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The job of a credit analyst is to review financial statements and credit data to determine the likelihood that a loan will be paid back in full. The financial data may include sufficient cash flow, comparing ratios to industry standards, comparison against other borrowers, and the borrower’s financial history. Credit analysts must have the ability to decide if the potential borrower will be able to meet their financial obligations.
What Does a Credit Analyst Do?
While the main responsibility of credit analysts is to determine the degree of risk involved in lending money or extending credit to borrowers, they are also accountable for a few other tasks. Within the borrower analyzation process, these professionals must understand how to use financial ratios and computer programs. After analyzation, reports need to be prepared that outline the degree of risk for customers.
A comparability process must also be used to measure the liquidity, credit history, and profitability of one borrower against another to learn about patterns in certain industries and geographic locations.
Credit analysts also need to communicate with credit associations, business representatives, and loan committees to exchange credit information and complete loan applications.
How Much Do Credit Analysts Make?
The median annual salary reported by the Bureau of Labor Statistics is $71,520. Those in the 90th percentile earn $137,610. Salaries are highest in the following industries: securities and commodity contracts intermediation and brokerage, automobile dealerships, and monetary authorities-central bank.
How Do I Become a Credit Analyst?
The majority of professionals in this field have earned at least a bachelor’s degree in accounting or business. Certification to become a designated Credit Business Associate is also available from the National Association of Credit Management. While this certification is not mandatory, it may be helpful during a job search. The certification exam is available to those who have completed three college-level courses in financial statements, business credit, and financial accounting.
Through the online B.A. in Accounting and online B.A. in Business programs from Concordia University, St. Paul, you can acquire the knowledge you need to excel as a credit analyst. Explore core business topics while learning from faculty who bring their real-world business experience into the online classroom. And with the programs’ flexible online format, you can study when it’s most convenient.