The concept of halal credit cards in Islam - does such a thing even exist in the first place when paying interest is not acceptable?
Credit card companies charge money through a variety of means. The credit card companies get their money in the form of interest rates, annual fees, transfer balance transaction fees, foreign cuurency transaction fees or late fees.
Different credit card companies may offer multiple credit cards promotions throughout the year. When a credit card company is looking for a new customer, they offer excellent promotions to hook the customers. The credit card companies may offer special promotions to enroll new customers. The special promotions may involve low interest rates to zero interest rates that are only for a specific duration, typically for a few months to a year, depending on type of credit card.
A Muslim may avoid paying interest (usury) by applying for a new credit card, and take the money for the introductory period which does not carry any interest rate.
At a zero interest rate, the debt on the credit card would not grow at all, and the large amounts of money spent in servicing the debt could be used to pay it off.
There is actually a system a Muslim can use to take advantage of the zero-interest credit card offers without going against the Islamic rules of not paying interest.
For more information on how a Muslim can actually do this in a halal way, please email us with a request for more information at ramadanblog [at] gmail.com or subscribe to us via Feedbuner in the box below this article.
Read what the Holy Quran has said about Interest:
Those who devour usury will not stand except as stands one whom the devil by his touch has driven to madness. That is because they say: Trade is like usury: but Allah has permitted trade and forbidden usury.... Allah will deprive usury of all blessing, but will give increase for deeds of charity, for He loves not any ungrateful sinner.... O you who believe, fear Allah and give up what remains of your demand for usury, if you are indeed believers. If you do it not, take notice of war from Allah and His messenger, but if you repent you shall have your capital sums; deal not unjustly, and you shall not be dealt with unjustly. And if the debtor is in difficulty, grant him time til it is easy for him to repay. But if you remit it by way of charity, that is best for you if you only knew.
[Surah al Baqarah, verse 275-280 ].
