Cursor AI Guide: Editor, Agents, Privacy and Cost

Cursor is an AI-powered code editor based on Visual Studio Code, with features for asking questions about a codebase, generating or editing code, and delegating multi-step work to agents. Its practical value depends on how much you want AI inside your editor; plans, model access, and privacy controls determine the cost and what code may be processed.

What Cursor is and how it works

Cursor is a desktop editor for Windows, macOS, and Linux. Its interface and many workflows will feel familiar to VS Code users, and Cursor can import VS Code settings and extensions. It is a separate product, however, so compatibility and behavior should not be assumed identical for every extension or setting.

AI features use the current file, selected text, instructions, and—when relevant—information retrieved from other files in the project. Cursor indexes a codebase to help find relevant context, rather than sending every file for every question. The exact context available depends on the feature, settings, and the request. You can ask a question in chat, select code for an edit, or let an agent work across files and tools.

Editor and AI features

• Tab completions: Suggestions can continue a line or propose a larger edit as you type. Accept or ignore them; treat suggestions as drafts, not verified code.
• Chat and codebase questions: Ask for an explanation, find where a function is used, or request a change. Referencing files or selected code can make a prompt more precise.
• Inline edits: Select a section and describe the desired change, such as “handle an empty response and add a test.” Review the proposed diff before keeping it.
• Codebase context: Cursor can search or retrieve relevant project material to answer questions and inform edits. Clear file names, focused prompts, and useful project documentation improve results.
• Terminal and other tools: Depending on the agent workflow and permissions, an agent can run commands or use tools to check its work. Inspect commands and results, especially where they change files, install packages, or affect external services.

Feature names, supported models, limits, and interface details change over time. Check Cursor’s current documentation and in-product settings when a particular capability matters to your workflow.

Agent tasks: what to delegate

An agent is useful when a task needs investigation and coordinated changes rather than a single completion. For example, you might ask it to trace how a form is submitted, add validation, update the relevant tests, and report what it changed. It may inspect several files, propose edits, and run checks, but it can misunderstand requirements or choose an incomplete fix.

Give the agent a bounded goal and a way to verify success. A strong task might say: “In the account settings page, reject a blank display name, add a unit test for that case, and run the relevant test command. Do not change the API.” This gives it scope and a checkable outcome. For a risky or broad task, ask it to explain its plan first and work in small stages.

• Review every diff; look for unrelated changes, missing edge cases, and altered configuration.
• Run tests, linters, or builds yourself when the result matters. A successful command is not proof that the feature is correct.
• Use version control or a clean branch so you can inspect, keep, or revert changes.
• Do not assume the agent has complete knowledge of a large repository or of requirements that were never stated.

Privacy and code handling

Cursor’s privacy behavior depends on product settings and the feature used. Requests that use cloud models generally require sending relevant prompt context to a model service for processing. Cursor describes its Privacy Mode as limiting how user code is stored or used by Cursor and model providers; read the current policy and settings for the precise commitments, exceptions, and provider handling. “Privacy Mode” should not be treated as a promise that no data leaves your computer.

Local codebase indexing and cloud model processing are separate questions: an index on your device does not mean every AI operation is local. Before using Cursor with confidential or regulated material, check your organization’s rules, the current Cursor privacy documentation, model-provider terms, and available administrative controls. Exclude sensitive files from indexing where supported, and avoid putting credentials, private keys, customer data, or secrets in prompts. Keep secrets in appropriate secret-management systems and rotate any credential accidentally exposed.

Plans and cost

Cursor has offered free and paid plans, with paid tiers providing different usage allowances and capabilities. Exact prices, included model usage, and limits can change, so consult Cursor’s pricing page and your account’s usage display before subscribing. Do not infer that a plan includes unlimited use of every model: premium models or high-volume use may be subject to quotas, usage-based charges, or other limits under the current plan.

For budgeting, compare the work you expect to do with the plan’s current allowances. A person who mainly wants occasional completions may have different needs from someone who runs agents throughout the day. Check how overages are handled, which models are included, whether usage is shared across features, and how to disable or constrain additional usage. If you are evaluating the editor, begin with the available free access and measure your actual usage before paying.

Choosing Cursor and avoiding common problems

Cursor may suit developers who want an AI assistant tightly integrated with code navigation and editing. It is less compelling if you prefer a plain editor, cannot send project context to cloud services, or already have an assistant that meets your needs. Teams should weigh shared settings and administration alongside individual productivity, privacy obligations, and the time needed to review generated changes.

Common disappointments usually have practical causes: a vague prompt, missing project context, outdated documentation in the repository, or a task too large to verify. Include the relevant files, constraints, and expected behavior; ask for a small change; then inspect and test it. If a suggestion is wrong, provide the error and the intended behavior rather than repeatedly asking the same broad question. For unexpected model access or charges, check account usage, plan limits, and usage controls in the current settings.

Frequently Asked Questions

Is Cursor just a VS Code extension?
No. Cursor is a separate editor based on VS Code. It supports many familiar VS Code workflows and can import settings, but it is not simply an extension installed into the VS Code application.

Can Cursor edit multiple files?
Yes. Chat-based edits and agent tasks can propose changes across files when the task and available context call for it. Review the complete diff and run relevant checks before relying on those changes.

Does Cursor send my code to the cloud?
Cloud-model features process relevant context through model services. The exact data handling depends on settings, provider, and current policy; check the privacy documentation and your organization’s requirements before sharing sensitive code.

Is Cursor free?
Cursor has offered a free tier as well as paid plans, but allowances and prices can change. Check the current pricing page and account usage information for the terms that apply now.

Can Cursor’s agent run commands?
Agent workflows may use terminal commands or other tools, depending on the feature and permissions. Read proposed commands and check their effects, particularly before running commands that modify files or access external services.

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