Jurisprudence and Islamic Rulings -Part 6

Chapter 5

Transactions

Business and Finance: Credit Cards

13725: Using credit cards is haraam even if you pay up within the time limit

Question:

I heard that using credit cards is haraam, but if I am sure that I am going to pay the bank within the time limit, so the bank will not charge any interest, is this also regarded as haraam?.

Answer:

Praise be to Allaah.

What you have heard about credit cards being haraam is correct. That has already been discussed in question no. (13735)

Using them is haraam even if the user is certain that he will pay the bank within the time limit.

It has already been explained in the answer to the question mentioned that they are haraam because the bank lends money to the user in return for interest, and this interest is the price of the annual subscription to the credit card, as well as other interest charges which are to be paid to the bank if the user is late in paying.

The cost of the card is a kind of riba which the user pays to the bank, and this riba is paid by the user whether he pays on time or not.

Also, the user enters into a contract with the bank which means that he is obliged to pay interest if he delays payment. This is also haraam, because it is not permissible for a Muslim to commit himself to doing something that Allaah has forbidden.

The user may think that he can pay up on time, but then something happens to him that prevents him from doing so, so he pays riba to the bank.

Shaykh Ibn `Uthaymeen (may Allaah have mercy on him) said concerning this kind of contract:

A contract of this type is not permissible, because it involves riba which is the price of the card, and it also means committing to pay interest if payment is delayed.

In another fatwa he said:

This transaction is haraam, because the one who enters into it commits himself to paying riba if he does not pay on time. This is an invalid commitment, even if he believes or thinks it most likely that he will pay it before the time is up, because circumstances may change and he may not be able to pay it off. This is a matter that is in the future, and no one knows what will happen to him in the future. So dealings of this type are haraam. And Allaah knows best. Islam Q&A (www.islam-qa.com)

13735: Credit cards

Question:

Nowadays many people use "Credit" cards (credit cards) which are issued by some of the banks. The gold cards cost 548 riyals and the silver cards cost 245 riyals. This amount is paid to the bank annually by the person who uses the Credit card, like an annual subscription.
The way these cards are used is that the card allows the bearer to withdraw as much money as he wants from the bank's branches as a loan, and he has to repay the same amount of money within a period not exceeding fifty-four days. If he does not pay it back within the period stated, the bank will charge interest of 1.95 riyals for each hundred riyals of money withdrawn. The bank also charges 3.50 riyals for every hundred riyals of cash withdrawn by the carrier of the card, or a minimum of 45 riyals for every cash withdrawal.

The carrier of this card is also entitled to buy products in stores that the bank deals with, without paying any cash, and it becomes a loan from the bank. If he delays paying off the cost of what he has bought for more than fifty-four days, they will charge 1.95 riyals for every hundred of the price of the products purchased from the stores that the bank deals with.

What is the ruling on using these cards and subscribing annually to the bank in order to use these cards?.

Answer:

Praise be to Allaah.

This question was put to the Standing Committee, who replied:

If the credit card is as described, then it is a new kind of riba-based transaction and of consuming people's wealth unlawfully, making them fall into sin and contaminating their earnings and dealings. It comes under the same rulings as the riba of the Jaahiliyyah which is forbidden in sharee'ah. (Either you pay it off at the appointed time or you increase the amount). Hence it is not permissible to issue such cards or to use them. And Allaah is the Source of strength. May Allaah send blessings and peace upon our Prophet Muhammad and his family and companions.

Shaykh Ibn `Uthaymeen (may Allaah have mercy on him) was asked about this and he said:

The answer is that a contract of this type is not permissible, because it involves riba which is the price of the card, and it also means committing to pay interest if payment is delayed.

Islam Q&A (www.islam-qa.com)

6847: Using a credit card to get married

Question:

I have to go backhome next month after 5year and have to get married but i dont have mony and i have no one who can give me a loan can i take money from my credit card i have no other way pleas give me some ans.

Answer:

Praise be to Allaah.

Riba (usury, interest) is one of the things that are definitively forbidden in Islamic sharee'ah.

1 _ Allaah says (interpretation of the meaning):

"Allaah has permitted trading and forbidden Ribaa. So whosoever receives an admonition from his Lord and stops eating Ribaa, shall not be punished for the past; his case is for Allaah (to judge); but whoever returns (to Ribaa), such are the dwellers of the Fire — they will abide therein"

[al-Baqarah 2:275]

2 _ And Allaah says (interpretation of the meaning):

"O you who believe! Fear Allaah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers"

[al-Baqarah 2:278]

3 _ It was narrated that `Awn ibn Abi Juhayfah said: "I saw my father buying a slave whose profession was cupping, and he ordered that his tools be broken. I asked him about that and he said that the Messenger of Allaah (peace and blessings of Allaah be upon him) forbade the price of blood, the price of a dog and the earnings of a prostitute; he cursed the woman who does tattooing and the one who asks for it to be done, and the one who consumes riba and the one who pays it, and he cursed the one who makes images."

(Narrated by al-Bukhaari, 2123).

It was narrated that `Abd-Allaah ibn Mas'ood (may Allaah be pleased with him) said: The Messenger of Allaah (peace and blessings of Allaah be upon him) cursed those who consume riba and those who pay it.

(Narrated by Muslim, 1597).

4 _ It was narrated from Abu Hurayrah (may Allaah be pleased with him) that the Prophet (peace and blessings of Allaah be upon him) said: ""Avoid the seven things that doom a person to Hell." They said, "O Messenger of Allaah, what are they?" He said, "Associating others with Allaah (shirk); witchcraft (sihr); killing a soul whom Allaah has forbidden to kill, except for a lawful reason; consuming riba; consuming the property of orphans; fleeing from the battlefield; and slandering chaste and innocent believing women." (Narrated by al-Bukhaari, 2615; Muslim, 89).

5 _ It was narrated that Samurah ibn Jundub said: The Prophet (peace and blessings of Allaah be upon him) said: "Tonight I saw (in a dream) two men who came to me and took me out to a holy land. We went on until we came to a river of blood, in which a man was standing, and on the riverbank there was a man with stones in front of him. The man who was in the river came forward, and when he wanted to climb out, the other man threw a stone in his mouth and sent him back to where he came from. He did that every time the man wanted to come out, throwing a stone into his mouth to make him go back. I said, `What is this?' They said, `The one who you saw in the river is the one who consumed riba." (Narrated by al-Bukhaari, 1979)

There is unanimous agreement (among the scholars) that riba is haraam, and credit cards come under the heading of riba. See questions no. 11179 and 5540.

Hence we do not think that we can offer the questioner any better advice than the advice of the Prophet (peace and blessings of Allaah be upon him), which is to fast so that he can calm himself down and to get used to worship, and to make it difficult for the Shaytaan to find any way to influence him.

It was narrated that Ibn Mas'ood (may Allaah be pleased with him) said: The Prophet (peace and blessings of Allaah be upon him) said to us: "O young men, whoever among you can afford to get married, let him do so, and whoever cannot do that, then let him fast, for it will be a shield for him."

(Narrated by al-Bukhaari, 4778; Muslim, 1400)

A shield means that it will protect him from falling into sin.

See also questions no. 590, 665, 3402

And Allaah knows best.

Islam Q&A (www.islam-qa.com)

3402: Having an interest-based credit card in cases of necessity

Question:

In my area one of the requirements for renting a car is to have a credit card. You don't have to charge anything on the card, you just must present it for safety precautions. When the car is returned you can pay cash and nothing is ever charge to the card. So, I would like to know, is it halal to get a credit card for this purpose.

Answer:

Praise be to Allaah.

The basic principle is that interest-based transactions are haraam and it is not permissible to engage in them. This includes the conditions mentioned in the contracts for credit cards. In some countries they rely a great deal on these credit cards, and you can hardly find anyone who does not use them. We put the following question to Shaykh Muhammad ibn Saalih al-`Uthaymeen:

Credit cards include conditions based on riba (interest/usury) _ if you delay payments, they charge an extra penalty. But in the place where I live in America, I cannot rent a car or a shop or use many other services unless I have a credit card. If I do not use a credit card, I will suffer unbearable hardship. If I commit myself to make the payments within a certain time limit, so that I do not have to pay the interest charges, will this allow me to have a credit card and thus relieve some of the hardship I am facing?

The shaykh, may Allaah preserve him, answered as follows:

If the hardship he is facing is certain, and the likelihood that he will delay payments is remote, then I hope there is nothing wrong with him having the credit card.

Question:

Do the conditions relating to interest make a transaction invalid or not?

Answer:

If a contract contains an invalid condition, this does not invalidate the entire contract, for a number of reasons:

(1) necessity, (2) because it does not really affect anything.

The man thinks that he is going to make the payments before interest is due. Because this is more likely than the condition of having to pay interest, and because it is necessary _ which is the main point _ I hope that there is nothing wrong with it. We have a definite matter _ necessity _ and a matter which is not necessarily going to happen _ which is delay in payment _ and the matter that is definite takes precedence over something which may not even happen. And Allaah knows best.

Shaykh Muhammad ibn Saalih al-`Uthaymeen (www.islam-qa.com)

11179: Using credit cards to withdraw money

Question:

Banks give their clients a card called "Visa" which enables the customer to withdraw money from the bank even if there is no money in his account at that time, on the basis that after a specific amount of time has passed, he will repay the bank, and if he does not pay within this set time, the bank will charge interest, more than the amount withdrawn. The customer also pays an annual fee for using this card. Please tell us the ruling on using these cards, may Allaah reward you with good.

Answer:

Praise be to Allaah.

This transaction is haraam, because it involves a commitment to pay ribaa (interest) if one does not pay within a certain time. This is an invalid commitment even if a person believes or thinks it most likely that he will pay before the time is up, because things may change and he may not be able to fulfil the commitment. This is a matter which has to do with the future and man does not know what will happen to him in the future. So this kind of transaction is haraam.

And Allaah knows best.

Shaykh Muhammad ibn Saalih al-`Uthaymeen, Al-Da'wah magazine, issue # 1754, p. 37 (www.islam-qa.com)

10826: Buying with debit cards

Question:

I hope that you will beable to advise us about using Saudi Net cards [debit cards] when buying things that we need from the stores. These cards are used in the following manner: when the amount of the purchase has been added up, for example 150 riyaals, the card is given to the vendor and he passes ("swipes") it through a machine that he has in his store. The value of the purchase is then taken instantly, by transferring the amount from the purchaser's account to the vendor's account in the same instant, i.e., before the buyer leaves the shop.

Answer:

Praise be to Allaah. If the matter is as you describe, there is no reason why these cards should not be used, if the purchaser has sufficient funds in his account to cover the required amount.

And Allaah is the source of strength. May Allaah bless our Prophet Muhammad and his family and companions, and grant them peace.

Standing Committee for Academic Research and Issuing Fatwaas. Fataawaa al-Lajnah al-Daa'imah, 13/527

(www.islam-qa.com)

5540: Paying tuition fees with a riba-based credit card

Question:

I am very much worried about my education. I am doing MASSAHALLAH very good results but my problem is....I do not have enough money to pay my tution. I am not a USA citizen and thus do not get much benefits. They let me study 2 semisters in a condition that I have to give the tution fee back after working throughout this summer. Now the fee office in the university gave me a deadline to pay the tution fee of about 00. If I am unable to pay that amount then my education will stop here. I am trying my best to get a job this summer but have not got yet. My question is, if I am unable to earn 00 within 3 months .... can I use my credit card to pay the tution fee back. I know I cannot pay the money to the bank and will have to give interest. Moreover, I am engaged with a girl who's parents have agreed to get us married. If my education stop, her parents will never let me marry her. All together I am very depressed about it. Please advise me what I should do in this circumstance.

Answer:

Praise be to Allaah.

It is not permissible for a Muslim to pay riba (interest), no matter what the circumstances. The one who consumes riba and the one who pays it are both in grave danger, as it says in the hadeeth that the Prophet (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the one who records it and the two who witness it, and he said, "They are all the same."

Would you like to be among those who deserved to have the Prophet (peace and blessings of Allaah be upon him) pray that they will be expelled from the mercy of Allaah? For this would be an immense and incomparable loss.

Another point is that you should note that whoever gives up something for the sake of Allaah, Allaah will compensate him with something better than that. Whoever fears Allaah, Allaah will soon grant him independence by His grace, and will give him a way out from his difficulties, and will make things easier for him. Allaah chooses for His slave something which is better that that which the slave would choose for himself. Fear Allaah, put your trust in Him and do not expose yourself to His wrath. Allaah says (interpretation of the meaning):

"… and it may be that you dislike a thing which is good for you and that you like a thing which is bad for you. Allaah knows but you do not know" [al-Baqarah 2:216]

May Allaah help you to do that which He loves and is pleased with, and may He make things easier for you.

Islam Q&A Sheikh Muhammed Salih Al-Munajjid (www.islam-qa.com)

665: Forced by her husband to help him get a "Visa" (credit) card

Question:

Assalamu Alaikum , my question is I have had a credit card which I applied for when I needed to rent a car. I had been very careful not to exceed on this card what I could pay for every month so that I would not have to pay any interest. During one time of some difficulty I could not pay the entire bill and it incured the interest. After several months I was able to pay it off with the help of my husband who had also used it from time to time. After the bill was paid I told him that I wanted to get rid of the card so that we would not risk falling into this condition again. However my husband wanted me to apply for a card in his name since I was planning to gat rid of mine. He had previously had 2 credit cards of his own which he was unable to pay off. He became very angry and insulting, so to keep the peace I got it for him. He also said that he would be responsible for it if he couldn't pay it. I have not used the card at all and for the past 6 months he has not been able to pay the entire balance so for all that time it is gathering interest. my question is who is accountable before Allah for this card? Me because I gat it for him Or Him because he asked for it .

If I am responsible for it. What should I do about paying it off since he dosen't want me to work now and he is unable to make even the minimum payments?

Answer:

Praise be to Allaah.

You should repent to Allaah, may He be glorified, for helping your husband to do something sinful and wrong by getting this interest-based credit card. Allaah says (interpretation of the meaning): "… Help you one another in al-birr and al-taqwa (virtue, righteousness and piety); but do not help one another in sin and transgression…" [al-Maa'idah 5:2]. You should not have helped him to get this card or responded to his demand for your help, even though he insisted, because the Prophet (peace and blessings of Allaah be upon him) said: "There is no obedience to any created being if it involves disobedience to Allaah, may He be glorified." (Reported by Imaam Ahmad in Musnad `Ali; Saheeh al-Jaami', 7520). And Allaah knows best.

Islam Q&A

Sheikh Muhammed Salih Al-Munajjid (www.islam-qa.com)