Interest-Free Financial Transactions - Credit Cards & Today's Fiancial Crisis

Peace of God and His mercy to you.

Free Quran

Credit cards are not interest-free. A person using a credit card is borrowing money from the bank. At the end of the month the person pays the bank back the money s/he borrowed in addition to the fee of borrowing the money! This interest is forbidden in Islam because it is unfair. Many people lose their jobs and get jailed because of the interest involved in many financial transactions.

Here is a fatwa explaining the allowed credit cards in Islamic Shari'a:

Question:
What is your opinion on the credit cards of the Faisal Islamic Bank?.

Answer:
Praise be to Allaah.

There is nothing wrong with using a credit card if it is free of the following things that are forbidden according to sharee’ah:

1- Stipulating payment of interest or a penalty in the event of late payment.

2- Charging fees for issuing an uncovered card that are greater than the actual costs involved.

3- Charging a percentage of money withdrawn if the card is not covered. It is permissible to charge the actual costs only; anything more than that is riba.

4- Buying gold, silver and other currencies with it.

5- Seller adding a percentage that the bank requires him to take from the purchaser, without the purchaser being aware of that.

See also the answer to question no. 13725 and 103187.

We do not know anything about the credit card offered by the Faisal Islamic Bank.

And Allaah knows best.

God says in the Holy Quran regarding the interest (riba):

Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein. (275) Allah hath blighted usury and made almsgiving fruitful. Allah loveth not the impious and guilty. (276) Lo! those who believe and do good works and establish worship and pay the poor-due, their reward is with their Lord and there shall no fear come upon them neither shall they grieve. (277) O ye who believe! Observe your duty to Allah, and give up what remaineth (due to you) from usury, if ye are (in truth) believers. (278) And if ye do not, then be warned of war (against you) from Allah and His messenger. And if ye repent, then ye have your principal (without interest). Wrong not, and ye shall not be wronged. (279) And if the debtor is in straitened circumstances, then (let there be) postponement to (the time of) ease; and that ye remit the debt as almsgiving would be better for you if ye did but know. (280) The Cow 2:275-280

And what could be the cause of the world's financial crisis other than interest?