Lichvod haRov Fleischman shlit’o,
My son had an idea which would benefit both of us:
I have a large outstanding credit card bill with a high interest rate, and don’t want to simply do a balance transfer to another credit card company, since I’ll lose many accrued travel points worth thousands of dollars.
My son needs to build his credit rating by taking a loan and showing he can pay it down every month.
So his idea is take out the loan, pay off my entire balance, and then we link my bank account to his bank or CC company and I make the monthly payments directly to them. (At a much lower interest rate).
Is this assur because I’m paying it on a Jew’s behalf, or muttar because I pay the goyim directly?
Also, does the fact that really this is originally my loan affect the halacha? If so, would it make a difference if it’s to the same bank/CC company as I currently owe?
thanks very much and tizku l’mitzvos!
Answer from Horav Fleishman shli”a
I don’t understand exactly how the scheme works so let me just give guidance-if the bank lends your son money and your son lends you the money and therefore you are really borrowing and paying back to your son you will need a heter issko between you and your son. If that isn’t the case maybe explain exactly who is lending to whom-who is paying to whom etc
Here is a link to the sites heter iska. http://dinonline.org/2010/02/24/heter-iska/