Credit Analysts evaluate the risk factors that may influence loan applications and approvals. 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 can be found in a wide variety of establishments, from financial institutions and agencies to more specialized companies in areas such as Insurance or Investment.
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, balance sheets, and any 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;
- determining interest rates and applicable ratios based on clients’ financial records; and
- preparing detailed reports on the findings.
- 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 creditworthiness; 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 credit files and clients’ information up-to-date by completing documentation, preparing detailed reports, and maintaining detailed computerized records.
- Providing good quality of customer service according to company policies.
- 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 applicable 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.
- Interpersonal and communication skills:
- Communicating clearly, both in writing and verbally, in order to effectively advise and interact with clients; and
- establishing and maintaining supportive working relationships.
- Organizational and time management skills:
- Prioritizing and planning work activities in order to manage time efficiently while handling a high volume of work; and
- multitasking; being able to work in a dynamic, fast-paced environment.
- Analytical, problem-solving, and decision-making skills:
- Effectively analyzing numerical data, drawing logical inferences, and providing reasonable recommendations;
- identifying issues and resolving problems in a timely manner; and
- being able to exercise strategical thinking and mature judgment.
- Strong attention to detail:
- Efficiently and accurately reviewing and entering accounting and financial information into a database; and
- staying focused during highly repetitive tasks.
- Administrative skills:
- Demonstrated computer proficiency in Microsoft Office suite and spreadsheet software, including the ability to develop and use formulas; and
- experience in creating graphics, flow charts, and projections in order to generate statistics.
- Goal-oriented, reliable, flexible, and confident:
- Being self-motivated, highly driven, and having an entrepreneurial personality; and
- being able to work independently.
Credit Analysts are responsible for assessing clients’ financial records thoroughly, in order to offer the most suitable credit option that meets their financial goals and needs; hence, they are required to have a vast knowledge of financial and bank credit lines, as well as to be familiar with current credit regulations and lending best practices. In this regard, having knowledge on mortgages, escrows, and titles are an asset.
Aside from the aforementioned skills, Credit Analysts are required to have an excellent knowledge of financial accounting, as well as a vast understanding of credit and financial analysis, and to have completed a bachelor’s degree in Finance, Business, Accounting, or to have obtained any other equivalent certification.
Most Credit Analysts require a minimum of 3 years of experience working in the Finance or Accounting field and must also have acquired relevant experience in a client-facing, accounting role. Having a basic knowledge of the sector in which the applicant wants to work is always a must.