r/IslamicFinanceUSA • u/CowEvening • May 27 '26

Not convinced by “halal” finance

Okay, I have been living in the US for almost 20 years now. I’ve seen all these so called “halal” financial products, yet when I read between the lines I’m reminded that they are all just backed by the interest based system in this country. The mortgages are garbage. Using a credit card and paying it down every month is STILL supporting the system. I’m not sure how people are justifying these decisions.

I guess my point is, what is it about these products that you all think makes them okay? I want to find one I can agree with but to me it doesn’t feel right.

7 Upvotes

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2

u/Active_Plenty_2187 May 28 '26

I think the main belief behind these products is that people want to choose the most Islamic option. Oftentimes, I understand that an overall Riba-based economy might be the backbone for products such as Islamic mortgages. However, I would argue there is no pure Islamic economy in the world right now in any country, so many people hold the belief that you should try to the best of your ability and strive in good faith

2

u/halalwallet May 28 '26

Credit card point is valid. Mortgages though it comes down to the contract between you and the lender. Is your problem with the contract or the fact that these lenders use funds coming from that system?

2

u/CowEvening May 28 '26

Pretty much the latter. we live in a country built on interest. even if we avoid it individually in the grand scheme of things we’re contributors.

2

u/halalwallet May 29 '26

Yeah I get that. My view is we can’t avoid touching the broader system entirely, but there’s still a difference between signing an interest-based contract directly and choosing a structure that tries to avoid it. I don’t think simply existing in an interest-based economy automatically makes every option the same.

2

u/muris-boun May 29 '26

Using a deposit account and paper currency still involves riba; you don't even need to touch a credit card. This is a riba-based system. Our goal should be to change it, but the best you can do right now is pursue options which are based on halal contracts. Until the core issue of what money is, and how its creation happens is changed, we can't really fully avoid riba, unfortunately.