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How Do I Become a Credit Analyst?

what does a credit analyst do

Research what it takes to become a credit analyst. Learn about education requirements, job duties, average wages and job outlook to find out if this is the career for you. Schools offering Accounting & Finance degrees can also be found in these popular choices.

Career Information At a Glance

Source: *U.S. Bureau of Labor Statistics

What Would I Do as a Credit Analyst?

These professionals analyze personal and business loan applications. In this entry-level position, you work with financial decision-makers to evaluate an individual's or business's future cash flow and current financial situation. You then recommend that loan officers or senior management approve or deny the loans. Credit analysts also assess credit markets and manage client inquiries, as well as handle any bankruptcies. Customer service skills, in addition to a keen grasp of financial analysis, are essential to this career.

Earn Your Degree

According to March 2015 job postings on most employers look for credit analysts who hold a bachelor's degree in finance or a related subject, such as accounting, business administration or economics. Core required courses in these bachelor's programs often include statistics, financial reporting, microeconomics, business strategy and managerial finance. Some programs allow you to gain real-world experience through an internship.

A few colleges

offer graduate or continuing education certificate programs in credit analysis or related fields, like financial analysis. These programs are typically designed for professionals who already hold a bachelor's degree. Certificate program coursework includes financial statement analysis, corporate financial policies and financial law.

Get Certified

While certification isn't required, earning a credential through a professional organization may improve your job prospects. The National Association of Credit Management offers the Credit Business Associate designation to individuals who complete three college-level courses in financial accounting, financial statements and business credit, in addition to a certification exam ( ). If you have at least five years of experience in commercial credits and loans, you could apply to take the exam for the Risk Management Association's Credit Risk Certification ( ).

Where Could I Work?

Most credit analysts work for banks and other financial institutions. You could also find work in the finance departments of companies in the insurance, automotive service or telecommunications industries. Some employers look for credit analysts who have work experience in collections or accounts receivable departments. Though credit analysts can work in any state, the U.S. Bureau of Labor Statistics notes that California, Texas, New York, Florida and Ohio had the highest employment levels for this occupation in 2014 ( ).

Category: Credit

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