What do Credit Analysts Do?
If you have a penchant for numbers and pride yourself on interpreting and organizing data, you may want to consider a career as a credit analyst. Credit analysts analyze the credit data and financial statements of firms and businesses. Workers then assess the degree of financial risk that a business or individual poses if an institution were to issue it/them a loan. Credit analysts are an extremely important part of the financial industry and an unparalleled resource for banks across the country. After assessing the degree of risk, formal reports are usually compiled using the provided credit data.
Credit Analysts Skills and Abilities
An advanced level understanding of economics and finance is required to successfully perform this job. Analysts should also be proficient in higher-level mathematics such as algebra, statistics, and calculus. Critical thinking skills are needed, since you will be making important decisions that can drastically impact the financial future of a business or individual. Basic communication skills, such as professional speaking and writing, are highly valued in this industry. Analysts should also feel comfortable working with highly sensitive financial data for extended periods of time.
Credit Analysts Duties
The primary function of a credit analyst is to interpret financial information and determine whether a not an individual, business, or organization is worthy of receiving a loan. Financial ratios and statistics are employed, as well as past credit history, in order to make a final decision. Written reports are compiled and presented to superiors detailing the decision process and overall credit risk of a company. Files are usually reviewed on an individual basis before any type of decision is made. Credit analysts may also be charged with:
- Completing loan applications and submitting the finished product to a financial committee
- Identifying delinquent individual and commercial accounts for collection
- Addressing the financial questions, concerns, and complaints of customers and clients
- Consulting with credit associations and representatives in order to exchange data
- Evaluating customer accounts and recommending payment plans for delinquent and past due accounts
- Projecting potential financial growth of a particular company or institution
Credit Analysts Tools and Technology
Computers are heavily used by credit analysts in order to input and retrieve financial information. Credit calculating and accounting programs are commonly employed to assist analysts with making a sound decision. Mastery of these program (many of these require extensive training), is required to perform this job well. Basic accounting tools such as calculators, scanners, and printers are also used.
Education and Training for Credit Analysts
This career requires a moderate level of education, so a college degree will almost always be required. Roughly 47% of all credit analysts held a bachelors degree, and almost 17% held a masters. This makes credit analysis the ideal career for someone interested in receiving a college education and working in the finance industry. Degrees in finance and accounting are commonplace and needed to break into the industry. Extensive work experience is not needed to enter this field, but more experienced analysts can command higher wages.
Credit Analysts Salary
Credit analysis is a growing field that offers the potential to earn six-figure wages. The median annual income for a credit analyst is $67,000, with the top 10% grossing over $126,000 a year. Workers on the lower end of the salary spectrum earned a little more than $40,000 a year. Over the last year, there was 0.8% increase in credit analysis salaries nationwide.
Credit Analysts Jobs by Geography
Nationwide, California employed the most credit analysis, followed closely by Texas. On a state-by-state basis, credit analysis in New York, Connecticut, and North Carolina earned the highest salaries. Delaware, South Dakota, and Minnesota offered the highest concentration of jobs in this particular field. Analysts working the securities and commodities industry received the highest salaries and were the most in demand.