There are three types of credit cards.
Credit cards allow consumers to buy now and pay later.
Charge cards, however, must be paid in full every month. If a credit card is reported lost or stolen, it can be cancelled and you will not be held liable for fraudulent purchases made. And, like your check register, your credit card statement provides you with a record of your purchases. But to qualify for and carry a credit card, you must establish and maintain a good credit record or history. It is also important to read and understand your credit agreement as once you accept a credit card, you become legally responsible to repay what you buy with it.