How to Use Credit Without Letting It Use You
Credit can be a helpful financial tool—but only if you understand how it works. Used the wrong way, it can lead to stress, debt, and a low credit score. Used the right way, it can help you build a strong financial future.
Here’s what you need to know to make smart decisions when it comes to credit.
What Is a Credit Score, and Why Does It Matter?
Your credit score is a three-digit number that shows how likely you are to repay money you borrow. It’s based on your credit history—accounting for credit usage, depth and behavior, and well as payment history.
Most scores range from 300 to 850. The higher your score, the easier it may be to get approved for things like loans, credit cards, or even an apartment. A good credit score can also mean lower interest rates and more flexible options.
Know Your Credit Limit—And Stay Below It
Just because you can spend up to your credit limit doesn’t mean you should. You should always try to stay below your limit so that your debt is easily manageable.
This is called your credit utilization, and it’s a big factor in your credit score.
Make Payments on Time—Every Time
Your payment history makes up the largest part of your credit score. Even one missed payment can hurt you. Set reminders or use automatic payments if you’re worried about forgetting.
Paying on time shows you’re responsible. More importantly, it helps you avoid late fees and added interest.
Avoid “Buy Now, Worry Later” Thinking
It’s easy to swipe a card and deal with it later—but that mindset can lead to more debt than you’re ready for. Before using credit, ask yourself
- Do I really need this?
- Can I afford to pay this off in full next month?
- Is there a better time to make this purchase?
Thinking ahead helps you stay in control.
Don’t Open Too Many Accounts at Once
Opening several credit cards or loans in a short time can hurt your score. Each application adds a “hard inquiry” to your credit report, and too many of those can be a red flag.
Stick with what you need, and grow your credit history over time.
Check Your Credit Report—and Your Credit Score
You can get a free credit report every year from all three major credit bureaus. Look for mistakes, unpaid accounts, or anything suspicious.
But if you want to keep an even closer eye on your credit, it helps to have a tool that gives you real-time updates and personalized insight.
Keep Your Credit in Check with Credit Score
If you're a CSE Member, you already have access to Credit Score—a free tool built into CSE Online and CSE MOBiLE. Credit Score allows you to:
- Check your credit score with no impact
- Track what’s affecting your score
- Get personalized tips to improve it
Whether you're working to build credit or simply want to stay informed, Credit Score can help you take control.