credit card

[Tariq_Akhtar]

Re: credit card

Just like some people cannot get beyond rules of female evidence, polygamy circumstances, prohibition of savings etc, this is yet another topic where they substitute false piety to avoid thinking and reasoning. You confront them with the unreasonableness and their only defense will be to attack you as a lesser person who is challenging God...as if challenging them is challenging God.If someone gives you a dollar it is charity. If they let you use it to run a business it is fair for them to expect a fair return. Whether you call it interest or something else, fact is fact. Every single person including the religious so called 'authoritiesk posting here, have received and paid interest. That some of them won't admit it makes them liars. And if they still invoke word of God it just makes them naïve hypocritical.

[risc]

Re: credit card

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

So what is halal?

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

What if like me you have never paid a single penny more than spent? what charge/price has the bank made on me. What about when mullahs transfer money to other side of the world you never complain about the PRICE being charged then. Same goes for currency conversion, you are being charged.

. 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.

What riba. I aint paid a penny. infact it costs the lender money to keep me as a customer.

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.

Thats why you set up automatic payments. So that this scenario does not occur.

I've also heard some maulvis suggest insurance is haram i.e. selling risk. For some shaving your testicle has to be in the constitution with a police to do random spot checks.

[iamhummad]

Re: credit card

Using credit cards is haraam even if you pay up within the time limit

Question:
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. That has already been discussed in question no. (13735)

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 happen to him in the future. So dealings of this type are haraam. And Allaah knows best.
this answer is from (islam-qa.com)

[Code_Red]

Re: credit card

^ Ask moulana sahab if paying telephone bills is also haraam ?

they also charge you interest in the form of line rent even if you dont use phone at all you will have to pay it regardless

should we consider the line rent as interest ?
and you enter into contract that if you dont pay monthly bill on time then you will have to pay extra amount as fine. ( i am talking about pakistan )

if we go by above answers (post 63)Telephone can be declared haraam as they charge interest in the form of service charges.

but actually moulana sahab is mistaken here

[quote]
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.
[/quote]

The cost of card is actually the cost incurred on making the card, the whole process, the security checks and the year long billing, collection and for providing countless other services to custormers.

These services are sometime free and sometime charged separately. These services include interest based services which are haraam (as interest is involved ) but other services such as SMS alert on each transaction it is purely for customers convenience. If someone calls them interest then they should also disconnect their telephones ansd consider them haraam too ( which is not the case as everyone knows that there is nothing wrong in using telephone, islamically )

[Tariq_Akhtar]

Re: credit card

These three elements jointly make up Riba and any deal or bargain or credit transaction in money or in kind which has these elements is considered a transaction of Riba.

we understand that is a good definitoon of interest. thank you

Credit cards are the major pillar of consumerism. They are the prime example of something which encourages you to spend even if you don't have the money. In a nutshell, credit cards are good for the banks and bad for you. They also involve Riba.

Not true. I use credit cards all the time - I get reward points, additional warranty, convenience of not having to carry cash, ability to function in multiple countries and currencies, and be able to get a good organized consolidate single bill. I don;t like paying interest ofcourse and I don't.

By using credit cards to buy, you end up paying far more than the original price of an item because of impatience and inappropriate planning.

again untrue. In most cases I actually pay less because of the rebates that the credit card offers. If you cannot plan your purchases appropriately, you should blame yourself or a dumb piece of plastic? Do you hand the gun or the shooter?

I can rebut each of these kind of arguements. My view is that circumstances in the 6th century Arabia might have made such a monetary policy necessary. Harping on that now without qualifications is foolish. The qualifications ofcourse are loan sharking, indenture etc.

I just cannot accept that poor windows and old people (retirees) who survive by incoming fixed rate time deposits alone are committing sins. Does that make sense?

[Tariq_Akhtar]

Re: credit card

JUST SO PEOPLE KNOW

Even though I pay my credit card bill in time and in full, the bank still makes money in th eform of fee they charge the merchant. It is perfectly good commerce and I wish the objectors will try to understand how it workks.

I get the conveniences I mentioned in my earlier post
The merchant gets a safe way to accept payment & pays the bank
The bank gets to share in th etransaction fee with the network
Finally if someone cannot afford something today but has money coming tomorrow, they still get to buy.

If you lose control and start splurging and max out credit cards and start paying huge interests, it is your fault. Don't try to blame God, credits cards or interest.

How many students are able to finish their education because of loans on which they pay interest?Where is the sin this this?