Credit Analysts
Credit analysts analyse credit data and financial statements of individuals or firms to determine the degree of risk involved in extending credit or lending money. They prepare reports with credit information for use in decision making.
A credit analyst assesses the creditworthiness of a borrower to determine the likelihood of honouring their financial obligations.
Credit analysts gather and analyse financial data associated with lending and credit products, including reviewing a borrower's payment history, liabilities, assets, and earnings, to determine their potential risk to lenders. Credit analyst jobs involve interpreting financial statements, and comparing critical financial ratios with industry data to decide whether the borrower has adequate cash flows, after considering various risk factors like economic changes, stock market fluctuations, legislative changes, and regulatory requirements. They also grade or assign scores to debt issuers and their borrowing instruments.
A credit analyst career requires a minimum of a bachelor's degree in finance, economics, math, accounting, or other related fields, with courses in statistics, economics, financial statement analysis, and risk assessment. Required skills include due diligence, knowledge of the industry, ability to multitask, and being well-versed with financial software. With the right degree and experience, one can earn seven or more digits credit analyst salary.
Credit analyst jobs can be at banks, financial investment companies, insurance companies, and credit rating agencies. Businesses that extend credit to their customers like auto manufacturers, retail store chains and utilities and energy companies are amongst those who need credit analysts.
A credit analyst uses his or her research to ensure the borrower receives an affordable loan and the lender is protected if the borrower defaults.
Qualifications
Every career requires an element of study and academic qualification, and there can be several study routes and pathways you can take. In following any academic pathway you will study subjects that contribute to the specialised knowledge required to achieve your career goals. These qualifications provide a future employer with the evidence that you have the desired knowledge, understanding and experience of their industry, so it’s important to consider the various types of qualifications available to you and to understand how they can boost your career and create opportunities for you.
- MBA Master of Business Administration
- M.Com Master of Commerce
- B.Com Bachelor of Commerce
Tasks
- Analyze credit data and financial statements to determine the degree of risk involved in extending credit or lending money.
- Prepare reports that include the degree of risk involved in extending credit or lending money.
- Evaluate customer records and recommend payment plans, based on earnings, savings data, payment history, and purchase activity.
- Confer with credit association and other business representatives to exchange credit information.
- Complete loan applications, including credit analyses and summaries of loan requests, and submit to loan committees for approval.
- Generate financial ratios, using computer programs, to evaluate customers' financial status.
- Review individual or commercial customer files to identify and select delinquent accounts for collection.
- Compare liquidity, profitability, and credit histories of establishments being evaluated with those of similar establishments in the same industries and geographic locations.
- Consult with customers to resolve complaints and verify financial and credit transactions.
- Analyze financial data, such as income growth, quality of management, and market share to determine expected profitability of loans.
Progression Routes
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