Credit analysts work in credit card companies, commercial banks, and other financial firms. They are in charge of evaluating the worthiness of credit applicants in availing loans or borrowings. They also monitor the current financial performances of active credit clients. Credit analysts may directly work with business customers and consumers in collecting data and conducting credit evaluations. They may also work in partnership with credit officers or retail sales agents who deal with customer communication.
Credit analysts use various analytical methods in evaluating the associated risks in extending credit or lending money to applicants. They commonly assess the job histories, financial statements, payment histories, and credit reports of the individual applicants. In case of a business applicant, credit analysts conduct a much thorough evaluation like studying its industry and operations including the local market wherein the business operates. Credit analysts will determine the current competitive position of the business. Based on their analytical work, credit analysts would generally create recommendations and reports. In some arrangement, credit analysts are the ones responsible for the final decision whether to deny or approve the applicants.
A person with an earned degree of bachelor or associate in finance, accounting, or any related business course with mathematical major, can begin their credit analyst position at junior analytical ranks. Some positions in the said rank may deal mainly with consumer credit evaluation. For business credit evaluation, advanced knowledge in accounting and finance principles is often a necessity. This is on top of the requirement on bachelor’s degree.
A junior credit analyst who had been through several years of experience and good performance record, usually progresses into the next level in senior positions. Such position deals with more complex tasks. In some companies, senior credit analysts handle and manage a team for a certain industry, region, or market. If these analysts are top-performing they can ascend into financial management positions and manage analytical departments, monitor departmental performance, and produce final credit decisions.
Most companies today prefer to hire credit analysts with bachelor’s degree in economics, accounting, finance and business with mathematical major. If the candidate for the job may only have associate degrees and yet with qualifying work experience in a bank or financial institution, and relevant subjects on the background, he may be open for some entry-level jobs for credit analytical department. However, applying credit analysts who are aiming for a higher level of financial positions such as supervisory or managerial, a bachelor’s degree is necessary. But some financial companies prefer hiring managers with master’s degree in finance, business administration or related courses.
Credit analysts are not required to acquire professional licenses in order to work in their field. But professional certifications such as CRC or Credit Risk Certification is an edge to leg up a position in the job market. The said certification is also an advancement in a more senior financial management and credit analysis position. Credit Risk Certification or CRC is an examination covering the seven areas of knowledge in the field of credit risk analysis.
A job outlook had been predicted in the job market analysis today. It is expected that by 2022 the employment of credit analysts in the United States will increase to about 10%. If you opt to acquire a job in the field of credit analysis then start refining your financial vocabulary and invest in it. You might be one of the credit analysts in the future that top financial firms are looking for.