Saudi Gazette The temptation to apply for a credit card can be quite strong, especially if you love shopping. However, you should think twice before you become a credit card holder. Banks are always pressing their clients to apply for a credit card and they promise a variety of bonuses, gifts, and facilitations. Some show you a booklet of fancy stores and restaurants that will offer you 15% discount when you use your credit card. If you were to take a closer look, in most cases you rarely visit those fancy shops anyway. And often, most discounts are for hotels and not necessarily for your favorite stores and restaurants. So the big question is, do you really need a credit card? For some, it may be essential. Those who travel frequently find it easier and safer to carry a plastic card rather than trying to figure out where to conceal a wad of green notes. Students and professionals may need it to order specific books or items over the internet because they may not find what they are looking for in local stores and any on-line purchase requires a credit card. It also facilitates several transactions like making hotel reservations and car rentals while traveling to another city or country, purchasing air-line tickets on the phone or over the internet, and paying tuition fees for international institutes. But if you wish to acquire a credit card because you like how the shiny silver or golden card looks in your wallet or so that you can shop without limits, then it's not a good idea to apply for one. The trick behind credit cards is that it allows you to buy items, even when you know you cannot afford them at the moment. It encourages shoppers to buy on impulse, without thinking or carefully considering exactly how much cash they have on hand or how much money is left in their bank account. According to Dave Ramsey, a financial expert in America, consumers tend to spend 12% more money when they shop with credit cards than they would spend if shopping with cash. The actual problem begins when the consumers purchase an item using their credit card and fail to pay the bank or credit card company the full amount before the designated time is over. Each time the consumer delays a payment, he/she will end up paying interest, and the amount increases over time. Several families who fell into the habit of overspending with credit cards and failed to return payments on time, ended up in credit card debt. Islamic scholars have disputed on whether credit cards are permissible or prohibited in Islam. Some are of the opinion that credit cards can be used as long as there is no delay in the payment. Others strictly forbid the use of credit cards, especially when the bank requests an annual charge for the card. This cost is a form of interest and is paid by the user regardless of whether he/she pays the bills on time or not. Also, the user enters into a contract with the bank which means that he/she is obliged to pay interest if the payment is postponed. Shaykh Ibn ‘Uthaimeen (may Allah have mercy on him) said, “A contract of this type is not permissible, because it involves interest which is the price of the card, and it also means committing to pay interest if payment is delayed.” To be on the safe side, before signing any credit card contract, one must take a copy of it to a local scholar to get his opinion. Some contracts in Islamic countries, do not require an annual fee and may not contain the clause that necessitates you to pay interest in the case of delayed payments. In uncertainty, we must reflect on the wise words of Prophet Muhammad (peace be upon him), who said, “Leave that which causes you doubt for that which does not cause you doubt.” [Tirmidhi] __
