Credit Analysts assess the creditworthiness of loan applicants. In this regard, they are in charge of collecting and examining the financial background of applicants; hence, Credit Analysts analyze clients’ paying records, incomes, and savings history thoroughly.
The Credit Analyst’s position is easily confused with the one of Loan Officer. The latter assists clients throughout the entire process; they start by explaining the types of loans and their terms to subsequently conduct the verification and analysis of applicants’ financial records and circumstances, in order to determine if they qualify for a loan’s approval. On the other hand, Credit Analysts focus on examining clients’ credit-related information (e.g. financial statements and financial data updates) in order to determine the financial risk that may take place in case of being conferred a credit.
Credit Analysts usually work for credit unions, financial institutions, investment companies, private equity firms, investment funds, credit rating agencies, stockbrokers, and financial consulting firms.
Here’s a non-exhaustive list of common tasks Credit Analysts are required to complete.
- Supporting new and current clients on credit products:
- Setting up meeting with clients to obtain information on their financial background and to identify their needs and objectives;
- assessing applicants’ earning and spending capacity, as well as determining their assets and financial liabilities; and
- promoting credit lines and products attending to clients’ financial needs and goals.
- Providing accurate and prompt analysis of clients’ financial record:
- Examining financial statements, debt schedules, projections, tax returns, projections, balance sheets, and other financial documentation thoroughly;
- analyzing the trends observed in the documentation observed;
- highlighting any abnormality or information gaps denoted;
- determining risk factors;
- examining clients’ payment source;
- ensuring background and reference checks are completed; and
- determining interest rates and applicable ratios based on clients’ financial records; and
- Assisting the Manager, before the credit’s approval or rejection, by ensuring the client meets the requirements to obtain a credit:
- Collecting information and processing each file to the closing stage;
- contacting other financial institutions to verify the financial background of credit applicants;
- examining applicants’ assets and finances;
- analyzing the applicants’ capability to repay credit lines by conducting a thorough assessment on credit worthiness; and
- submitting a detailed report regarding any abnormality on the processed file.
- Maintaining detailed records on the applicants’ backgrounds:
- Keeping an accurate and up-to-date list of the annual reviews required pursuant to loan and credit regulations;
- compiling, copying, sorting, and filing records of the applications in progress and the ones already approved; and
- preparing monthly and quarterly credit reports
- Ensuring compliance with all internal control and established policies related to credit products, in order to guarantee transparency in every application processed.
- Meeting and interviewing applicants for credit lines, evaluating their financial status, references, credit, and ability to repay.
- Researching, gathering, and analyzing data to make effective and profitable decisions.
- Communicating with other financial institutions to request details on clients’ creditworthiness.
- Promoting the institution’s services and assisting clients in determining the most suitable credit line to meet their financial objectives and needs.
- Submitting the processed applications to the manager with the observations found in order to approve or reject the credit.
- Keeping the credit files supporting and clients’ information up-to-date by completing the documentation, preparing detailed reports, and maintaining detailed computerized records.
- Ensuring necessary due diligence to support clients and maintaining high ethical standards.
- Ensuring that documents are consistent and uphold to the institution’s standards.
- Calculating interest rates and applicable ratios on credits based on applicants’ financial record.
- Working, if possible, with clients’ Investment Advisors in fulfilling credit criteria.
- Staying up-to-date on credits’ current regulations.
The average Credit Analyst salary is $53,673 per year or $28 per hour. This is around 1.6 times more than the Median wage of the country. Entry level positions start at $38,000 while most experienced workers make up to $75,000. These results are based on 98 salaries extracted from job descriptions.