Credit cards, Student loans
Fatwa No: 81128

  • Fatwa Date:10-7-1999 - Rabee' Al-Awwal 27, 1420
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Question

Asalam wa alikum. Is having credit Card Halal or Haram? There is interest in it (riba)and it's Haram . But in most of the trade transactions you have to use credit card in Canada. 2-If I want to study at the university there is a student loan Interest (Riba). Is it O.K to take a loan with (Riba) or Haram? jazakum allah kul khir

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

 

If the credit card used in commercial transactions involves Riba (interest and/or usury), then it is forbidden for a Muslim to use it, because Riba is forbidden, be it little or much. Allaah Says (what means): {But Allaah has permitted trade and has forbidden interest.} [Quran 2:275]

Allaah also Says (what means): {And if you do not, then be informed of a war [against you] from Allaah and His Messenger. But if you repent, you may have your principal-[thus] you do no wrong, nor are you wronged.}  [Quran 2:279]

Moreover, Ibn Mass'ood  may  Allaah  be  pleased  with  him narrated: "Allaah has cursed the one who consumes Riba (i.e. usury or interest), the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” He  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said: "All of them are equal in sin.” [Muslim]

As for your statement that this card helps in many business transactions, then this does not render it permissible. A person resorts to dealing with Riba in case of necessity but the necessity is not a sound reason for making Riba permissible.

As regards the ruling of studying in the university with Riba, it has the same ruling as the ruling on transactions with Riba, meaning that they are both forbidden.

Allaah Knows best.

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