Credit Analyst

Credit analysts study the current credit data and financial statements of individuals or firms to determine the degree of risk involved in extending credit or lending money. They use a number of ratios when reviewing a potential borrower and then prepare reports with this credit information, all of which is used to make a decision on whether the financial institution will lend credit to the borrower.

Credit Analyst

Most credit analyst positions require only a high school diploma to start, since the majority of training is accomplished on the job in both formal and informal training sessions. A bachelor’s degree in finance or economics is often preferred by commercial loan institutions, however, and it could improve your chance of landing a job. Since the work entails studying the credit worthiness of a client, credit analysts need to understand business accounting, financial statements and more.

Credit Analyst Job Description

Credit analysts verify the information on credit applications to determine a client’s creditworthiness. Their task is to figure out whether a borrower will have sufficient cash flow to pay back the line of credit by comparing ratios to industry standards, other borrowers and historical trends. For example, a credit analyst at a bank may analyze a company’s financial statements before providing them a loan for a new warehouse.

On a daily basis, credit analysts:

  • Access a client’s credit history using underwriting software.
  • Request additional financial information from the client or copies of the company’s financial statements.
  • Verify the information of a loan application to determine whether the prospective loan meets the lending institution’s requirements.
  • Determine the risk levels of taking on a client and whether this client could pay back the loan.

Credit Analyst Salary

According to the U.S. Bureau of Labor and Statistics (BLS), the median salary for a credit analyst is $57,470 with the top 10% earning up to $112,710. BLS projects employment to grow much faster than average between the years of 2008-2018.



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