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Islamic Credit Cards
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Glossary

Haram

Forbidden under Islamic law.

حرامḥarām

Haram is the opposite of halal: an act that is prohibited and blameworthy. Riba is the clearest example in finance. AAOIFI Shariah Standard No. 3 clause 2/1/1 uses the word directly for a different act that people often overlook: 'Default in payment by a debtor who is capable of paying the debt is Haram'. So on an Islamic card the prohibition runs in both directions, at the bank for charging interest and at you for paying late when you could pay.

Related terms

HalalPermitted under Islamic law.MakruhDisliked but not forbidden: better avoided, no sin if you do it.RibaAny extra amount a lender gets back on top of what was lent, which Islamic law forbids.MushtabahDoubtful: a grey area where the ruling is unclear, which cautious people avoid.

Sources

  • AAOIFI Shariah Standard No. (3) clause 2/1/1

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