A credit analyst is responsible for assessing a loan applicant’s ability to repay the loan and recommending that it be approved or denied. Credit analysts are employed by commercial and investment banks, credit card companies, credit rating agencies, and investment companies. They may also work in the credit departments of a wide range of companies.
What Does a Credit Analyst Do?
A credit analyst gathers and reviews financial data about loan applicants, including their payment habits and history, earnings and savings and spending patterns. The credit analyst then recommends approval or denial of the loan.
The minimum educational requirement for the position of credit analyst is usually an associate or bachelor’s degree in finance, accounting, or a related field. Applicants should be familiar with basic accounting and finance, statistics, ratio analysis, calculus, economics, industry assessment, and financial statement analysis.
Benefits of being a Credit Analyst
Credit analysts are in demand in a wide range of businesses in addition to banks and credit rating agencies.. Auto manufacturers, retail store chains, and even utilities and energy companies extend credit to their customers and hire credit analysts to help them do it.
The job can be a pathway to a career as an investment banker, portfolio manager, or loan and trust manager.