Exchanging Money with Credit Cards

Originally credit card serves as an international card, and the holder can use it in any country. If he had pulled their funds by using different foreign currencies in the currency value is used as a tool in calculating transactions later, then the party that issued the card will cover the cost of dispensing with foreign currencies, and then take it into account on the customer’s local currency with using a mutually agreed upon exchange rates. But suppose to pay the debt by using a different currency to the currency which is used as debt?

No doubt that direct seraphim’s constitutes legitimate money changing requirements, based on a Prophet:
“If the opposite sex, you sell at will please you, but it should be in cash as well.”

Exchange money at the expense of (debt) is the origin may be worth the price then, if both changers are in different locations, and there are no accounts payable between them. That is required so that one of them do not have dependents against the other.

Exchange in this way is sometimes made between money that is in possession but not in the location of the transaction, with the money in the location of the transaction, or it could be between two types of currencies that are equally in the ownership and not on the location of the transaction. This case is called penguin-interest or exchange of debt. This cutting can be done only in a minority of exchange only, while the remainder covered by other currencies, so that when the separation is no longer counting.

Basically that is the hadeeth of Ibn Umar p which tells, “We never sell camels in Naqie ‘. We sell gold coins, then get paid with silver coins. Or sell silver coins, and get paid with gold coins. I ask the Messenger of Allah a, he replied, “It’s okay, as long as is sold at a price that day, when you exit the transaction without anything in between you. “

Thus may do  with this currency difference, with a note that the calculations were performed based on the price of a standard day or day onsite cutting. The day of debiting accounts owned by the cardholder.

Credit Card Debt Can Be Updated (Revolving Credit Card)
These types of cards including the most popular in many developed countries. The owner of this card is given the option to cover all their bills in full within or part of the bill and the rest are given by way delayed, and may be included on the next bill. When he delayed payment, he will be subject to two kinds of flowers: First flower of delay, both the interest of the remaining funds that have not been covered. If he managed to cover the funds within the stipulated time, he was only exposed to one kind of flowers only, namely the interest payment delays. Funds withdrawn will not be limited if the owner continues to pay off credit card bills and interest simultaneously.

Explanation of the Global Credit Card About Itself

Perhaps the global problem of the occupation that most closely the nature of credit cards is that the card is generally composed of several transactions.

First, the transaction that links between the parties took out a card with the holder. This transaction consists of three elements: security, underwriting and lending. Party which issued the card has given assurance to the card holders in front of the merchant, to lend her the funds she pull through the card, the card holder has made the bank as a guarantor to pay the payment to the merchant.

Second, transactions between a card issued by the merchant. This transaction consists of two elements only: Warranties and guarantees. Party which issued the card has given assurance to merchants to pay all of its rights through the card, then the bank will collect payment from the cardholder later and put it into his account after the first cut administrative costs as agreed.

Third, the transaction between the cardholder to the merchant whose laws tailored to the sale and purchase or lease in accordance with the character of the transaction in addition to  system, the cardholders payment is delegated to the merchant selling goods to those who pulled out the card.

Various Types of Credit Cards

Credit cards are part of some form of financial cooperation card. Credit cards are divided into two:

1. Credit Card Loans Can not Be Updated (Charge Card)
Among the most prominent feature of this card there was cover the total funds withdrawn in leg-hood in a certain time allowed, or a portion of the funds. Normally the time allowed for no more than thirty days, but sometimes can reach two months. If the carrier card to pay late in the time allowed, he would be fined the bridge. And if he refuses to pay, its membership is revoked, the card is pulled back and raised the issue to court.

The occupation of Fiqh Issues Regarding Credit Cards.

It is clear that the law against something that is based on the results of the perception of these things. As detailed as what our knowledge on various issues related to credit cards, will determine seat tailplane us in trouble against a variety of transactions, known in Islamic jurisprudence and an explanation of its laws, lawful or unlawful, and to determine the various alternatives that prescribed when the results of research confirms.

This credit card-related form of three things that we will consider sequentially as follows:

First: Linkages Between the card with the issuing bank the Parties ‘Spending Card Transactions’.
Many studies have jurisprudence surrounding this relationship. Many have opinions that were born around the issue in various Fish Research Institute of the existence of this card as a loan from the issuing bank, or as a guarantee for implementing the various commitments of others, or become a guarantor to relate with others.

Possible combination of collateral, guarantors and the loan that’s closest to the theory to review this transaction. Because that is the real purpose of the existence of the card. Because before use, the card is a guarantee, and the promise of a loan and guarantors. But after being used in the real sense and the bank has to cover costs incurred to represent the client, that promise has become a reality so that it becomes a loan and guarantors in the real sense.

Credit cards are a means to shop that allows postponement of payment on the purchase of goods or services. The parties involved in the mechanism of credit cards are as follows:
1. Acquirer
Acquirer is a party that manages the use of credit cards.
2. Cardholder
Holders of the card consists of individuals who have complied with the procedures and requirements specified by the issuer to where it can be accepted as a member and entitled to use the card in accordance with its use.
3. publisher
Publishers may include banks, financial institutions, and other companies that serve and  a card issued in this case credit card.
4. merchant
Merchant is the party who accepts payment by credit card. Merchant may include supermarkets, small shops, and others.

Understanding and Use of Credit Cards

Maybe some of us have had the means of payment which we often call the Credit Card. Right now everyone is very easy to get it, it could be a single person can earn 2-5 credit cards at once.

Aya will discuss the problem of understanding in advance Credit Card:

According to the Expert Dictionary is defined: “cards issued by banks and the like to allow the bearer to purchase items needed by debt. While the Arab Economy in the dictionary explains, “a kind of special card issued by the bank-as-card expenditures, then the amount will be paid later. The bank will provide to its customers globally that account to be paid monthly, or to directly debited from his account that are still functioning.

Usefulness of Credit Card:

1). As a means of payment instead.

Credit cards can be used as a tool instead of payment, so we do not need to bring plenty of cash, which can be lost or at risk of falling on the road.

2). As a backup.

Credit cards can also be used as a reserve for unexpected needs, such as if a sudden there are families who are sick and need to be cared for in hospital, then the payment can use a credit card, this is not a hassle than if we had to go to the ATM first, or dilute money in the bank.

3). Help pay for household bills.

In the credit card bill there is one facility, meaning we can ask the credit card issuing bank to pay the bill at a time on account of: electricity, telecom invoice / cellular phones, taps bills, internet bills and other bills with the knowledge intansi who issued the bill. Thus, every month we are not busy paying to several agencies, but the payment can be done all at once via credit card, direct debit done every month.

The things that are less good than the above Credit Card usefulness :

1. Replace Tool For Payment

Weaknesses:

- That is if the type of consumer is very dangerous, because we are so difficult to control all the things we buy because we are still able to pay by Credit Card with a certain limit.

How to anticipate:

- By signing up all the needs that we had to meet at that time. For example, it is today. Many school children need (books, new uniforms, etc.) that we must fulfill. Make it a priority of our credit card usage is.

- Try us bring the credit card is only to places that provide these purposes we need. This serves to minimize the use of outer d  that we have set in early.

2. As a Backup

Weaknesses:

- Sometimes many public facilities are not provided with a credit card payment facility.

How to anticipate:

- We have to get used to predict how much budget we should spend for unexpected needs. According to Mr. Godo Tjahjono, SE, M Si, RFC business and financial practitioners, we must have an emergency fund of at least 3-6 times our spending ato family (for those who have a family). And more storage in the form of savings or deposits.

3. Helping Top Payment and Claims Payment Household

Weaknesses:

- If we forget to pay credit card bills we will pay interest that is not comparable when we mebayar these bills in cash through an ATM or cash to banks that have been d point.

How to anticipate:

- We  reminder on the agenda, hp tool  other reminders a day before the bill due date. That we have to pay these bills in full without remainder. Because of the delay can be  2-3% of the total interest bill.

- Never use the facility to take cash from your credit card, because it will be subject to the direct connection of 10% after the transaction.

Having one easy payment tools such as Credit Card is not a bad thing or a loss, but how do we  is the key to be able to avoid faults us in managing our personal financial budget.
Well that was the view of the Credit Card that may be my friends take the positive and negative aspects. Hope can be useful for us all.

Thinking about which credit card to transfer your present high interest credit card balance over to and to try and get ahead of the interest that keeps piling up even though you have stopped using your card? Of course deciding about whether it’s a good deal or not depending on how much the fee is for the one time transfer as opposed to what you’ll pay and how big your present and future interest payments would be. It could well be worth your while to transfer not only one single account, but to consolidate all your credit card balances would really make you see a large difference. The fee is usually a percentage of the balance to be transferred, and many times you’ll find it is a capped amount which makes it even more of a good decision.

You also need to be disciplined though, as some of these cards incorporate high rates of interest that kick in if you start to make additional purchases or if you don’t have the transferred balance paid off by the agreed upon end date. That fee could knock your socks off. The fee for making the original transfer and the not paid off in time fees are there to deter people from “surfing” through the various deals, and floating their balance around interest free for long periods of time.

Used well, credit cards may mean some benefits such as being able to have emergency money, or not having to carry large sums of cash with us when we pay a lot of money. However, due to their purchasing power, often credit cards are misused, making us spend more than they should, and making us pay accumulate high debt and high interest rates.

And this does not happen see below some tips that will help us better control of our credit cards and tips related to your safety:

Control costs
The first tip is to control the use of credit cards, knowing that the cards should not be used for everyday purchases, but to be used only in emergencies or to get us out of any trouble.

One way to control the use of credit cards is save and not take them with us when we go shopping, avoid impulse purchases. Another way to control credit card expenditure, is to acquire the habit of all receipts of purchases we make, so that thereby, at any time know that we are using our cards.

Control Debt
The following advice is to control debts generated by credit cards, knowing that because of its ease of use and high interest rates they charge, is very easy to get to accumulate high debt.

One way to control debt is to pay the cards in the month in which the use (and not have to pay interest) or, in any case, always pay more than the minimum required, a payment above the minimum amount decreases term debt and reduce it.

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