[header] How to use credit wisely [title] Realize that one of the reasons that credit cards are abused so frequently is that many people that use them don't truly understand what a credit card is and how they work. [step] Credit cards are unsecured loans. Credit cards allow you to use the bank's money. 
Many people that use credit cards think of the balance on their card as their money, when in essence, this is the amount of money that the bank is willing to lend you. Everything that you borrow must be paid back with interest.