The only word that can be made using all of the letters c, a, r, e, s, o, e, d and t is "decorates." Other words that can be made from some of those letters include escorted, corset, care, ceased and reacted.
New words created from the letters of another word or phrase are called anagrams. There are several websites that list all the anagrams of a word or set of letters, including Wordsmith.org, Wordplays.com and AnagramGenius.com. According to Wordsmith.org, other possible words are sacred, cedars, cater, orca and traces.
When finding words in a series of letters, people can look for common prefixes or suffixes, such as -ed, pre- or -tion. Another good strategy is to place together letters that commonly appear together, such as qu, wh or sh. Letters that rarely appear together can be separated. If a series of letters has more consonants, focusing on them can help determine likely consonant pairs, and if there are more vowels, it may be helpful to focus on the vowels. This strategy can help to discover common letter pairs or strings such as str, ght and iou, which might otherwise remain hidden. Once some common letter pairs or strings are determined, the few remaining letters can more easily be placed to create words.