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In the Name of God بسم الله
musa shakr

where can I get a shariah compliant credit card?

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6 hours ago, musa shakr said:

I live in the us and I need a credit card, where can I find one that's halal?

Here seem to be the options:

  1. A debit card I.e. it takes money you already have rather than giving you credit?
  2. Using any credit card and paying off the balance in full every month, so that you don't get into debt and therefore end up paying interest.

There is one other option that may work, but perhaps someone more knowledgeable could comment on how halal it is.

  1. Get a credit card and start using it as described in item 2 above.
  2. Establish a good credit history
  3. Get another card that offers you a balance transfer and transfer $x,000 into your primary card. Now the way that balance transfers work in the United Kingdom (I don't know about the U.S.), is that you are not technically charged 'an interest rate', rather a transfer fee currently 3% and the offer lasts for x months (typically 12-24 months) and way way below current bank overdraft interest rates and credit card interest rates
  4. Banks work on the basis that debtors will not be disciplined enough to pay off the debt and will end up paying the much higher interest rates that the card will revert to when the deal period is over.

This could be one way of getting credit, without technically paying interest, but as I said best to have this cleared with someone who knows their laws.

 

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7 hours ago, Haji 2003 said:

Here seem to be the options:

  1. A debit card I.e. it takes money you already have rather than giving you credit?
  2. Using any credit card and paying off the balance in full every month, so that you don't get into debt and therefore end up paying interest.

There is one other option that may work, but perhaps someone more knowledgeable could comment on how halal it is.

  1. Get a credit card and start using it as described in item 2 above.
  2. Establish a good credit history
  3. Get another card that offers you a balance transfer and transfer $x,000 into your primary card. Now the way that balance transfers work in the United Kingdom (I don't know about the U.S.), is that you are not technically charged 'an interest rate', rather a transfer fee currently 3% and the offer lasts for x months (typically 12-24 months) and way way below current bank overdraft interest rates and credit card interest rates
  4. Banks work on the basis that debtors will not be disciplined enough to pay off the debt and will end up paying the much higher interest rates that the card will revert to when the deal period is over.

This could be one way of getting credit, without technically paying interest, but as I said best to have this cleared with someone who knows their laws.

 

I need to be able to make the minimum payment for months. 

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54 minutes ago, musa shakr said:

I need to be able to make the minimum payment for months.

The minimum payment does not mean that the bill is being paid off in full every month and that means you will be charged interest, which you'd likely want to avoid. I don't think there are any credit cards that will NOT charge you interest if you have an outstanding balance at the end of the month.

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1 hour ago, Haji 2003 said:

The minimum payment does not mean that the bill is being paid off in full every month and that means you will be charged interest, which you'd likely want to avoid. I don't think there are any credit cards that will NOT charge you interest if you have an outstanding balance at the end of the month.

There are Islamic cards that charge a flat fee rather than interest.

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Theres no problem in using a credit card unless you have the intention on not paying off the balance. If you took time unintentionally it is not a big deal. Allah A’LAM, as I heard a scholar that follows Sayed Khamenei say on the radio.

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To be honest I really am finding that the Islamic rulings on the banking system should be reviewed. Theres too much loopholes and you have to go in circles to find the little loop where you’re allowed to take interest but under a different name or stuff like that. Its really making lives complicated especially for people who depend on banks and loans and businesses.

If it was black and white, no interest or yes its not an issue. But why the complications

Edited by BowTie

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