How to Become a Credit Analyst

Credit Analysts use their depth of knowledge to assist financial institutions determine whether a potential client has a credit worthy financial background.

Credit Analysts can focus their work on business or individual accounts and are able to lend their services in a wide range of industries.

The following is a list of industries and employers that are expected to hire the largest numbers of Credit Analysts through the year 2018:

  • Car dealerships
  • Company and enterprise management firms
  • Credit Intermediation
  • Depository Credit Intermediation
  • Non-depository Credit Intermediation
  • Financial Investments

If you are interested in this type of career and considering making the steps to become a Credit Analyst , continue reading the helpful information below.

You will find useful information regarding education requirements, a general job description and salary and wage information.

Education Requirements to Become a Credit Analyst

Candidates who want to become a Credit Analyst must have a strong background in mathematics and business concepts.

In order to accomplish this requirement, candidates need to attend a formal education program.

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Students can opt to complete an Associate’s degree that requires two years of schooling or finish a Bachelor’s degree which typically takes four years to accomplish.

Helpful majors that will help students become a Credit Analyst include studying Economics, Business, Accounting or a related field.

Some courses that will help students become competitive candidates include: mathematics, business, information technology and risk management classes.

Because Credit Analysts research a client’s background, interpret that information and relay it to decision makers, candidates must also have the ability to communicate efficiently.

Students can work on this skill by taking a variety of writing and communication courses to strengthen their background.

Students can also opt to pursue an M.B.A.

which takes an additional two years to complete after obtaining an undergraduate degree.

An M.B.A.

is not required.

However, candidates with this advanced degree will have better opportunities in the long run.

Credit Analyst Job Description

A Credit Analyst uses a potential client’s financial background in order to determine their creditworthiness and the degree of risk associated with possible loans and lines of credit.

Commercial Credit Analysts work solely with business accounts and determine whether they have the ability to repay loans and other debt.

A Credit Analyst’s work is extremely important for financial institutions to make sure they do not lend out money to unreliable clients.

Their work decreases the possibility of financial losses due to a client’s inability to repay a loan.

A Credit Analyst will help in the lending process by analyzing a potential client’s financial background.

The financial information Credit Analysts use to determine creditworthiness and risk include financial statements, credit data and lending habits.

Similar careers to that of a Credit Analyst in the financial and banking sectors include:

Credit Analyst Salary and Career Path

The Bureau of Labor Statistics reports that the median wage for Credit Analysts in 2010 was approximately $58,850 per year.

The salary range for these professionals during the same year was approximately $35,000 to $112,000 per year.

The exact salary will depend on various factors including job experience, geographic location and the company size a Credit Analyst is employed in.

The top paying industries include:

  • Financial Investment firms pay an average of $111,350 per year
  • Securities and commodity contracts intermediation firms pay an average of $92,500 per year
  • Brokerage intermediation firms pay an average of $92,500 per year
  • Software Publishers pay an average of $89,000 per year
  • Motor Vehicle Manufacturing companies pay an average of $85,400 per year
  • Petroleum and Coal Products Manufacturing companies pay an average of $82,900 per year

The Bureau of Labor Statistics reports that all professions in the banking sector will experience slower than average job growth.

The BLS estimates that the banking industry will grow by about 8 percent through the year 2018.

Job prospects will be good although competitive for potential Credit Analysts.

Individuals with an M.B.A.

or a Bachelor’s in Business Administration, Accounting or another business degree will have the best opportunities.

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