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Loan Counselors

Loan counselors at banks, credit unions and other types of financial institutions help clients with creating a debt consolidation strategy and putting together personal loans. They also help clients with personal finance issues. A loan counselor helps people that find it difficult to qualify for traditional loans.

Those involved with loan counseling suggest the best type of loan for their clients and review with their clients the numerous requirements and restrictions of loans. A loan counselor processes their client's application materials, verifies the information and produces the required legal paperwork to finish the loan procedure. They also reschedule payments or restructure loans for clients that are having a difficult time making payments on their loans.

In some institutions loan counselors also act as salespersons and actively seek clients. Most loan counselors receive a salary but some also receive a commission for business they produce.

Responsibilities

  • Examine applicant's financial situation, property evaluations and credit to determine the feasibility of providing a loan
  • Review loan agreements to make sure they are complete and accurate
  • Answer client's questions about existing loans
  • Create payment priorities based on credit terms and interest rates to lower client's overall costs
  • Give loans to loan committees for approval
  • Approve loans within specific limits
  • Interview applicants and request specific information
  • Stay current with credit regulations

Job Characteristics

A loan processor should be detailed oriented and have good communication, math and interpersonal skills. They should also know how to use accounting software. They typically work forty hours per week and when they have a large number of clients they sometimes work some overtime.

Employment Outlook

The Bureau of Labor Statistics projects that the number of loan counselor jobs from 2006 to 2016 will grow at a rate that is comparable to other occupations. The median annual earnings for loan counselors in 2008 was $37,470. The top paying industries for the profession are financial investment services, residential building construction and automobile dealers.

Education, Certification, and Licensing

Employers at banks and credit agencies typically look for candidates that have earned at least a bachelor's degree in business or economics and have a few years of finance experience. They should also have a strong foundation in banking practices and state and federal lending laws. Loan counselors may need to pass state certification exams or fulfill the requirements of a professional credit association.

Resources

Major Employers

The top job providers are banks, savings and loans, credit unions, and college universities and professional schools.

Schools for Loan Counselors are listed in the Browse Schools Section.

Loan Counselors Skills

Below are the skills needed to be loan counselors according to their importance on the scale of 1 to 5 (1 being lowest and 5 being highest) and competency level on a scale of 1 to 7 (1 being lowest and 7 being highest).

   
Skill NameImportanceCompetence
Reading Comprehension44
Critical Thinking44
Active Listening44
Speaking43.88
Active Learning3.623.62

Loan Counselors Abilities

Below are the abilities needed to be loan counselors according to their importance on the scale of 1 to 5 (1 being lowest and 5 being highest) and competency level on a scale of 1 to 7 (1 being lowest and 7 being highest).

   
Ability NameImportanceCompetence
Oral Comprehension44
Deductive Reasoning44
Written Comprehension44
Speech Recognition3.883.88
Near Vision3.884.12

Loan Counselors Knowledge

Below are the knowledge areas needed to be loan counselors according to their importance on the scale of 1 to 5 (1 being lowest and 5 being highest) and competency level on a scale of 1 to 7 (1 being lowest and 7 being highest).

   
Knowledge AreaImportanceCompetence
Mathematics3.963.99
English Language3.894.04
Customer and Personal Service3.784.1
Computers and Electronics3.733.95
Clerical3.564.25

Loan Counselors Work activities

Below are the work activities involved in being loan counselors according to their importance on the scale of 1 to 5 (1 being lowest and 5 being highest) and competency level on a scale of 1 to 7 (1 being lowest and 5 being highest).

   
Work ActivityImportanceCompetence
Interacting With Computers4.473.28
Getting Information3.963.95
Establishing and Maintaining Interpersonal Relationships3.894.73
Performing for or Working Directly with the Public3.854.46
Processing Information3.694.14

Loan Counselors Work styles

Below are the work styles involved in being loan counselors according to their importance on the scale of 1 to 5 (1 being lowest and 5 being highest).

   
Work StyleImportance
Dependability4.66
Integrity4.53
Attention to Detail4.46
Self Control4.27
Cooperation4.17

Metro Areas Sorted by Total Employment for
Loan Counselors

Listed below are the 10 largest metro areas based on the total number of people employed in Loan Counselors jobs , as of 2017

   
Metro AreaTotal EmploymentAnnual Mean Salary
Phoenix-Mesa-Scottsdale1,930 $47,480
Los Angeles-Long Beach-Anaheim1,620 $58,320
Miami-Fort Lauderdale-West Palm Beach1,040 $46,360
San Diego-Carlsbad670 $52,690
Detroit-Warren-Dearborn630 $49,890
Dallas-Fort Worth-Arlington590 $56,510
Tampa-St. Petersburg-Clearwater550 $45,670
Knoxville530 $33,440
Atlanta-Sandy Springs-Roswell510 $57,980
Houston-The Woodlands-Sugar Land490 $48,150

Compare Total Employment & Salaries for Loan Counselors

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Employment
Salary

Total employment and salary for professions similar to loan counselors

Source : 2017 Occupational Employment Statistics and 2016-26 Employment Projections, Bureau of Labor Statistics, BLS.gov; O*NET® 22.1 Database, O*NET OnLine, National Center for O*NET Development, Employment & Training Administration, U.S. Department of Labor, onetonline.org

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Click the Request Info buttons to request more information from a representative at the school.

We have some additional detailed pages at the state level for Loan Counselors.

Numbers in parentheses are counts of relevant campus-based schools in the state; online schools may also be available.