What is the ruling on credit cards and purchasing with them?

The questioner : Okay, here in America there are cards called credit cards. They are used to buy goods. The card is like an ID, for example; you go to the shop if you are afraid of carrying money.

The Shaykh : Yes, indeed.

The questioner : This chair.

The Shaykh : Yes, indeed.

The questioner : And wherever you go, you buy whatever you want on this card.

The Shaykh : Yes, indeed.

The questioner : This card, of course, there are types of cards. Some of these types require you to pay, there is no god but Allah, an amount of money annually on this card if you use it and if you do not use it, and if you delay in paying the installment. You pay riba (usury or interest).

The Shaykh : That is it, it is written from its title that it is not permissible. It is not permissible.

The questioner : It is not permissible, and even if you do not pay riba, meaning if you paid the price.

The Shaykh : No, you say it is necessary to pay the riba, you say it is necessary to pay the riba.

The questioner : No, no, no, if you delay in repayment, for example. You have a period of one month.

The Shaykh : Yes. Yes.

The questioner : Except.

The Shaykh : This is not permissible, I tell you.

The questioner : Pay what is due on it, he tells me pay what is due on it. Yes, indeed. Hello, hello. Pay an annual amount as a subscription, but if you do not pay the amount that is due on you, for example, you bought a car and did not pay the price, the card goes away from you and you do not pay riba.

The Shaykh : The card is taken from him, meaning.

The questioner : It is withdrawn from him, some.

The Shaykh : Yes, and he does not pay riba. Okay, in the example of the car, did he buy it for cash or for an installment price?

The questioner : Yes, this is another matter.

The Shaykh : This is another matter, but it is closely related to the first one.

The questioner : Give me another example, because is the deferred payment haram? I know that?

The Shaykh : Well done, give me the other example.

The questioner : Another, there is no god but Allah, I bought a pair of pants, for example, for example, my lord, for example.

The Shaykh : Yes, may Allah protect you from it.

The questioner : So, amen, but I considered it, for example, meaning. Okay. Yes.

The Shaykh : Stay in your place, do not change the example, but it is half because half of it is deferred.

The questioner : The price of the pants, for example, is five dollars.

The Shaykh : Okay.

The questioner : Cash, and if you pay deferred.

The Shaykh : This is light. Yes, this is the one who sets the price, does he sell in this way at the installment price or at the cash price? This is equal in the view of the buyer, but in the view of the seller, it is permissible that he set the price at the installment price.

The questioner : The prices are fixed, Shaykh.

The Shaykh : I know, my brother, but the one who set the price is the merchant, is that not so?

The questioner : He set the price.

The Shaykh : The merchant, is he not the one who sets the price? We return and say this merchant, I will change your example. In some countries, some large merchants sell their cars at one price, the cash price and the installment price.

The questioner : I heard this example on the tape for Kuwait, meaning.

The Shaykh : Ah, good, and you did very well. So this does not take the issue out of the violation of the Shari'ah ruling by him unifying the price, because as you heard on the tape and you remember now, this merchant used to oppress half of his customers.

The questioner : So-and-so oppresses.

The Shaykh : Now he oppresses everyone, yes. So these, you have, are selling half cash and half installment. If the installment half is done in the Kuwaiti way, it will mean, stay in your place, meaning he committed the haram. But the merchants among you are known to be disbelievers and that they do not prohibit or permit. In that case, the issue concerns the buyer. So the buyer should be cautious that he is not taken by way of riba while he is unaware. This is what can be said in such a form that you presented.

The questioner : Meaning this card that I use to buy these items.

The Shaykh : Oh.

The questioner : Meaning is it permissible in this case?

The Shaykh : I do not know, I am painting the picture for you. If the value of the card is calculated because of this addition.

The questioner : No, it is not calculated, I am sure, I mean.

The Shaykh : Where did this card come from? Where did you get this card, for example?

The questioner : From a company.

The Shaykh : Yes, does the company in your opinion make a card for free or for nothing? An annual subscription for whom? Ha. Meaning the one who takes the card pays an annual subscription. The one who takes the card pays an annual subscription.

The questioner : We pay the purchase, the sweet, if he used the card and if he did not use it.

The Shaykh : Okay, in the first picture you said he bought the car and then did not pay, did not pay? What else?

The questioner : If he did not pay the price, for example.

The Shaykh : From what?

The questioner : From the pants or the car, he does not pay riba, meaning the card goes, the card is withdrawn from him.

The Shaykh : Yes, and the car is with him.

The questioner : No, the car goes.

The Shaykh : How does it go? How does it go?

The questioner : Meaning the company takes it.

The Shaykh : Yes, he used it.

The questioner : He used it, but that is it, he declares bankruptcy and the company takes the car.

The Shaykh : Meaning the issue is strange. He would not have paid this buyer something and used it for one, two, three years and it became difficult and he did not pay the value of the car, the company would take the car from him even if it was smashed to pieces, or would it pursue him legally for its price.

The questioner : No, in America he declares bankruptcy, even if he has a hundred thousand on him, he declares bankruptcy that he cannot pay.

The Shaykh : And he is not bankrupt.

The questioner : No. Ah. Ha?

The Shaykh : My brother, the one who does not want to pay the riba, how does he equalize it? I understand from your words that he must declare bankruptcy.

The questioner : This question, if Allah wills, Shaykh, I will send it to my brother, he will let.

The Shaykh : Okay, okay, okay.

The questioner: If Allah wills, if Allah wills.

The Shaykh : Where is the second, it became twelve.

The questioner : To earn the reward, Shaykh.

The Shaykh : It is so, but do not forbid me with your words.