Today’s society is increasingly spoiled by the presence of various banking products that can be a solution in the midst of uncertain economic conditions. One of the most popular banking products by many people is a credit card. Its presence is indeed very easy for users to meet various needs of life, ranging from primary, secondary, to tertiary.
Interestingly, if we have known credit cards only as conventional bank products, now Islamic banks also issue credit cards for their customers and non-customers.
Interest Substitution Agreement
His name is both a credit card, of course, has the same function as a non-cash payment instrument. However, Islamic credit cards do not know the name of the interest system like conventional bank credit cards. Instead, credit card products issued by the Islamic bank will use a system of various kinds that have been regulated in accordance with Sharia law.
Well, those of you who plan to have a sharia credit card, it’s good to know in advance the types of contracts on a sharia credit card so that it knows which one best suits your needs.
Excellence of Islamic Credit Cards
When seen in general, credit cards in conventional and sharia banking products have the same function. However, they certainly have distinct advantages, including:
1. In accordance with Islamic Values
The name is also an Islamic credit card, automatic use will also be guided by Islamic values. Sharia credit card users will be free from other usurious fees. In addition, Islamic credit cards also limit a number of transactions that do not reflect the value of Islam such as buying liquor, to going to clubs and so on.
2. Using a Non-Interest Covenant System
As already mentioned, in carrying out its role, Islamic credit cards do not recognize the term interest, but the contract. So, all Islamic bank revenue from the Islamic credit card product is purely obtained from the contract.
3. Fines Made Charitable
In a sharia credit card also has a payment system of penalty fees charged to customers if they experience delays when paying monthly fees. However, the cost of this fine will not be taken by the bank, but all the cost of the fine will be distributed to charitable institutions.
Feel the benefits
Every credit card offerings given by Islamic and conventional banks do have a number of different policies but still have the same function. However, before deciding to have a credit card, you should first understand which credit card question suits your wants and needs. That way, you as a user can feel and enjoy the full benefits of using a credit card.