Why Selling Credit Cards is Not Haram in Islam
C.J Ahmed-27.04.2023
Credit card is a plastic cards that is used to purchase goods and services on a later date in other words, it is to purchase goods on credit and your money is not deducted during the purchase unlike a debit card. Using or selling a credit card is not haram in Islam because you are not paying interest in a credit card transaction unless there is a delay of payment.
Purchasing on Credit is Halal in Islam
A credit card is a a card that allows you to purchase something say, an item which you do not need to pay right now but can pay on a later date. This concept is not haram as there are authentic hadith permiting the purchasing goods on credit.
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
This is one of the most trickiest and controversial issue on credit cards and the argument is that a person who is getting a credit card must sign the agreement that he will pay the interest if he fails to pay before the stipulated date and quote the following hadiths,
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 month 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 reason cannot make the payment in due date and is charged for interest.?” The answer for this is with a few pragmatic solutions and one is,
Credit card is a plastic cards that is used to purchase goods and services on a later date in other words, it is to purchase goods on credit and your money is not deducted during the purchase unlike a debit card. Using or selling a credit card is not haram in Islam because you are not paying interest in a credit card transaction unless there is a delay of payment.
Purchasing on Credit is Halal in Islam
A credit card is a a card that allows you to purchase something say, an item which you do not need to pay right now but can pay on a later date. This concept is not haram as there are authentic hadith permiting the purchasing goods on credit.
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
This is one of the most trickiest and controversial issue on credit cards and the argument is that a person who is getting a credit card must sign the agreement that he will pay the interest if he fails to pay before the stipulated date and quote the following hadiths,
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 month 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 reason cannot make the payment in due date and is charged for interest.?” The answer for this is with a few pragmatic solutions and one is,
- To pay the interest using any interest you have especially that is paid by a bank in your bank account. For an example, if you have savings account,the bank will pay you interest depending on various 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 even 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.