Credit analysts should have a suitable knowledge on finance since the job requires thorough investigation on the creditworthiness of the loan applicants. They generally work for credit card ratings agencies, credit card issuers, investment or commercial banks. They do comprehensive analysis on the gathered financial data from the clients like debts, payment history, savings, and salary. Therein after, they recommend actions such as decreasing the credit line or approving the loan amount applied by the client. The responsibilities of a credit analyst can be tough. That is why one should possess the qualified skills in order for the job to be delivered well.
Accounting skills are very important knowledge that a credit analyst must have. Such skills are acquired from any of the bachelor’s degree in accounting, economics, finance, and other related field. Credit analysts must be knowledgeable in basic accounting techniques like financial statement analysis, statistics, and ratio analysis. Though some hiring companies would provide training for credit analysts when hired, they may also require the analysts to have proven skills in quantitative or business analysis, and advanced math. Though if you find credit analysts who do not have the bachelor’s degree in a financial course, they probably have the extensive job experience in business and finance.
Credit analysts must have the vast knowledge of the finance industry. Since their role is to do credit analysis, in-depth comprehension in financial matter is vital. For instance, a credit analyst who is investigation and analyzing transactions on real estate, should acquire comprehensive knowledge on the industry of real estate. On the other hand, it is important for credit analysts to always always keep up with the new developments on the financial industry that they are analyzing.
Another essential skills of credit analysts are being detail-oriented. With this skill, credit analysts can easily spot any incorrect or missing information on financial statements and credit reports. Credit analysts should also be well-organized and thorough as to ensure that all necessary documents and data are accurately accounted for. Since credit analysts often work on various reports simultaneously, they should know the art of multitasking and prioritization. Strong oral and written communication skills are relatively important for credit analysts because they are into doing frequent presentations and reports. Effective communication is also very important in disseminating decisions to various people.
Today, there are many available financial software products in the market that credit analysts can use. However, credit analysts must have the experience in using the said products as most financial firms today provide their trainings and methods by using computer software products. The said products include courses in subjects such as corporate accounting and valuation, and computer modeling. It also includes how to build computer models of predicted financial results and create statistical exhibits.
A credit analyst needs to have the skills of diligence. It is important in a credit analysis job to have the ability to have great attention to details. Any bit of data or information that has missed or incorrect analysis could cause latent problems for the involved client. Quantitative analysis skills are important knowledge for credit analysts. Using these skills, a credit analyst is able to create a set of numbers and look at it, then able to know its meaning for every certain client.
Knowledge of industries is an imperative skill of a credit analyst since the job will require working in different companies. A comprehensive understanding on the ins and outs of a certain industry can be useful when time comes that you are applying for the job.