What Is a Credit Class?

Money is viewed as something we spend and sometimes save. The word credit gets thrown around when dealing with personal finances. Good credit, bad credit and even not having established credit can change a consumer’s life if she is not aware of the advantages and disadvantages of credit. Before you can utilize credit to your benefit, you should seek to know more about credit. One way to learn is by taking a credit class.

The Facts

They focus on what credit is, how to obtain credit, the advantages and disadvantages of using credit and the meaning of a FICO score. Many people’s lives have been changed by not knowing what credit is prior to utilizing it and doing damage to their financial profile. A credit class can be offered by a bank, an independent financial counselor or adviser or a community colleges or adult education facility.


A credit class can last for a month or two and focus on different aspects of credit. This depends on your instructor and the information he wants you to know. Consumers should understand a basic definition of credit, which is a contract agreement in which the consumer receives an item or items of value now and agrees to repay over a period of time until the obligation is met.


Not understanding credit can affect consumers in the long term if they are not knowledgeable in how to repair the damage that was done due to their lack of understanding credit and how it works. The positive effect of credit rewards consumers in a sense with larger credit lines which provides the mechanism to purchase a house or even an automobile.


Attending a credit class--regardless of your age or economic background--can only enhance your learning to manage your credit effectively and wisely. This can reduce the amount of mistakes made with credit. Furthermore, if the consumer is in a situation needing to re-establish credit, he will have an appreciation and understanding for what credit can and cannot do for him the second time around.


When adults do not understand credit, they pass on those same mismanagement of credit examples to their children and others that come across their path.