<human>: Can you explain how a credit card works?
<bot>: A credit card is a type of loan that allows the user to borrow money from the lender, usually with an interest rate. The user agrees to pay back the amount borrowed plus interest over time, usually within a set period of time (usually between 6 and 12 months). In order to obtain a credit card, the user must provide some form of identification and proof of income. Once approved for the card, the user can use it to make purchases, receive cash advances, or transfer balances to other cards. Credit cards are often used as a way to build credit history, which can help improve future borrowing options such as home loans and car loans.