we know that owing something to someone is not the best thing to do, when we need monetary funds.
credit cards use is a quick sand and we are all in it almost always.
from an islamic economic and personal spending ethics point of view, this is what i found.
any thoughts?
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.
(13735http://www.islam-qa.com/index.php?ds=qa&lv=browse&QR=13735&dgn=3&
)
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.
Islam Q&A
^ i know. EMM
interest on grad loan is a lot. the amount of loan one already has taken, it has to be paid back.
or my dear sister, either we look for very good jobs or a waiver.
and also next generations must be self sufficient and make money before they ever have to borrow, to obtain basic and higher education.
Now many multinational banks are coming up with Islamic alternate products.
As far as I know in UK Islamic Bank of Britain didnt had credit card option and it was due to be launched. However here in Dubai I am using credit card, which is essentially a visa debit card type thing.
Having said that some moderate Ulema prefer to stay away from bank transactions.
Well I say , these days , banks do offer , interest free student loans , try to get one , it wont be a hefty one , but at least something is always better then nothing !
Well , 1st of all , in my understanding, using credit card is not Haram , if you oblige a simple condition . Pay the due amount in full before the interest incurred . Its normally a month time before companies apply interest on purchasing . Mind it here that drawing cash out of your Credit card is a total different issue , as soon as you take cash out , interest has been charged , so it is different ball game . For purchasing , most of companies , like Master or Visa, thesedays operate on zero interest policy , so if you pay the full amount credited before the interest due date , they only charge you an annual fee for providing that service , which is not entitled as haram in islamic finance context.
Muslim people living in west , often have to use these cards on daily basis , there are scenarios where you have no choice left , for example , booking online flights . you must need a credit card to perform that task. Therefore , I feel that we can use credit card, if we enough money to clear the debt before the interest incurred . For example if I buy some thing today and pay the full due amount in couple of days . Its not haram. There is another alternative , where one can use a direct debit card ( Laser in Republic of Ireland and Switch cards in United kingdom) in which , you are only allowed to use the money , u already have in ur account . But you don’t find many online places accepting these direct debit cards but you can use them well in domestic context . For covering that niche , there are some banks and financial institutions offering prepaid cash cards for one off usage purpose , u can use them as well .
About Islamic banking , well majority of practicing Muslims have opposed these Islamic banks, and name them as contractum trinius , in a nutshell it is borrowing of money on fixed interest rate . But there are Islamic bank like Meezan bank of Pakistan running under guidance of pious Ulmaas like Mutfi Taqi usmani . They claim to have 100 % riba free banking products .
May some intellectual friend of mine here on this forum gona say as,
It was narrated that Jaabir said: The Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the one who writes it down and the two who witness it, and he said, “They are all the same.”
Narrated by Muslim, 1598
So every one of us , who has a bank account ( Traditional banking ) , is under that curse. As Traditional Banks are involved in interest based banking , therefore as customers , we are also helping them in this dirty business .
But what about Muslims living and working in western countries , don’t they require a bank account to get paid by the their employers ? Is it not like , here it works as a proof of address as well !
It is a long debate mates , let me just cut it short here !
It would be ok to use credit card if you pay the whole amount before the due date.
Q: Is it permissible to use a credit card facility?
A: Yes, it is permissible to use a credit card facility. However, a credit card holder should ensure that deposits are made on time to avoid paying interest.
Wow... You know I once read somewhere that a time will come, where it will be best for muslims to go live somewhere on there own and do zikr... (not sure how accurate, but yeah)
point well taken from everyone's sense of analysis of the issue.
the logical thing is that we wont have to contend with borrowing, if in the first place, we made enough to live within our means.
since however, sometimes, people do not feel that they can avoid it, the sane thing to do is, purchase only infrequently and have the least amound of expense on a credit card and pay it off, within the time period that it does not accrue interest.
Lahore ka Cheetah **sahab…**i have long ago read this hadees in a book..may be ..it not in tirmizi..some other…but i fully remeber the text..it is the same…
however..i have got some more ahadees on it…which are nearly the same as i quoted above…