An Islamic Plastic Card

[brighten]

:salam2:

I have always stick with my principle of not having a credit card. I was strictly a cash person. Rather prefer the debit card over the credit card. However with globalization, as much as I tried, I have to admit I have to give in. I now have but just one credit card. Why ? simply because the market demands one. I learned during an emergency situation and I really needed to make bookings/reservations for flights/hotels they would not entertain unless I produce a credit card. Until they introduce an Islamic credit card what choice do we have. May Allah forgive us and help us to uphold our deen.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

An Islamic Plastic Card
~ Sharifah Carlo


Whether you call it Visa, MasterCard, American Express, or Discover, it's still a credit card. It makes a big difference. Having one can open doors to buying anything. If you are out of cash, you can whip the “plastic” out and make your purchase. Whether purchasing clothing, shoes, eating at a restaurant, applying for a loan, or renting a car, credit cards can be very useful and helpful.

With the usage of the credit card, most card users have become very familiar with using the card as a loan machine leading them to pay a high amount of interest, which has become an enormous worry for the Muslims. The big dilemma is whether or not Muslims can or cannot use them. To some Muslims, as long as there is some sort of control and payment is made on time in the full amount in order that interest cannot be entered into the transaction, then using credit cards is halal (lawful). If riba, or interest, is not earned then it is not going against the order of Islam. On the other hand, some others have the opinion that credit cards are by no means Islamic. They engage in riba-based transactions; therefore going against the rulings of Islam.

Sharifah Carlo, a writer in Islamic affairs, who is against the use of credit cards is convinced that credit cards are not as essential as they have been made to appear. Carlo finds it hard to believe some open-minded Muslims who use these cards and excuse their actions by saying that as long as one pays on time it becomes halal.

To Carlo, signing the commitment contract when applying for a credit card is just like committing a sin. She said, “The knowledge of the future is with Allah alone. We cannot guarantee that we will not be unable to pay at some point.” What Carlo sees as critical is when Muslims place themselves in a situation where they will be forced to commit a sin.

“The Prophet has warned us that the one who takes riba, the one who receives, the one who witnesses the transaction and the scribe are all equal in sin," Carlo said. Disapproving some of the statements of Muslims, Carlo added that interest is a big issue. “Now, knowing this, what if we plan to pay off the balance at the end of each month so that there will be no interest? Can we say it is halal then?” she asked.

Dr. Imran Usmani, a well-known Muslim scholar and a Shari’ah advisor at Al-Meezan in Pakistan, agrees with Carlo. Dr. Usmani said that the interest charged on the card users when there is a late payment is non-Islamic. “ The premium charged constitutes riba… if this element is taken out, the card becomes Islamic” he added.

Another card that does not incur interest and which is permitted in Islam is the debit card or check card. This card actually works like an ATM card. How does the debit/check card work? One makes a purchase; the purchases made are deducted from one’s checking account immediately. To use the debit/check cards, there is no interest or monthly fee, which is different from the credit cards. Dr. Usmani did not indicate which is better but he said that if the interest aspect was taken out of the credit card, then many Muslims could use it. He also continued to say that the money that is being charged for penalty should be put in a charity fund on behalf of the customer. He says that this should be an ingredient of the Islamic Credit Card.

According to IslamiQ.com, a survey was done on the topic Dr. Usmani brought up. Should there be an Islamic Credit Card for the Muslim population to use? American Muslim Investment Network (AMIN) Group conducted a survey asking that question. During an Islamic Convention in Los Angeles, the survey found that ninety-nine percent showed interest in an Islamic Credit Card that would be free of interest. AMIN said, “the majority of the participants considered paying full balance at the end of the month to avoid interest due to the Shari’ah requirements.”

 

[q8penpals]

Salam - so would a "Muslim credit card" carry just a monthly fee, not interest - so that you would pay something every month whether you used it or not - a user fee?

I mean, the bank needs to make money, there cannot be a credit card that doesn't earn the sponsoring bank any income, or else why would they bother?

Lana

 

[Kayote]

:salam2:

I agree, its almost a necessity, a credit card. I have listened to Dr. Zakir Naik & while I partly agree, I do think there are many advantages of credit cards to us living in west.

The important thing is to not be spend thrift. Donot go about taking loans if you know you donot need it. Buying new stuff because you are paying with your card is wrong. As muslims we should always be wary of taking on the burden of debt. So, as long as we clear the balance on the credit card & donot pay interest, I think its fine to use for the time being.

Allah knows best.

 

[brighten]

:salam2:

Islamic banking is widely practiced these days and they make halal profits to sustain business. Sadly they have not come up with an Islamic credit card to date. I’m sure if they can come out with something along the line of shariah, we won’t mind paying the admin fee due as long as it’s not associated with any form of interest (riba) which is haram in Islam. And Allah knows best.

wassalam

 

[Mrmuslim]

salaam alikom,
in one of the conferences , the question was raised to some scholar and shyokh the reply was like this

if you cant pay back the what you spend on time aand you will be charged intrest then its better not to have a cc.
If you can pay back what you spend without dealy or getting charged the intrest, then you can have it for emergencies.

Allah a3lem i am just saying what I heard in one of the conferences.
Best is to ask a scholar about this issue instead we starting saying my opinion

wa salaam alikom

 

[zarah]

Assalamu Alaikum

:salam2:

Jazzak-Allah khair for sharing.

:arabi1:

 

[Basicofislam]

I have credit card. But if i charge anything on it i pay the total amount by the end of the month so i dont get charged interest. And all my family members do the same.

 

[AishaR]

:salam2:

Inshallah you are all in good health

I have mixed views of this. My husband until recently has never had a credit or debit card. I recently talked him into getting a debit card as I dont like him carried large amounts of cash around but he still hasnt used it. For 42 yrs he has survived without one!
Where as I only ever carry a few pounds, enough for car parking or to get a coffee whilst out. I wouldnt leave the house without my debit card. I find it much easier to use my card. I do have a credit card for emergencies. Recently we had a death in the family & had to get flights & hotels so without credit/debit cards it would have been impossible. I always make sure the balance is paid off asap as not to get charged any interest.

They are useful to have but use with caution!!

 

[Kayote]

I have credit card. But if i charge anything on it i pay the total amount by the end of the month so i dont get charged interest. And all my family members do the same.

:salam2:

Simply set up a direct debit & the banks will draw the money required to pay the balance themselves.

 

[zarah]

Assalamu Alaikum

I have credit card. But if i charge anything on it i pay the total amount by the end of the month so i dont get charged interest. And all my family members do the same.

:salam2:

I know someone who has the same condition with her credit card.:arabi1:

 

[talibulislam]

its a risky busness

living in west ,try to keep it simple,stay with debit an if u have cc,then don't shop which u cannot pay back togather at the end of month at once,i stick to that principle,plus i keep only one or two companies,rest i throw them in garbage,never shop to the extent where i have fear i cannot pay at once at the end,may allah save all of us from this fitnah of riba till we come up with some thing really islamic insh'allah

 

[zarah]

Assalamu Alaikum

living in west ,try to keep it simple,stay with debit an if u have cc,then don't shop which u cannot pay back togather at the end of month at once,i stick to that principle,plus i keep only one or two companies,rest i throw them in garbage,never shop to the extent where i have fear i cannot pay at once at the end,may allah save all of us from this fitnah of riba till we come up with some thing really islamic insh'allah

:salam2:

true,I stick to my debit card.(well thats the only card I have,there is no point applying for so many.)

 

[Ayep]

:salam2: bros and sisters

The credit card will always be linked with the riba-based economy. If you check the interest rates, banks charge about 20-22% interests a year. That is the ploy of the Jewish banks or usury long ago and now adopted in the modern banks to get ahead in business.

Back home in my country, however the reality quite a number of Muslims are caught up in the material world and are ignorant or simply turn a blind eye to riba. The result is they become slaves to the credit system and many end up in financial ruin once they lose a job and cannot pay for their credit card. (Up to 20-30 years of installment for a car imagine that) (reason for poverty?)

Credit card or credit system with interest rates is an unnecessary evil so lets warn family members against starting with one.

Debit cards are safer since they charge immediately and we pay only service charge annually. No interest involved. Lets live within our means because we would'nt know what's going to happen tomorrow. Remember all debts must be paid in full before we leave this world so lets not burden ourselves and family by being safe than sorry.

Allah knows best

 

[Kayote]

:salam2: bros and sisters

The credit card will always be linked with the riba-based economy. If you check the interest rates, banks charge about 20-22% interests a year. That is the ploy of the Jewish banks or usury long ago and now adopted in the modern banks to get ahead in business.

Back home in my country, however the reality quite a number of Muslims are caught up in the material world and are ignorant or simply turn a blind eye to riba. The result is they become slaves to the credit system and many end up in financial ruin once they lose a job and cannot pay for their credit card. (Up to 20-30 years of installment for a car imagine that) (reason for poverty?)

Credit card or credit system with interest rates is an unnecessary evil so lets warn family members against starting with one.

Debit cards are safer since they charge immediately and we pay only service charge annually. No interest involved. Lets live within our means because we would'nt know what's going to happen tomorrow. Remember all debts must be paid in full before we leave this world so lets not burden ourselves and family by being safe than sorry.

Allah knows best

:salam2:

There should be no doubt that by getting a credit card, in a way, we are supporting the credit card companies (Mastercard, Visa, AE etc). What we are/should always make sure is that if we are going to get a credit card, we must spend only the amount we know we can pay at the end of the month without incurring interest.

And yes, you are correct. By purchasing (say) a car on installments, people do become slave because they have to make sure that they make the payments, or else they default on payments.

 

[Globalpeace]

Asslamo Allaikum All,

Going off the tangent…

I have been thinking about “HALAL MORTGAGES” & “ISLAMIC ACCOUNTS” “PLASTIC” from Non-Muslim banks such as HSBC and from my rudimentary understanding of economics and banking system it may be true that the money is not invested in non-Islamic activities but I think they use this money (because it is ring-fenced & cannot be used for Haram stuff) to hedge their reserves…Bank of England (read FDIC in USA) grants permission to the a bank to lend money according to their reserves…so higher the reserve the more they can lend…

So guess what! Muslims get Halal loans, accounts, plastics etc. but this money is actually used to fund the greater lending & dealing in usury…So the more the Muslims participate in this stuff the better (for the banks)…

Mortgages are highly profitable for a bank & according to my rudimentary understanding in French it literally means CHAINED TO DEATH!

In the 70’s, 80’s & early 90’s it didn’t matter but now due to Islamic awakening Muslims are concerned about economics & they were increasingly looking for investment opportunities outside of the traditional banking sector so the banks have come up with a clever way of enticing the Muslims & taking their money.

I am neither a scholar nor an economist but Gordon Brown & the banks’ interest in Islamic economics (all of a sudden) is not without reason…The dealings with a contemporary (or even Islamic banks) may be Halal but the big picture “in my humble opinion” is not good!

I have to have a credit card & a bank account (personal & business) because I need to conduct financial transactions & rent cars etc but it does pain me to realise that I am a “dumb tool” in the hands of a gigantic manipulation system with no control over the whole thing…

What also pains me is the general lack of understanding & facilities in Islamic finance when Islamic FIQH is over 50% to deal with transactions (social, financial etc.).

Jazakullah Khairun

 

[Terah]

I have a question... what about a car loan or a home mortgage? Those also carry interest on them. A usual car loan would be for 4 or 5 years in the west and a home mortgage for 20 or 30 years. Would that also be forbidden according to Islamic law?

(please forgive me, I am trying to learn)

 

[acedoc]

dealing in Riba (intrerest) is Haram (prohibiited) in Islam

http://islam-qa.com/index.php?ref=824&ln=eng

http://islam-qa.com/index.php?ref=3685&ln=eng&txt=riba

http://islam-qa.com/index.php?ref=25&ln=eng&txt=riba

http://islam-qa.com/index.php?ref=2492&ln=eng&txt=riba

What should a person who borrowed with interest(Ribba) do?

Question:
Salam Brother,
My question is; how does one purify himself or his place of business from things that may have occurred prior to knowledge that it was haram? For example, I own clothing stores, but have financed this business via moneys borrowed and paid interest upon. To this day I am using a bank where I have a loan and pay interest on it.
Also in the past I had a business that did not succeed, and was forced into bankruptcy, which meant that there were many people and businesses that were left unpaid, what is my Islamic duty in that case? I did make a sincere effort to pay all that I could but after the business went bad was not able to repay them.

Answer:

It is wajib that you repent for each loan involving interest you took. The Prophet (peace and blessings of Allah be upon him) cursed all involved in the interest, the recipient, the sponsor, and the one eating and the feeding it, as stated in the authentic hadith. The Prophet (peace and blessings of Allah be upon him) said, "The gold for the gold, the silver for the silver, wheat for wheat, barley for barley, date for date, salt for salt, similar for the like, and hand in hand. So whoever adds or seeks to add, then he has used riba. The recipient and the giver of the transaction are the same". (Reported by Muslim, #1584.)

On the authority of Jabir (may Allah be pleased with him) who said that the Messenger of Allah (peace and blessings of Allah be upon him) "cursed the one who consumes interest, the one giving it, the one bearing scroll, and the two witnesses to it". He said (peace and blessings of Allah be upon him), "they are all equal." (Muslim narrated it.)

If a Muslim wants to partake in a specific affair and he doesn't know it's ruling, then it is upon him to ask before he gets involved in it. Ignorance isn't an excuse for each and every situation. As far as the loans you borrowed, you are obligated to return the initial money borrowed only. If you are forced to pay riba, and that is the added amount with no way out, then we hope that you do your best in repenting to Allah to pardon you. We also hope that you remain consistent in your business and give sadaqa with what you are able to, in order to purify yourself and your wealth.

We ask Allah to enrich us with His halal and to avoid His haram.



Islam Q&A
Sheikh Muhammed Salih Al-Munajjid




Repentance (tawbah) from riba after having spent it all

Question:
I used to have money earned from usury or interest (riba), but I have spent it all and none of it remains with me. Now I want to repent. What am I required to do?

Answer:

Nothing is required of you except repentance and seeking forgiveness from your Lord. Note that riba is a very serious and grave issue, seeing that Allah (subhanahu wata'ala) did not declare war in the Qur'an against anyone except the one who accepts riba. Since the money earned from riba has all gone, then there is nothing due from you in its regard.



Excerpts from the book "I would like to repent BUT..."



Question:
If one has a student loan with riba that was taken before accepting Islam, is he/she obligated to repay this loan since riba is involved?
JazakAllahu khairan.

Answer:

Praise be to Allaah.

We put this question to Shaykh Muhammad ibn Saalih al-‘Uthaymeen, may Allaah preserve him, who answered as follows:

It was reported that the Prophet (peace and blessings of Allaah be upon him) addressed the people on the day of ‘Arafaah, and said: “The riba of the Jaahiliyyah is cancelled.” This was in spite of the fact that these contracts had been made during the time of Jaahiliyyah and before the ruling on riba was established. If it is possible for him not to pay the interest on the loan, then he should not pay it, but he should not make a gain twice. The Muslim judge or leader should take the amount he was supposed to pay in riba and give it in charity or put it in the bayl al-maal (Islamic treasury).

Question:

You said, “he should not make a gain twice.” What does this mean?

Answer:

The first gain was when he benefitted from the money that he took from the bank, for example. The second gain is the interest which, if he does not pay it to the bank, he will have made a second gain… But still, he should not pay it to the one who loaned him the money on the basis of interest. For example, if he borrowed a million and owes interest of one hundred thousand, do we say pay back the million and keep the hundred thousand? No, we say pay back the million but do not give the hundred thousand to the usurer, and do not keep it for yourself as a profit or gain… Put it in the bayt al-maal or give it in charity. And Allaah knows best.

Shaykh Muhammad ibn Saalih al-‘Uthaymeen

Disposing of riba income received before one came to know that it is haraam

Question:
Assalamu alaikum,
A person used to receive interest on his bank deposits. He later learnt it is forbidden (haraam) and ceased to receive interest. Later on, he feels he should give out this money to complete the conditions for his repentance (tawba).
However, there are two problems :
1- He cannot calculate the exact amount of all the money
he previously obtained from bank interests.
2- The savings this person has now, are surely less than what
he obtained from bank interest over the years.
Given the above, please answer the following questions :
1- Is it a condition of this person's tawba to give out the exact equivalent of all the money he received from bank interest ?
2- If the answer to the first question is 'yes', then must he immediately give out any amounts as they become available (after providing basic needs for himself and his family) ?
i.e can this person buy things that are not strictly necessities ('Darooriyyaat' i.e. shelter, food, clothes, medicine, transportation) but that are still important ('haajaat', e.g. computer) ?
3- If the answer to the second part of the previous question is 'no', can this person perform hajj, before giving out the equivalent of this bank interest money, with any amounts that become available ?
Jazaakum Allahu khairan.

Answer:

Praise be to Allaah.

Allaah says (interpretation of the meaning):

“Those who eat riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytaan, leading him to insanity. That is because they say: ‘Trading is only like riba,’ whereas Allaah has permitted trading and forbidden riba. So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for his past; his case is for Allaah (to judge); but whoever returns (to riba), such are the dwellers of the Fire – they will abide therein.”

[al-Baqarah 2:275]

Ibn Katheer, may Allaah have mercy on him, said concerning the phrase So whosoever receives an admonition from his Lord and stops eating riba shall not be punished for his past: “This means: whoever hears that Allaah has forbidden riba should stop as soon as this ruling reaches him, but he can keep whatever he had received before, because Allaah says (interpretation of the meaning): ‘…Allaah has forgiven what is past…’ [al-Maa’idah 5:95]. Similarly, on the day of the Conquest of Makkah, the Prophet (peace and blessings of Allaah be upon him) said: ‘All riba owing from the time of Jaahiliyyah is under these two feet of mine… (when he abolished everything that was owed to the usurers except their capital), he did not command them to return the extra money they had received during the time of Jaahiliyyah. (The phrase) (Allaah) has forgiven what is past is akin to the phrase his case is for Allaah (to judge). Sa’eed ibn Jubayr and al-Saddi said: Shall not be punished for his past (means) for what he used to consume of riba before it was prohibited.”

(Tafseer Ibn Katheer; the material in brackets has been added for the purpose of clarification).

On the basis of the above, you do not have to repay the interest which you received before you found out that it is haraam, but whatever you have received since then must be repaid if you still have it. If it has become mixed with your own money and you do not know the amount, then try to estimate what you think is most likely, and pay that amount.

For more information please see Questions # 824 and 1606.

We ask Allaah to accept our repentance. May Allaah bless our Prophet Muhammad.

Islam Q&A
Sheikh Muhammed Salih Al-Munajjid

 

[Globalpeace]

Asslamo Allaikum,

Interest is very cleverly packaged & directed towards the cosnumers in the West (& Muslim countries) e.g. PCP's, loan consolidation, partial Bankruptcies etc. & to the best of knowledge all "incarnations" for it are impermissable for Muslims to participate into (taking or giving)...

Asking for more knowledgeable brothers/sisters to correct me

Interest is how the rich get richer & the poor poorer....There are many good-will individuals & organisations (Non-Muslims) who are against this exploitation of humans.

Jazakullah Khairun