Even if you don't own a credit card, you're probably familiar with the names of the major cards. Credit cards are used by just about everyone. But how do they work? And more importantly, how can you make them work for you?

When you use a credit card, you're paying for a good or service on credit. This means that you are able to receive the product or service without paying any money immediately, but you agree to pay back the credit card company at a later time.

Credit cards bills are sent monthly. Every month you'll receive a bill which requires you to pay for all the purchases made on your credit card for the previous month. You will have to pay for all your purchases plus interest, which is a percentage of the total amount owed, if you did not pay your bill in full the previous month.

It's important that you always pay your credit card bill on time. If you miss a payment, the credit card company will charge you late fees. These fees can compound over time and be a very expensive way to purchase things.