I’m often asked if credit cards are haram, and it’s a valid question. After all, credit cards are a form of debt, and debt is often seen as something that is haram.
Nowadays, almost everyone has a credit card or access to one. And there’s no denying that credit cards can be handy. But are they halal?
If you’re confused and searching are credit cards haram in Islam, then this post is for you.
We’ll explain what a credit card is, how it works, and whether or not it’s permissible in Islam with supporting evidence from Quran and Hadith.
Are Credit Cards Haram?
Yes, credit cards are haram. The reason why credit cards are haram is that they involve interest. And according to the Quran, interest is haram in any form.
Even if you think you’re being smart and paying your credit card balance in full every month, you’re still doing haram.
This is because, by the time you sign the agreement to get the credit card, you already agree to pay interest if you’re late. So even if you’re not late, you’re still ready for it if someday you miss it. There’s no escaping it.
Hence by signing the agreement, you’re already involved in usury, which is haram.
But there’s another reason why credit cards are haram, and that’s because of the way they’re used.
Credit cards are often used to buy things that we can’t afford. And this leads to debt, which is also haram.
Hence, almost all Muslim scholars agree that credit cards are haram in all situations.
If you’re willing to buy expensive stuff either by debit card or credit card, you must read is it haram to buy expensive stuff.
What Is A Credit Card?
A credit card is a plastic card that allows you to borrow money from a lender. The lender is usually a bank, and the money you borrow is called “credit.”
You can use this credit to make purchases, and then you can either pay off the credit in full at the end of the month or carry a balance and pay interest on it.
Your credit card company will charge you interest if you carry a balance. This interest is what makes credit cards haram. Also, you need to accept their terms and conditions when getting a credit card, which includes many other things that are haram.
Alternate Option To Credit Cards
If you’re looking for a halal alternative to credit cards, then you have two options:
- 1. Debit Cards
- 2. Islamic Bank Credit Cards
Debit cards are linked to your bank account, and you can only spend the money that you have. This makes them much safer and halal to use.
Islamic bank credit cards are also a halal option. These are credit cards that Islamic banks offer, and they don’t charge interest. Instead, they use a system of murabahah, which is permissible in Islam.
If you’re in to stock market, you can learn is Apple stock halal.
Fatwa On Credit Card
Many Islamic scholars have issued fatwas on credit cards, and they all agree that credit cards are haram.
Here are some notable fatwas:
1. The late Sheikh Ibn Baz, who was the grand mufti of Saudi Arabia, issued a fatwa forbidding the use of credit cards. He lastly said using a credit card is riba.
2. Sheikh Yusuf al-Qaradawi, one of the world’s most respected Islamic scholars, also issued a fatwa forbidding the use of credit cards.
3. The Fiqh Council of North America has also issued a fatwa forbidding the use of credit cards.
4. Dr. Zakir Naik, a world-renowned Islamic scholar, said credit cards are haraam.
5. Assim Al-Hakeem, another well-known Islamic scholar, has also said that credit cards are haraam.
So there’s no doubt that credit cards are haram. If you’re using one, then you should stop immediately and find a halal alternative, as shown above.
If you do finance on your new purchases like a car, you must read the Islamic view on is it haram to buy a car on finance.
Why Are Credit Cards Haram?
If you’re still confused about why is credit card haram, it’s because of the fact that you are agreeing to borrow money with interest.
Credit cards allow people to buy things on credit with a promise to pay back later with added interest.
This means that if someone doesn’t have enough money, he can borrow money from the bank and repay it when he has it, plus an extra fee of interest imposed by banks or any other lending institution.
Apart from the interest, credit cards also encourage people to spend more than they have in their pockets. This is because they perceive that they don’t need to pay back immediately and therefore feel like it isn’t real money.
Therefore, Islam considers credit cards as haram. It encourages Muslims not to use them and instead opt for other payment methods, such as cash, check, and debit cards.
A credit card might give you some discount or cashback, but it will cost you much more. You won’t be able to get out of this debt trap until and unless you pay the interest imposed by banks.
This is why Islam has forbidden using credit cards and other forms of borrowing involving interest. So, if you want to be a pious Muslim, then get rid of your credit card today.
You might also like knowing is life insurance haram.
Q. Is It Haram To Have A Credit Card?
Answer: Yes, credit cards are haram whether you use them or not and pay on time or not. This is because, by signing the agreement to get the credit card, you already agree to pay interest if you’re late, which is haram.
Q. Is Debit Card Haram?
Answer: No, debit cards are not haram. Debit cards are linked to your bank account, and you can only spend the money that you have. This makes them much safer and halal to use.
Q. Is Credit Card Haram Mufti Menk?
Answer: Yes, Mufti Menk has said that credit cards are haram. He is one of the most respected Islamic scholars in the world, and he has issued a fatwa forbidding the use of credit cards.
Q. Are Credit Card Rewards Haram?
Answer: Yes, credit card rewards are haram. This is because they’re usually based on spending more money, which leads to debt and interest. On the other hand, when using a credit card is haram, then how can rewards be halal.
Q. Is Selling Credit Cards Haram?
Answer: Yes, selling credit cards is haram. This is because you’re helping people to get access to something that’s haram. Even you should not sell it to Non-Muslims as well.
Q. Is Using Credit Card Haram In Islam?
Answer: Yes, using a credit card is haram in Islam. This is because when you sign the agreement to get the credit card, you already agree to pay interest if you’re late, which is haram.
Q. Is Visa And Mastercard Halal?
Answer: No, Visa and Mastercard are not halal. This is because they’re credit cards, and credit cards are haram.
Q. Are Credit Cards Riba?
Answer: Yes, credit cards are riba. Riba means interest, and credit cards usually have interest charges. So using credit cards is like taking out a loan with interest, which is haram.
Q. Is credit card halal?
Answer: No, credit card is not halal. Credit cards involve interest, which is haram according to Islamic teachings.
Q. Is having a credit card haram?
Answer: Yes, having a credit card is haram as it involves interest which is forbidden in the Quran. It also encourages people to spend more than they can afford and thus leads them into debt traps.
Q. Is Islamic credit card halal?
Answer: Islamic credit cards are halal as they do not involve interest and adhere to the laws of Sharia. Some banks and other financial institutions offer these credit cards. However, one should always read the terms and conditions carefully before opting for any kind of card.
Besides spending money using any card, if you like earning money from games, you can read here is earning money from games halal or haram.
Conclusion: Are Credit Cards Haram?
In conclusion, credit cards are haram. If you’re using one, then you should stop immediately and find a halal alternative, as shown above. And the sooner you stop using them, the better it is for your man.
I hope you get a clear answer on is it haram to have a credit card or use it. Please comment below if you have any doubts or questions. Jazakallah Khair!