Bharia Credit Cards vs. Conventional Credit Cards! Are Islamic Credit Cards Available?

Does the Islamic credit card have interest? Islamic banking services have now begun to become common in the ears of the public. It is good news for people who now have alternative choices from conventional bank products. One example of Bharia banking products is Bharia credit cards. What is the difference between Islamic credit cards vs. a conventional credit cards? Let’s take a quick look at Bharia credit cards and whether Islamic credit cards apply the interest system.


Bharia Credit Cards: Know and Understand

Bharia Credit Cards: Know and Understand

In addition to conventional banks, there is now a name for Islamic banks or Islamic financial institutions (LKS). As the name implies, these banks and financial institutions apply Bharia principles, which means that all rules and policies at the bank are regulated under Islamic principles and laws. The National Bharia Board now sees the potential of Islamic banking and continues to develop its products. With the increasingly varied Islamic banking products offered, other Bharia products are emerging, namely Bharia credit cards.

Islamic credit cards or commonly called bithaqah al-l’timan are basically credit cards with functions like other conventional credit cards. The difference is that Bharia credit cards are bound by applicable regulations with reference to Bharia principles and policies.

All Bharia credit card policies and policies are covered by the general provisions of the fatwa of the National Bharia Council – Indonesian Ulema Council (DSN-MUI) No. 54 / DSN-MUI / X / 2006, concerning Bharia credit cards.

In other words, Islamic and conventional credit cards have the same functions and benefits, but different policies and rules are applied according to their respective references. To get to know more about Islamic credit cards including the differences and the advantages when compared to conventional credit cards, Charles Swann will describe at a glance the credit card for you.


Benefits of Bharia Credit Cards

Benefits of Bharia Credit Cards

In general, the added value of Bharia credit cards rather than conventional credit cards is to allow customers to use credit card facilities that are truly in accordance with Bharia principles and provisions. So what are the other advantages? The following points will show some of the advantages of Islamic credit cards rather than conventional credit cards:

# 1 In accordance with Islamic Principles and Conditions

Indonesia is a country with a majority Islamic population, so the National Bharia Council – Indonesian Ulema Council issues a new banking product that is in accordance with Islamic rules. Therefore, Islamic credit cards have a number of transaction restrictions, for example, it is not permissible for transactions in pubs or discos or liquor purchase transactions.


The applicable Bharia principles prohibit several actions as follows:

  • There is usury or illegal profit-taking
  • Chance transactions occur
  • The existence of a transaction whose object is unclear
  • Transactions occur whose objects are prohibited in Islamic law
  • Transactions occur that cause injustice to other parties
  • The existence of hoarding practices


# 2 Application of the Contract Agreement rather than Interest

# 2 Application of the Contract Agreement rather than Interest

As mentioned in the previous point, there is no interest system in Islamic credit cards. Instead, the contract system is used in accordance with Islamic law. Thus, Islamic bank income is only based on the contract.


# 3 Charity System through Fines

If you have ever heard of late fees on a conventional credit card, then the fine Islamic credit card is called tawidh. Similar to conventional credit cards, money is calculated as a percentage of late bills including a fee issued by Islamic banks during the billing process.

The location of the difference is, if you are subject to fines or penalties on Islamic banks, then the money will be donated entirely to social institutions. Thus, if you are fined, it means you are doing good deeds.


Enjoy the Benefits of a Bharia Credit Card

Credit Card

Some policies in Islamic credit cards certainly provide comfort and benefits for you as a customer holding a card. If you already know and understand the difference between Islamic credit cards and conventional credit cards, you can choose according to your needs and preferences.

Do you have questions about vs. Islamic credit cards conventional credit cards? Leave your comment below. If you have questions, please submit your question in the column below. Our Financial Planner is ready to help you, thank you.

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