How to Become a Credit Analyst
Learn everything you need to know about becoming a Credit Analyst in this article. See if you have the skills, aptitude and personality traits to succeed in this position, as well as educational and professional experience necessary to find a job.
What Does a Credit Analyst Do?
A Credit Analyst is responsible for reviewing an individual’s or a company’s financial records and credit data to determine if they qualify for a loan or credit. These professionals analyze financial data and calculate the level of risk that is associated with providing each client with a loan or credit. They then prepare reports based on the data analyzed, along with the terms of the loan they recommend for each individual client. These professionals work in commercial or investment banks, investment companies, and other institutions that offer loans or grant credits, such as credit card-issuers and credit rating agencies.
Credit Analysts must have excellent accounting skills, such as analyzing financial statements, statistics and ratio analysis. Furthermore, these individuals must have in-depth knowledge in the specific industry they work in, such as real estate. Typical responsibilities of Credit Analysts include:
- Accounting tasks, such as calculating a client’s credit score
- Clerical tasks, such as managing clients’ records
- Writing tasks, such as compiling reports
Credit Analyst Skills
A Credit Analyst must have technical skills to analyze financial information and evaluate the risk associated with offering a loan or credit, but that is not all that is needed to excel in this field. This position requires a person with strong ethics and integrity, as they will be privy to sensitive information, which requires confidentiality and trust. They must be able to utilize good judgment and decision-making skills to make valid recommendations to the organization they work for based on the information they possess.
Other key Credit Analyst skills include:
- Typing proficiency
- Problem solving
- Attention to detail
- Quantitative analysis
- Working with financial software
How Do You Become a Credit Analyst
Education and Training
While certain banks and financial institutions offer on-the-job training without a required professional degree, most job postings across the country preferred candidates to possess a bachelor’s degree in finance, economics, accounting or a related field. Some companies accept work experience in accounting or finance in lieu of a degree, but most preferred both educational and professional experience, such as internships in the financial field.
Additionally, advancing in this field typically requires Credit Analysts to possess certain certifications, such as:
- Credit Risk Certification (CRC) from the Risk Management Association
- Professional Certificate in Credit from the New York Institute of Finance
- Credit Business Associate from the National Association of Credit Management (NACM).
- Credit Business Fellow (CBF) from NACM
- Certified Credit Executive (CCE) from NACM
Finding a job
There is a negative job outlook for Credit Authorizers, Checkers, and Clerks; a negative 6 percent decrease in job openings, just 380 new jobs, is predicted by the Bureau of Labor and Statistics through 2024. This means that candidates will face high competition when applying for Credit Analyst positions.
To set yourself apart from others when applying for jobs, concentrate on creating a winning resume by using examples from JobHero’s sample Credit Analyst resumes.
Search for job openings across the country, as well as contact any people you have met during your internships or previous work experience.
Write a compelling Credit Analyst cover letter that will convince potential employers that you have the technical skills, as well as the ethics, analytical and communication skills needed to succeed in this field.
How Much Do Credit Analysts Get Paid?
The median yearly salary for Credit Authorizers, Checkers, and Clerks, such as Credit Analysts is $35,300. The lowest-paid professionals make $24,300, while the highest-paid earn $57,400.
Top 10 States for a Credit Analyst’s Salary
Credit Analysts in the following states make the highest median salary in the US.
- Colorado – $44,300
- New York – $43,700
- California – $43,000
- Delaware – $42,900
- Wisconsin – $41,800
- Oregon – $41,600
- Massachusetts – $41,100
- Washington – $41,100
- Minnesota – $30,700
- Connecticut – $40,000
Credit Analyst Resources
Find additional resources on information about a career in Credit Analysis below.
On the Web
National Association of Credit Management –Information about obtaining the Certified Credit and Risk AnalystSM (CCRASM) Designation.
The Risk Management Association – Information about obtaining a Credit Analysis Certificate.
Credit Analyst Club Worldwide – A group with over 58,000 Credit Analysts where industry-related information is discussed.
Credit Risk Analyst Network – Created for Credit Analysts (working in Credit Risk Management) focusing on the following areas: FI’s, Banks, NBFI’s, Corporates and Asset Backed Securities.
@GetCreAnalyJobs – Credit Analyst jobs, careers and community site.
@CreditSpectrum – Global credit analysis from Hermes Fund Managers.