How to Use Credit Wisely
Navigating the world of credit can be a complex journey for many people. With a myriad of credit card options, loan offerings, and varying interest rates, it is no surprise that individuals may feel overwhelmed. However, credit, when used wisely, can become a powerful tool for financial stability and prosperity. Here are some key guidelines to adopt.
Understand Your Credit Limits
It's crucial to be aware of the credit limits on credit cards and lines of credit. Avoid maxing out your credit limits. High credit usage can negatively impact a credit score and give potential lenders the impression that you are a high-risk borrower.
Pay Your Bills on Time
Timely payments are the backbone of a good credit history. Delayed payments are a red flag to lenders, indicating a lack of financial discipline. Therefore, always pay bills by the due date.
Pay More Than the Minimum Amount
We recommend paying your balance in full each month. Simple rule: If you don’t have the ability to pay for it, DON’T BUY IT!
Resist the Temptation of Unnecessary Credit
It is easy to acquire additional credit cards or loans, particularly when credit companies dangle attractive offers. Resist the temptation and only opt for credit that is necessary and manageable.
Regularly Review Your Credit Report
By law, you are entitled to a free credit report from each of the three major credit bureaus annually. Regular review of your credit reports will help you spot any errors that could impact your credit score.
To obtain a free credit report, visit Experian, Equifax, or Transunion, or a site such as Credit Karma, which compiles all three reports into one.
Maintain a Healthy Credit Mix
Lenders typically prefer borrowers who have shown they can handle various types of credit. Therefore, a mix of revolving credit (like credit cards) and installment loans (such as auto loans, student loans, or mortgages) can be beneficial to increasing a credit score.
How To Stop Using Credit When It's a Problem
To stop using credit, consider the following steps:
Create a Budget
- Track your income and expenses to understand your financial situation. This budgeting helps in living within your means and avoiding reliance on credit.
- Build an emergency fund - An emergency fund can help cover unexpected expenses, reducing the need to use credit for emergencies.
- Use debit instead of credit - Using a debit card helps promote spending only what's in the bank account, helping you avoid debt.
- Pay off existing debts - Focus on reducing and eventually clearing off existing credit debts.
- Cut the cards – Destroying the credit cards may help alleviate the temptation to use them.
Let's Team Up
Don't hesitate to seek help from a financial professional or credit counseling agency if you're struggling with credit management. They can provide you with strategies and tools to manage credit more effectively.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
This material was prepared by Fresh Finance for the Investment Service Center’s use.
Copyright FMG Suite.
The longest U.S. government shutdown on record, lasting just over six weeks, ended late last Wednesday. As the dust settles and federal spending resumes, investors are starting to tally the damage.
Our base case was for a soft 4Q25 followed by a stronger 1Q26. That still holds, but the swings could likely be more dramatic. 4Q25 GDP, initially expected to grow around 1%, is now tracking a mild contraction. Frozen federal outlays, hundreds of thousands of unpaid or furloughed workers and disruptions to the SNAP food assistance program likely weighed on 4Q activity.
Crucially, much of this government-driven demand is delayed, not destroyed. With the government reopening, spending resumes, staff receive back pay and suspended programs restart, albeit gradually. This shift into early 2026, paired with a now lower 4Q base, suggests the 1Q26 growth print could come in stronger than previously expected.
Even so, some output will not return. The CBO estimates a cumulative $15 billion shortfall in real GDP through 1Q26 relative to a no-shutdown path, reflecting lost output from hours not worked and foregone private demand, such as canceled travel plans, that will not be recouped.
Markets largely looked through the shutdown, much as they have in past episodes. But just as the deal removed one overhang, new risks emerged, with uncertainty around the Fed’s December cut contributing to the late-week sell-off. Valuations still remain stretched, and more risks sit on the horizon. The current funding deal runs only through January 30, and looming IEEPA tariff rulings could introduce fresh volatility. Against this backdrop, investors may want to consider further diversifying their portfolios and adding downside protection should economic turbulence begin to catch up with markets.
Chart of the Week: Source: CBO, J.P. Morgan Research, J.P. Morgan Asset Management.
Thought of the Week: Source: CBO, J.P. Morgan Research, J.P. Morgan Asset Management.
Index: Institute for Supply Management Manufacturing Index; PCE: Personal consumption expenditures; Philly Fed Survey: Philadelphia Fed Business Outlook Survey; PMI: Purchasing Managers' Manufacturing Index; PPI: Producer Price Index; SAAR: Seasonally
Adjusted Annual Rate
MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the performance of the developed stock markets of Europe, Australasia, and the Far East.
Bond Returns: All returns represent total return. Index: Bloomberg US Aggregate; provided by: Bloomberg Capital. Index: Bloomberg Investment Grade Credit; provided by: Bloomberg Capital. Index: Bloomberg Municipal Bond 10 Yr; provided by: Blomberg Capital. Index: Bloomberg Capital High Yield Index; provided by: Bloomberg Capital.
Key Interest Rates: 2 Year Treasury, FactSet; 10 Year Treasury, FactSet; 30 Year Treasury, FactSet; 10 Year German Bund, FactSet. 3 Month LIBOR, British Bankers’ Association; 3 Month EURIBOR, European Banking Federation; 6 Month CD, Federal Reserve; 30 Year Mortgage, Mortgage Bankers Association (MBA); Prime Rate: Federal Reserve.
Commodities: Gold, FactSet; Crude Oil (WTI), FactSet; Gasoline, FactSet; Natural Gas, FactSet; Silver, FactSet; Copper, FactSet; Corn, FactSet. Bloomberg Commodity Index (BBG Idx), Bloomberg Finance L.P.
information from FactSet's Pricing database as provided by MSCI. Russell 1000 Value Index,
Style Returns: Style box returns based on Russell Indexes with the exception of the Large-Cap Blend box, which reflects the S&P 500 Index. All values are cumulative total return for stated period including the reinvestment of dividends. The Index used from L to R,
top to bottomare: Russell 1000 Value Index (Measures the performance of those Russell 1000 companies with lower price-to book ratios and lower forecasted growth values), S&P 500 Index (Index represents the 500 Large Cap portion of the stockmarket, and
is comprised of 500 stocks as selected by the S&P Index Committee), Russell 1000 Growth Index (Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values), Russell Mid Cap Value Index (Measures
the performance of those Russell Mid Cap companies with lower price-to-book ratios and lower forecasted growth values), Russell Mid Cap Index (The Russell Midcap Index includes the smallest 800 securities in the Russell 1000), Russell Mid Cap Growth Index (Measures the performance of those Russell Mid Cap companies with higher price-to-book ratios and higher forecasted growth values), Russell 2000 Value Index (Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values), Russell 2000 Index (The Russell 2000 includes the smallest 2000 securities in the Russell 3000), Russell 2000 Growth Index (Measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted growth values).
Past performance does not guarantee future results.
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