A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system.

Credit cards have become an important sources of identification now. A credit card can provide convenience and allow you to make purchases with nearly a month to pay for them before finance charges kick in. 

Shopping around for a credit card can save you money on interest and fees. Before applying for a particular credit card, see the information below. 

It can help you in choosing the right credit card for you:

• Think about how you will use your credit card. 
• Understand the features of credit cards.
• Compare credit card features and costs.
• Know your rights when using your credit card.
• File a complaint if you have a problem with your credit card.

How they work: A credit card user is issued the card after approval from a provider , in which they will be able to make purchases from merchants supporting that credit card up to a pre-negotiated credit limit. earlier when a purchase is made, the credit card user indicates his/her consent to pay, usually by signing a receipt with a record of the card details and indicating the amount to be paid but now electronic verification systems have allowed merchants  to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. Some services can be paid for over the telephone by credit card merely by quoting the number embossed onto the card (the credit card number), and they can be used in a similar manner to pay for purchases from online vendors.

Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, and the total amount owing. The cardholder must then pay a minimum proportion of the bill by a due date, and may choose to pay more or indeed pay the entire amount owing. The credit provider charges interest on the amount owing.  Interest rates can vary from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument.

Types of credit cards:

1. Regular cards: They do not require a security deposit and have just a few features. Most regular cards have higher credit limits than secured cards but lower credit limits than premium cards.

2. Secured cards: A secured credit card is a special type of credit card in which you must first put down a deposit between 100% and 150% of the total amount of credit you desire. The larger the security deposit, the higher the credit limit.  Secure credit cards are specially for people with poor or no credit history. Secured credit cards are available with both Visa and MasterCard logos on them.

3. Premium cards: They offer higher credit limits and usually have extra features like product warranties, travel insurance, or emergency services. There are 3 types of premium cards & they are  gold, platinum & titanium.

Different from debit cards: A credit card is different from a debit card in that the credit card issuer lends the consumer money rather than having the money removed from an account. 

Different from charge cards: A credit card is different from a charge card (though this name is often used to describe credit cards by the public) in that charge cards do not extend the user credit -- the charges must be paid each month in full.