brighten
seeker of knowledge
: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.
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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.”