How to Use Credit Cards the Right Way ▪︎ Possible Finance

How to Use Credit Cards the Right Way

Credit cards get a bad rap—and for good reason. They can lead to high fees, rising debt and overspending if not used carefully. But according to Chief Credit Officer Ellen Falbo, saying you should never use credit cards misses the full picture.

In this episode of Credit Corner, Ellen explains the pros and cons of credit cards. Yes, they come with risks—but they also offer serious benefits, like fraud protection, travel perks and greater flexibility when booking hotels or rental cars.

The key is to use them intentionally. That means only spending what you can pay off, watching for fees and building a positive credit history along the way. Avoiding credit cards entirely might protect you from some mistakes—but it could also limit your financial tools.

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Transcription

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The most common reason credit scores drop
Andrew, a Possible member since 2021, is looking for a straight answer about what most often causes credit scores to fall. Ellen Falbo, Chief Credit Officer at Possible, names the single event that hurts scores the most and explains the life situation that usually triggers it.
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How to plan for your future and get out of debt in midlife
Tiandra, a Possible member since 2024, asks Ellen Falbo, Chief Credit Officer at Possible, where a middle-aged woman should even start when it comes to getting out of debt. Ellen gets it. She offers a starting point that goes against what most of us were taught: put yourself first, before the debt.
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Why Your Credit Score Varies by Bureau
Felycia wants to know why her credit reports never seem to match up. Ellen Falbo, Chief Credit Officer at Possible, explains how reporting delays, different scoring models and incomplete credit bureau data create those gaps. She also shares how Possible uses real-time cash flow data for a more current picture.
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How Many Trade Lines Do You Actually Need?
Sharon wants to know how many credit accounts a person should carry. Ellen Falbo, Chief Credit Officer at Possible, shares the number she personally keeps on her own reports and explains why intentional credit use matters more than volume.
1:12

Why Credit Drops Fast But Builds Slowly
Lisa asks why one missed payment can destroy her credit score while months of on-time payments barely move it. Ellen Falbo, Chief Credit Officer at Possible, explains the predictive logic behind the imbalance and what it takes to prove a missed bill was a one-time event.
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Why Paying Off a Loan Can Drop Your Credit Score
Shannen paid off her car loan and watched her credit score dip. Ellen Falbo, Chief Credit Officer at Possible, explains why closing a trade line can trigger a temporary drop and how long it typically takes to rebound.
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Financial Literacy Class: Credit scores, budgets, and how to use both
Your credit score affects more than your ability to borrow money. It can shape your housing options, career prospects, and insurance rates. This session, led by CCO Ellen Falbo at our Full-Court Finance event, covers the credit ecosystem and three practical budgeting methods, with real numbers and concrete examples to help you take control of your finances.
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What Credit Score Do You Need to Buy a Car?
Damion is trying to finance a vehicle and wants to know what number to aim for. Ellen Falbo, Chief Credit Officer at Possible, breaks down the specific thresholds that matter, from smooth approval to tighter terms to alternative options.
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