human
Can you explain how a credit card works?
assistant
A credit card is essentially a loan that is secured against your future income. When you use the card, you are borrowing money from the lender and agreeing to pay it back in full with interest. The amount of money you can borrow will depend on your credit score and the terms of the agreement. You may also be charged an annual fee for using the card. As long as you make all of your payments on time, the lender will not pursue legal action against you.