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  1. #1
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    Default Credit card is haram

    I heard that using credit cards is haraam, but if I am sure that I am going to pay the bank within the time limit, so the bank will not charge any interest, is this also regarded as haraam?.

    Answer :

    Praise be to Allaah.

    What you have heard about credit cards being haraam is correct.

    Using them is haraam even if the user is certain that he will pay the bank
    within the time limit.

    It has already been explained in the answer to the question mentioned that they are haraam because the bank lends money to the user in return for interest, and this interest is the price of the annual subscription to the credit card, as well as other interest charges which are to be paid to the bank if the user is late in paying.

    The cost of the card is a kind of riba which the user pays to the bank, and this riba is paid by the user whether he pays on time or not.

    Also, the user enters into a contract with the bank which means that he is obliged to pay interest if he delays payment. This is also haraam, because it is not permissible for a Muslim to commit himself to doing something
    that Allaah has forbidden.

    The user may think that he can pay up on time, but then something happens to him that prevents him from doing so, so he pays riba to the bank.

    Shaykh Ibn 'Uthaymeen (may Allaah have mercy on him) said concerning this kind of contract:

    A contract of this type is not permissible, because it involves riba which is the price of the card, and it also means committing to pay interest if payment is delayed.

    In another fatwa he said:

    This transaction is haraam, because the one who enters into it commits himself to paying riba if he does not pay on time. This is an invalid
    commitment, even if he believes or thinks it most likely that he will pay it before the time is up, because circumstances may change and he may not be able to pay it off. This is a matter that is in the future, and no one knows what will ha! ppen to him in the future. So dealings of this type are haraam. And Allaah knows best.

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  2. #2
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    Default Re: Credit card is haram




    for sharing, its kinda new to me.

  3. #3
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    Default Re: Credit card is haram

    Not to cause disagreement, but here is another view on credit cards.

    ---------------------------

    Is it haram to use credit cards?

    Answered by Sidi Faraz Rabbani

    Is it impermissible to use credit cards? Is it not riba and haram? But how do I avoid it? Is it even haram to acquire without using? What about the bank fees? Is it not ribaa in tasteful clothes?



    Shaykh Taqi Usmani answered this question:

    The Use Of Credit Cards

    Shaykh Muhammad Taqi Usmani

    Q. Kindly throw some light on the use of credit cards, which are floating in the market. Majority of these cards belong to Professional banking institutions, such as American Express, City Gold Card etc. However, some cards are issued by companies such as Diners club etc, which are not themselves banking institutions. Please explain the ruling of Shariah about both these cards. In your reply please cover both the aspects of using credit cards, first as holders of the card, used to offset the purchase price and second, when we accept these cards as sellers.

    A. The use of credit card by a purchaser is allowed in Shariah, no matter whether the card is issued by a banking institution or some other company. However, the following points must be borne in mind in this respect :

    (i) The best way of using these cards is to open an account wherefrom all the amounts owing are debited by the issuing company to avoid the possibility of default which may in some cases, carry the risk of interest.

    (ii) If the system of direct debit is not arranged, one must always be careful that he pays the bills within the stipulated time without fail, so that interest may not be imposed upon him.

    (iii) The annual fee paid by a card-holder to the card-issuing company is not interest, rather it is a free charged for certain services rendered by the company for the benefit of the holder. That is why it is charged irrespective of the amount actually spent by the holder.

    The second question is whether it is permissible for a seller to accept credit card. This question has been a point of debate between the contemporary scholars of Islamic jurisprudence. Some of them are of the view that the amount charged by the card-issuing company to the shopkeeper is analogous interest. They say that it is equal to discounting a bill of exchange, hence not allowed in Shariah.

    However, some other scholars are of the opinion that it is not interest. On the contrary, it is a fee charged by the company for certain efforts undertaken by it. Firstly, the company has to do a lot of work for the benefit of the seller. Therefore, the commission charged by it is similar to the commission of a broker which is undoubtedly permissible. This commission is different from discounting a bill of exchange, because the rate of discount in a bill of exchange is always tied up with the period of its maturity, while the commission charged by the company from the merchant is not so linked. This commission is determined irrespective of the time on which the card holder shall pay the amount to the company. Therefore, it is just like a commission charged for brokerage services.

    In my personal opinion, the second view seems to be more preferable.

    http://www.darululoomkhi.edu.pk/


    “Say: O My slaves who have transgressed against themselves! Despair not of the Mercy of Allah, verily Allah forgives all sins. Truly, He is Oft-Forgiving, Most Merciful.” (39:53)

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    Default Re: Credit card is haram

    Is It Permissible To Use Credit Cards?

    Answered by Sidi Faraz Rabbani

    Is it permissible to use credit cards?

    Assalamu alaikum,

    The contemporary fuqaha have discussed this, and generally agree that it is permitted to use credit cards with the following main conditions:

    1. One has the firm resolve and ability to pay the amount before any interest becomes due; and

    2. One is sure that one will actually pay it off before any interest becomes due. That is, one has the funds to do so, and one’s habit and past experience shows that one will actually do so.

    Walaikum assalam,
    Faraz Rabbani.

    Rewards on Use of Credit Cards

    By Mufti Taqi Usmani

    When using credit cards, some banks give bonus miles or bonus points for purchases and some other benefits. Please clarify it if we can use it. Every month I pay off the total of account without paying an extra cent of interest. [Ayyub Gajia]

    A.) If a credit card is used for purchases and the bills are paid promptly without requiring to pay interest on late payment, it is permissible and the benefits given by the credit card company as rewards can be availed of. It is not impermissible to benefit from such rewards.

    Source: http://www.albalagh.net [Posted: 27 Zul-Qa'dah 1422, 10 February 2002]


    “Say: O My slaves who have transgressed against themselves! Despair not of the Mercy of Allah, verily Allah forgives all sins. Truly, He is Oft-Forgiving, Most Merciful.” (39:53)

  5. #5
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    Default Re: Credit card is haram

    Scholars whom I have asked regarding credit cards have stated the same opinion that Aaminah has posted.

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    Default Re: Credit card is haram

    This is only my opinion. Credit Cards are the DEVIL! I got these stats from Oprah...LOL. The average American with a balance of 2,000 or more. If they pay the minimum, or even double the minimum every month, it will take them 23 years to pay off their balance. The average American has credit card debit for a very long time. Let's say your minimum payment is $44. If you pay $200 a month, your balance will still stay the same after a couple of months.

    No doubt that credit cards should be haram. But in fact, you can't let them pimp you like that. Credit Cards and Cell Phones are just the same. With Cell Phones they give you 300 mintues to use when you use them the most, then they give you 5,000 when you never use them. And they charge you .45 a mintue every minute over. The Average American has a cell phone bill of $100-$200 a month! But if you use the Credit Cards and cell phones properly, they're shouldn't be any ridiculous charges. For me, I only use my Cell phone in the times I know I get the most minutes, afterhours, like night minutes. And I buy on the credit card only a little amount that I can pay the following month.

    People think that they can just swipe the card and not have to worry until later, but now they will walk out of the store with the product they want. It adds up. The only reason one should use a credit card is to establish credit, to help purchase a car or home in the future. So if you use that to your advantage and only put like $20-50 a month on the card and pay it in full each month. You will not accure any interest.

    I think over accesivly purchasing items on your credit card is haram, but to build credit it shouldn't be haram. If credit cards were haram, then why do they have Muslim Credit Cards from MEF. They don't have any interest on it and they give a small portion of your purchases to the Masjid of your choice. I'm trying to find the web site to sign up for the card, but I can't seem to find it. Here is a link to an article that I found though.

    http://www.islamfortoday.com/americandream.htm

    PEACE
    Mr. Shadow

  7. #7
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    Default Re: Credit card is haram

    Interesting article... Thanks for sharing.


 

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