3 Must Read Proofs Why Credit Cards Are Not Haram in Islam
C.J Ahmed-26.04.2023
The basic concept of a credit card is to pay for items not for purposes on credit hence the name. Unlike a debit card which h is deducted straight from your bank account, the credit card gives you time to pay for the amount purchased. As far as Islam is concerned, using credit cards does not clearly fall in to the black area which is haram but more towards a grey are.
Narrated `Aisha:
The Prophet (sal) purchased food grains from a Jew on credit and mortgaged his iron armor to him. (Bukhari)
Narrated Ya'la ibn Umayyah:
The Messenger of Allah (sal) said to me: “When my messengers come to you, give them thirty coats of mail, and thirty camels. I asked: Messenger of Allah, is it a loan with a guarantee of its return, or a loan to be paid back? He replied : It is a loan to be paid back.”(Abu Dawud-Graded Sahih by Albani)
It is clear that the prophet (al) and his compnions did take loans and the basis of the functioning of a credit card is to take for credit which is not haram
Abdullah ibn Mas’ud reported: The Prophet, peace and blessings be upon him, said, “Allah has cursed the one who consumes usury, its client, its witness, and its recorder. Usury and adultery do not become widespread among people but that they will become vulnerable to the punishment of Allah Almighty.”(Musnad Ahmed-GradedSahih by Zaid Shakir)
Ibn Mas'ud narrated:
"The Messenger of Allah (sal) cursed the one who consumed Riba, and the one who charged it, those who witnessed it, and the one who recorded it." (Tirmidhi-Graded Hasan Sahih by Imam Tirmidhi)
The bove hdiths mention that the person who takes interest, the one who charged interest and the one who witnessed it is cursed. The one who signs the agreement is not paying any interest but signing the agreement that if he/she delays the payment, they will have to pay an interest. The interest is charged every onth in a credit card if you delay payment for purchases which is known as Daily Periodic Rate (DPR). You can simply avoid the interest by paying the credit before the stipulated date. Now the question would arise, “ what is I due o some reson cannot make the payment in due date and is charged for interest.?” The answer for this is with a few pragmatic solutions ane one Is,
Umar Ibn Al-Khattab (rali) narrated that he heard the prophet (sal) say,
"Verily actions are by intentions, and for every person is what he intended” (Bukhari and Muslim)
A person can simply sign the agreement with the intention tht he will not pay the interest or that he will pay the credit before tha stipulated time. The agreement which the person is signing is not an Islamic agreement but is a piece of paper or electronic method made mostly by non-Muslims and arguing based on an agreement which is presented by a Kafir with out even witnesses cannot be taken as something for an argument to base a ruling in the Shariah. The agreement to pay internet is stimulated by the disbelievers in the bank just becaue the Muslim signs the agreement physically does not mean he/she agrees to the terms. You do not need to agree to the terms of the bank on paying interest.
It was narrated from ‘Ali (rali) that The Prophet (sal) said:
“There is no obedience to any human being if it involves disobedience to Allah.”( Bukhari and Muslim)
A Muslim is not bun to agree to the terms in the credit card agreement and a muslim can simply not accept it with his intention although the agreement is signed physically.
Asking a delay payment from a creditor is a violation of the person who takes credit and the person who is signing the agreement can be against the interest payment with his intention. There are also credit cards which do not charge interest such as Tawarruq and Mudharabah credit cards ut theses are only available in certain banks and georgraphies.
Conclusion
A credit card in it by itself is not haram because you are not paying interest when purchasing and you can simple pay the credit before the stipulated date before the interest is charged. The person who is signing the agreement could simply not comply to the agreement in his intentions.
Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said, “Verily, Allah does not look at your appearance or wealth, but rather He looks at your hearts and actions.”(Sahih Muslim)
The basic concept of a credit card is to pay for items not for purposes on credit hence the name. Unlike a debit card which h is deducted straight from your bank account, the credit card gives you time to pay for the amount purchased. As far as Islam is concerned, using credit cards does not clearly fall in to the black area which is haram but more towards a grey are.
- Purhasing on Credit is Halal in Islam
Narrated `Aisha:
The Prophet (sal) purchased food grains from a Jew on credit and mortgaged his iron armor to him. (Bukhari)
Narrated Ya'la ibn Umayyah:
The Messenger of Allah (sal) said to me: “When my messengers come to you, give them thirty coats of mail, and thirty camels. I asked: Messenger of Allah, is it a loan with a guarantee of its return, or a loan to be paid back? He replied : It is a loan to be paid back.”(Abu Dawud-Graded Sahih by Albani)
It is clear that the prophet (al) and his compnions did take loans and the basis of the functioning of a credit card is to take for credit which is not haram
- The Interest (Riba) Argument against Credit Cards
Abdullah ibn Mas’ud reported: The Prophet, peace and blessings be upon him, said, “Allah has cursed the one who consumes usury, its client, its witness, and its recorder. Usury and adultery do not become widespread among people but that they will become vulnerable to the punishment of Allah Almighty.”(Musnad Ahmed-GradedSahih by Zaid Shakir)
Ibn Mas'ud narrated:
"The Messenger of Allah (sal) cursed the one who consumed Riba, and the one who charged it, those who witnessed it, and the one who recorded it." (Tirmidhi-Graded Hasan Sahih by Imam Tirmidhi)
The bove hdiths mention that the person who takes interest, the one who charged interest and the one who witnessed it is cursed. The one who signs the agreement is not paying any interest but signing the agreement that if he/she delays the payment, they will have to pay an interest. The interest is charged every onth in a credit card if you delay payment for purchases which is known as Daily Periodic Rate (DPR). You can simply avoid the interest by paying the credit before the stipulated date. Now the question would arise, “ what is I due o some reson cannot make the payment in due date and is charged for interest.?” The answer for this is with a few pragmatic solutions ane one Is,
- To pay the interest using any interest you have especially that is paid by a bank in your bank account. For an eample, if you have savings account,the bank will pay you interest depending on vrious factor and you can pay that interest money to settle the credit crd interet.
- The other option will be to pay off the interest If you are capable becaue it is not your fult and it is not a sin evn if you paid the interest becue you intention was good. You are actually forced to pay interest and it is not a sin to do so.
- Actions Are Judged Acording to The Intentions
Umar Ibn Al-Khattab (rali) narrated that he heard the prophet (sal) say,
"Verily actions are by intentions, and for every person is what he intended” (Bukhari and Muslim)
A person can simply sign the agreement with the intention tht he will not pay the interest or that he will pay the credit before tha stipulated time. The agreement which the person is signing is not an Islamic agreement but is a piece of paper or electronic method made mostly by non-Muslims and arguing based on an agreement which is presented by a Kafir with out even witnesses cannot be taken as something for an argument to base a ruling in the Shariah. The agreement to pay internet is stimulated by the disbelievers in the bank just becaue the Muslim signs the agreement physically does not mean he/she agrees to the terms. You do not need to agree to the terms of the bank on paying interest.
It was narrated from ‘Ali (rali) that The Prophet (sal) said:
“There is no obedience to any human being if it involves disobedience to Allah.”( Bukhari and Muslim)
A Muslim is not bun to agree to the terms in the credit card agreement and a muslim can simply not accept it with his intention although the agreement is signed physically.
Asking a delay payment from a creditor is a violation of the person who takes credit and the person who is signing the agreement can be against the interest payment with his intention. There are also credit cards which do not charge interest such as Tawarruq and Mudharabah credit cards ut theses are only available in certain banks and georgraphies.
Conclusion
A credit card in it by itself is not haram because you are not paying interest when purchasing and you can simple pay the credit before the stipulated date before the interest is charged. The person who is signing the agreement could simply not comply to the agreement in his intentions.
Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said, “Verily, Allah does not look at your appearance or wealth, but rather He looks at your hearts and actions.”(Sahih Muslim)