How to Strengthen Your Credit and Finances — Even Without a Recession
While we’re not officially in a recession right now, many Americans are feeling economic anxiety. A recent NerdWallet survey shows that 85% of U.S. adults are concerned about tariffs, and nearly half believe tariffs could trigger a recession.
Even market analysts are growing uneasy. In April 2025, J.P. Morgan Research raised its odds of a 2025 recession to 60%, up from 40% at the start of 2024.
“There’s a lot of uncertainty right now,” says Bruce McClary, SVP at the National Foundation for Credit Counseling (NFCC). “But there’s also a lot you can control if you have the right tools and information.”
Whether or not a recession happens, taking proactive steps to improve your financial stability — especially your credit — can put you in a stronger position for whatever lies ahead.
1. Understand Where Your Money Goes
Start by tracking your income and expenses. That means knowing not just how much you’re spending, but what you’re spending it on.
Technology can help. AI tools, including ChatGPT, can break down your spending categories if you upload bank or credit card statements. Some platforms can even create visual summaries to help you spot trends.
«This can help you build a more effective plan,” says Estela Nagahashi, interim CEO of University Credit Union.
2. Revisit Your Emergency Fund
Despite the name, emergency funds aren’t just for medical issues — they’re for any unexpected or irregular expenses.
“Emergencies happen all the time,” says Brad Clark, a financial advisor in Indianapolis.
Nearly half of U.S. adults say they feel like they’re financially underwater, according to the NFCC’s 2025 Financial Literacy Survey. Even small unplanned costs can tip the balance.
Adjusting your budget now can free up money to stash away, giving you a buffer to avoid high-interest credit card debt when life inevitably throws a curveball.
3. Keep Your Credit in Top Shape
Good credit scores provide access to lower-cost loans, better credit card offers, and even help with housing and job applications. That flexibility can be crucial during tough times.
A key to maintaining strong credit? Never miss a payment. Late or missed payments can cause serious damage to your score. Use autopay or set up due-date alerts to stay on track.
Remember: during economic downturns, lenders tend to tighten approvals, especially for things like balance transfer cards. That means excellent credit becomes even more important.
4. Tackle Your Debt Strategically
If you have multiple debts, use a plan like the avalanche (highest interest first) or snowball (smallest balance first) method to pay them down.
“You don’t want the bulk of your debt sitting on the card with the highest rate,” says McClary.
Consider consolidating debt using personal loans or balance transfer cards while your credit is still in good standing. These options can significantly lower interest costs, but may become harder to qualify for if the economy worsens.
5. Use Credit Card Features to Your Advantage
Credit cards can be more than just a payment tool — they offer features that can save you money:
- Rewards: Cash back or points for everyday spending
- 0% Intro APR: Time to pay down purchases or transfers interest-free
- Built-in protections: Like cell phone insurance or travel coverage
- Installment options: Some cards let you split large purchases into fixed monthly payments
But it’s essential to understand the fine print. Nagahashi recalls a credit union member who used a promotional 0% interest offer for an A/C unit — but didn’t realize that if the balance wasn’t paid off before the promo expired, interest would retroactively apply.
“Always read the terms,” she advises.
6. Ask for Help Early
If you’re struggling to keep up with your credit card payments, don’t wait to reach out for assistance. Contact your card issuer and explain your situation.
The earlier you ask — before you’ve missed payments — the more likely they are to work with you. Missed payments over 90 days can limit your options.
“Your credit card company doesn’t know your story unless you tell them,” McClary says. “By reaching out, you can often avoid going into collections or damaging your credit further.”
Bottom Line
While we may not officially be in a recession, economic uncertainty is very real. But by focusing on your spending, building your emergency fund, and keeping your credit strong, you can increase your financial resilience — no matter what the economy does.