Credit analysts evaluate credit information and financial statements of individuals and companies in order to determine the degree of risk involved in lending money or extending credit. Credit analysts create reports for decision making purposes. They examine customer's records and recommend payment plans based on savings information, earnings, payment history and purchasing activities.
As risk analysts, commercial credit analysts specialize in determining the ability of businesses to repay their loans and other types of debts. They determine the risk involved with providing business loans and extending lines of credit.
A credit analyst develops financial profiles for companies by examining its credit history and comparing its cash and other liquid assets to its debts. Commercial credit analysts work for banks, other types of commercial lenders and government agencies.
- Exchange credit information with credit associations and other types of business representatives
- Create financial ratios by utilizing computer programs to evaluate a candidates financial status
- Compare credit histories, liquidity and profitability of companies being evaluated with similar companies in the same industries and locations
- Analyze a company's income growth, market share, management quality and other items to estimate the expected profitability from the loans
- Compile data for financial reports
- Monitor credit extension decisions
They should have a solid foundation in economics and accounting and mathematics. They should be detailed oriented and effective at analyzing data. A credit analyst also needs to be good at organizing and planning. Good interpersonal and communication skills are helpful.
Credit analysts utilize content workflow, document management and financial analysis software. They often work as part of a team and collaborate with management and clients.
The U.S. Department of Labor projects the growth rate for commercial credit analysts will be somewhat flat through 2016. In 2008 the annual median wage for credit analysts was $55,250. The top paying industries for credit analysts are financial investment activities and securities and commodity brokerages.
Education, Certification, and Licensing
Most credit analysts jobs require a bachelor's degree in accounting, finance, economics, business or a related financial field. They usually take classes in risk management, business, statistics, mathematics, information technology and appropriate computer software.
The top job providing sectors are banks, other types of lending institutions and the government.
Schools for Credit Analysts are listed in the Browse Schools Section.