Modern people is now transitioning to the cashless community. It’s where people prefers to use cards to make payment that they don’t bother bringing cash. This is undeniably safer and more convenient. One of those cards appear in the form of credit card. Speaking of which, we’re going to talk about the rules of using credit cards in Islam.
Before it, we would like to give a short introduction on why credit cards are highly popular among the society. When you buy something and use credit card for the payment, you get lower price than the original price.
Credit cards usually have partnership with certain merchant so the costumers get many discount. Also read Reasons For The Prohibition of Riba In Islam
On the other hand, we know that credit card is close to riba. Here are further explanation regarding that matter.
- Credit Card is a New Form of Riba
In the Islamic view, credit card is the new form of riba, based on the transaction. It consumes people’s wealth in an unlawful manner, luring them into sins by contaminating their income and dealings. Credit card is on the same page with riba, just like how the Jahiliyyah did in the past.
Also, it doesn’t matter whether you pay it on time or overdue. You have to pay the interest, and riba lies in those part.
- It Doesn’t Matter Even If You Pay within the Limit
Having and using credit cards is like taking loan from bank, which you have to pay in the meantime along with the interest. But because you’re happy while doing it, you don’t really feel like in debt. But when the due is coming, you come to realize that, yes, you’re on debt.
What makes credit card haram in Islam is because of the interest you have to pay. The bank doesn’t care whether you pay on time or not, when the time is due, you must pay along with the interest. Also read Misconceptions about Islam
- Credit Card Contract is Something Forbidden in Islam
If you reread your credit card contract, you’ll find a clause that says you are obliged to pay interest if you delay the payment. In fact, you still have to pay the interest when you pay before the due.
This kind of transaction is dubbed haram in Islam, as it involves interest. In Islam, interest is riba, while riba is something Allah SWT had directly forbid. Any Muslim should not fall in this kind of contract.
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- Islam Has a Clear Views About Riba
“And whatever riba you give so that it may increase in the wealth of the people, it does not increase with Allah.” (30:39)
From the verse above, you know that riba is haram. But it refers to conventional riba, from which you increase your wealth. However, as time passed and technology has advanced, riba appears is more various form, one of them is credit card.
Allah SWT gives no tolerance to His servants who involve himself in a riba transaction, so if you want to win His favor, you better stay away from it. Also read Most Destructive Sins in Islam
- Credit Card with No Interest is Halal
There is one condition in which credit cards become halal: when there is no interest involved. But surely it’s highly impossible. Credit cards without interest are not credit cards. The bank take out profit from the interest the user paid.
- Transaction Using Credit Cards Fall Beyond Prohibition
People feels convenient using credit cards because they buy something but they pay for later. This is similar with debt, where you pay in the future. But the different lies in the interest. According to Sharia, there should be no interest in debt or any transaction.
While credit card transaction involve third party—bank that released the credit card—and it’s forbidden. Not because there are three person in one transaction, but because the essence of transaction falls behind the prohibition. It violates the Sharia law. Also read Law of Treated with Haram Money in Islam
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- Muslims Should Not be Tricked with the Convenience
Using credit cards indeed gives you more convenience than using cash as payment. If you want to buy something but you don’t have enough money at the moment, pay with the credit card and you can take home whatever it is.
Muslims should not be tricked by this convenience. As explained above, transaction using credit cards is haram. It’s a new form of riba. Allah SWT has stated firmly inside the Holy Quran that someone who is doing riba or involved in riba will not enter Jannah.
- Credit Card Puts You in an Endless Debt
Credit card is debt. If you have it, you are in debt. If you use it, you add your debt. If you reach your limit, you put yourself in an endless debt. It will an endless circle of debt, from which you can’t save yourself ever.
Credit card interest is going of every years. Means you have to pay more and more as the time pass. Beside riba, debt is something that Allah SWT. Muslims should never put themselves in debt unless they have no other choice. Also read Bad Impacts of Debt in Islam
- Using Debit Card is Better
Modern people feel convenient using cards t pay. Instead of credit, use debit card. Paying using your debit cards means you are paying with your own money without being in debt to everyone. Safe and free of riba.
- Avoid Using Credit Cards As Much As Possible
If you really want to be an obedient Muslims, try not to use credit card as much as possible. Pray to Allah SWT to strengthen your heart. Indeed, Allah’s help is with everyone who ask for it.
So those are the explanation about rule of using credit cards in Islam. Hopefully the information is useful for all of us.