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A career guide to becoming a Credit Analyst

Published: Friday 13th November 2020

Credit analysts assess whether or not working with a particular individual or a company poses any financial risks, and as a result, they are extremely sought-after. Possessing a range of skills a career in credit analysis can prove profitable and quite versatile. Here’s all you need to know if you are considering to pursue a career in credit analysis…

What does a Credit Analyst do? 

Professionals in this role are in charge of assessing the creditworthiness of businesses and individuals through the analysis of credit data and financial information in order to make appropriate recommendations on a course of action for their customer. 

Credit analysts assess and make decisions about customer credit applications using a range of criteria including purpose of application, credit viability, payment history as well as creditworthiness. Credit analyst job duties include analysing and interpreting complicated financial information. Moreover, they gather information about clients, conduct risk analysis by developing statistical models and keep company credit exposures to the minimum. 

female, young credit analyst, accountant sitting on leather armchair at desktop in work station, open space office, working,

Other tasks can also include filling and submitting loan application forms for approval, using credit-scoring systems for small credit amounts, helping to enhance the quality of credit applications as well as making recommendations.

How to become a Credit Analyst 

To pursue a career in credit analysis a bachelor’s degree in accounting, finance, or a related field, is often the minimum requirement. In these degrees usually, the subjects covered will include financial statement analysis, industry assessments, economics, calculus, ratio analysis, statistics, and the basics of accounting and finance.

Other skills that credit analyst jobs may often require are:

  • Attention to detail as any missing piece of information may lead to an incorrect analysis and a costly problem for the company.
  • Quantitative analysis skills in order to create a set of numbers, understand and interpret them. 
  • Strong communication skills in order to effectively report results and present decisions and recommendations.
  • Good knowledge of Microsoft Excel, financial software or other similar tools to analyse numerical data.

Relevant paid or voluntary work experience via mentorship programmes, job shadowing, work experience placements and internships or courses could prove particularly beneficial.

credit analyst using smartphone, working on corporation financial history

Salaries and career development

Professionals can work in the credit department of a bank or other financial institution with a focus on assessing the creditworthiness of potential borrowers. However, professionals in this area possess a versatile skill set which can lead to opportunities in a range of sectors, such as corporate banking, asset management, aircraft leasing and insurance.

Professionals in this job start from the junior credit analyst position as the entry-level post for graduates. Those with an associate degree may take on responsibilities that deal with consumer evaluation. Those with several years of experience may be elevated to senior credit analysts. The more senior the role is, it comes with greater responsibilities. 

Working in this profession could prove a profitable career. For graduates, the average salary in the UK is around £31,000 per annum. For more senior professionals the salary can be anywhere from £50,000 to £70,000 per annum. 

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