bread Financial Holdings, Inc. (BFH) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.