How to Become a Credit Analyst
Credit Analyst Careers & Degrees

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.

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.

The below information is based on the 2019 BLS national averages.
  • Annually
  • Monthly
  • Hourly

National Average Salary

$84,930
$43K
$55K
$84K
$101K
$145K
10%
25%
50%
75%
90%

Average Salary by State

StateAvg. Annual Salary
Alabama$82,030
Arizona$64,700
Arkansas$58,750
California$91,050
Colorado$87,410
Connecticut$94,460
District of Columbia$105,010
Florida$81,130
Georgia$70,540
Hawaii$82,180
Idaho$61,670
Illinois$79,230
Indiana$61,980
Iowa$79,310
Kansas$65,700
Kentucky$77,660
Louisiana$61,770
Maine$73,220
Massachusetts$93,570
Michigan$65,800
Minnesota$80,980
Mississippi$59,770
Missouri$82,850
Montana$81,380
Nebraska$69,300
Nevada$71,900
New Hampshire$83,830
New Jersey$88,940
New Mexico$67,180
New York$123,470
North Carolina$87,150
North Dakota$71,240
Ohio$78,250
Oklahoma$59,680
Oregon$75,240
Pennsylvania$85,440
Rhode Island$76,540
South Carolina$68,420
South Dakota$63,920
Tennessee$66,540
Texas$78,020
Utah$58,870
Vermont$70,260
Virginia$87,810
Washington$79,860
West Virginia$61,860
Wisconsin$70,370
Wyoming$59,660
Puerto Rico$37,860

The top earning state in the field is New York, where the average salary is $123,470.

These are the top 5 earning states in the field:

New York - $123,470
District of Columbia - $105,010
Connecticut - $94,460
Massachusetts - $93,570
California - $91,050
* Salary information based on the May 2019 Occupational Employment Statistics (OES) Survey for Credit Analysts, OCC Code 13-2041, BLS.
* Employment conditions in your area may vary.

Frequently Asked Questions

QuestionWhat does a credit analyst do?

A credit analyst provides objective recommendations to banks and insurers whether or not to extend credit; that is done after the credit analyst had collected financial information and assessed various risk factors.

The specialists should not only have a profound background in finance but also be familiar with current financial market conditions.

The job responsibilities of a credit analyst would mainly depend on the employer that he or she decided to work for; large corporations, for example, can have a few credit analysts and each one of those would be responsible for a specific task (like compiling information on credit-backed derivatives or stock movements).

Credit analysts also make portfolio recommendations by collecting credit history and past financial statements.

QuestionHow much do credit analysts make?

On average, a credit analyst can make a little more than $64.500 per year in the United States.

In case you decide to choose this career path, you can expect to earn anywhere between $39.000 and $107.000 annually.

The salary would certainly depend on a variety of factors – your education and experience level, the employer, the location, and so on.

The professionals that work in the District of Columbia and New York, for example, have the highest average salaries.

An entry-level credit analyst can earn around $18.70 per hour; a top-level specialist with plenty of experience can make $51 and more per hour.

QuestionHow much does it cost to become a credit analyst?

You would need to have at least a bachelor’s degree in business or finance, in order to become a credit analyst

To improve job prospects, you would have to consider getting a master’s degree.

A year in a university can cost you anywhere between $8.000 and $30.000 (and more); the cost depends on a variety of factors (bear in mind that the books, supplies, and accommodation expenses are not included).

A master’s degree will cost you over $30.000, in most of the cases.

Bear in mind that financial analysis is not an exact science and you have to be ready to spend plenty of time studying the day-to-day fluctuations on the market.

QuestionWhat is the demand for credit analysts?

Between 2016 and 2026, the credit analyst job market is expected to grow by 8.3%, according to the Bureau of Labor Statistics.

The growth is just as fast as the average for all occupations in the United States.

The candidates that possess a master’s degree will have better chances of getting the highest-paid job.

The industry is mainly concentrated in New York, Texas, and California.

QuestionHow long does it take to become a credit analyst?

It will take you 4 years to obtain a bachelor’s degree and 1-2 years to get a master’s degree.

You can consider seeking an internship during your last year in university to get that on-job experience.

Specialists spend a lot of time studying the most recent fluctuations in financial markets, as a small swing can have the power to destroy the most thorough analysis.

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