Is credit card haram: Credit cards are incredibly popular and convenient for shoppers, but it includes interest, which is strictly prohibited in Islam. So the question arises Are credit cards halal or haram?
Although today most international sites accept credit cards only, due to the presence of interest rates, many Muslims are reluctant to use them for their daily use.
So in this blog post, we will answer your query is credit card halal in Islam and will also provide alternatives to using credit cards.
Is Credit Card Halal?
The short answer is No. Credit cards are not halal due to the presence of interest rates. As per Islamic teachings, taking or giving interest (riba) is haram.
In Islam, taking or giving interest is one of the major sins. Allah has addressed it in many verses of the Quran and has asked Muslims to stay away from taking or giving interest as much as possible.
Therefore, credit cards are also not allowed in Islam due to their interest rates.
Also note that if you think you can pay before the due date, and avoid paying interest, then also it credit cards are haram in Islam. This is because when you order the credit card, you sign the agreement stating that you will pay the interest, and the company can charge you with it anytime.
So at the time of ordering a credit card, you already agree to its interest rates which makes it haram in Islam. We’re all humans and might forget to pay before the due date, so avoiding using credit cards is best.
You can also learn is debit card halal.
Alternatives To Credit Cards
Here are some alternatives if you’re a Muslim and want to purchase something online without using a credit card.
1. Debit Card – Debit cards are the most halal and reliable option. A debit card fulfills all the requirements of Islam, as it doesn’t include interest, and you can only spend what is available in your account.
So if you’ve a debit card as a payment option, then it is certainly halal according to Islamic teachings, and you should go for it only.
2. Paypal – PayPal has been the most popular payment transfer website for many years. According to Islamic teachings, it doesn’t include any interest, so it is also halal. However, it charges a certain transaction fee, which you must pay to make the payment.
You can add your debit card or bank account to PayPal to make payments.
3. Cash On Delivery – This is the most traditional purchase method and is also halal in Islam. Here, you only need to pay at the time of delivery. Nowadays, an increasing number of online stores like Amazon are offering cash on delivery options.
4. Islamic Bank Credit Card – If you’ve no other option, you can opt for an Islamic Bank credit card with a riba-free feature. However, it’s important to note that only a few Islamic banks offer it, and you’ll have to pay certain fees, which vary from bank to bank.
These are some of the Islamic alternatives to credit cards. You can opt for these if you’re looking for a halal payment option.
If you’re confused about credit card cashback, you can learn is credit card cash back halal.
Why Is Credit Card Haram?
Credit cards are considered haram because they involve the paying or receiving of interest, which is strictly prohibited in Islam.
Interest rates are charged on credit card transactions, meaning that any purchases made using a credit card will incur additional charges that must be paid back to the credit card company.
In addition, some Islamic scholars argue that using credit cards goes against the concept of responsibility and living within one’s means, as it encourages people to spend money they do not have.
Also, if we look at the credit card system as a whole, it is based on the idea of debt and borrowing, which goes against the Islamic principle of avoiding unnecessary debt.
Also according to business gurus, credit card companies make it easy for consumers to overspend and get into debt by offering rewards, discounts, and other incentives.
Also see is cryptocurrency halal.
Q. Is credit card haram?
A. Yes, credit cards are haram in Islam due to the presence of interest rates.
Q. Is credit card haram mufti menk?
A. Yes, Mufti Menk has also clearly stated interest as Haram, which includes credit cards as well.
Q. Is using credit card haram?
A. Yes, using credit cards is haram in Islam due to the presence of interest, which is prohibited according to Islamic teachings.
Q. Is having a credit card haram?
A. When it is haram to use a credit card, then having a credit card is also haram in Islam.
Q. What does Islam say about credit?
A. Islam prohibits taking or giving interest, which credit cards have in them, so they are haram according to Islamic teachings.
Q. Is it halal to have a conventional credit card?
A. No, conventional credit cards are not halal in Islam due to the presence of interest rates.
Q. Can we have credit card in Islam?
A. No, Islam does not allow credit cards due to the presence of interest rates in them. You can opt for debit cards or other alternatives like Paypal or Cash on delivery to make payments.
Q. Why are credit cards haram?
A. Credit cards are haram in Islam because they involve interest, which is forbidden according to Islamic teachings.
Q. Is Paypal halal?
A. Yes, PayPal is considered halal because it follows the principles of Islamic finance. Paypal includes features such as charging fees instead of interest and transferring money without taking ownership of it, which makes it compliant with Islamic law. This has made PayPal a popular choice among Muslims who want to conduct digital transactions in accordance with their faith.
Q. Is Mastercard halal?
A. Mastercards are of two types, credit cards and debit cards. According to Islamic principles, using a credit card is considered haram due to the concept of interest involved in it. However, using a debit card is halal as long as there are no hidden fees or additional charges for late payments.
Q. Is it haram to have a credit card?
A. Yes, because when applying for a credit card, the cardholder agrees to pay interest on any outstanding balance. According to Islamic principles, charging or paying interest is considered haram. Therefore, using a credit card is not permissible in Islam.
In conclusion, credit cards are haram in Islam due to the presence of interest rates. Muslims must abide by Islamic teachings and avoid interest and riba.
If you’re looking for a halal payment option, then you can opt for debit cards, Paypal, or cash on delivery/Islamic Bank credit cards.
It is important to note that only a few Islamic banks offer riba-free credit cards, and you must pay certain fees, which vary from bank to bank.
The best option for a halal payment method is debit cards, as they don’t include any interest, and you can only spend what is available in your account.
We hope this article has shed some light on the topic of is credit card halal in Islam and the halal payment methods that one can opt for.
May Allah bless us all and give us the strength to be patient and follow His teachings. Ameen.