<human>:  How do credit cards work?
<bot>: Credit cards allow you to borrow money to cover the cost of purchases. When you use a credit card, you are borrowing money from the card issuer, usually a bank or financial institution, and agreeing to pay back the loan in full (plus interest and potential other fees) when your statement arrives. You can make purchases with your card up to the amount of available credit you have been given, or with the amount of money you have put into the card in some cases. You can then pay off your balance in full or you can make minimum payments each month. Depending on the card, you may also be charged an annual fee and/or interest on any remaining balance.